Here’s a success story that fits well with Procurement’s role in managing travel costs.
Business Travel News describes how Deloitte achieved huge savings from implementing a pre-trip approval system. So what, you say? How hard can it be to turn off the travel spigot, right? That is indeed the blunt axe approach that many companies have taken in order to reduce travel costs. Fortunately, Deloitte is much smarter than that, and we can learn from them. Highpoints are:
- Research showed that 28% of trips were discretionary (non-client facing, or non-revenue generating, and not essential)
- Senior management – not procurement – set the goal of reducing the discretionary travel costs. Procurement was included as the enabler.
- Implemented BCD Travel’s pre-trip system (BCD is Deloitte’s travel management company)
- Had strong top-down support in most, but not all, business units – and results were directly proportional to this
Deloite has one of the world’s largest travel programs, and as a white/gold-collar firm, has its share of big-ego travelers. If Deloitte can do this, so can you. Brian Nichols, Senior Manager of Deloitte’s travel program, and his team did most of the heavy lifting. I’ll ask Brian to share his keys to success here.