Employee travel practices improved with $150,000 reduction

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Professional Services

The situation

Our client has a very public profile and has offices throughout New Zealand. To conduct its business, staff were required to travel frequently, with the actual persons travelling not known until close to the date of travel. Also there, were regular travel commitments. The travel practices that had evolved resulted in bookings being made reasonably close to the date of travel.

This resulted in higher fares being paid, and some arrangements had to be altered to get people where they needed to be. Travel practice was monitored, but because, the supporting networks were inadequate, the travel procedures and policies could not be properly implemented.

Accommodation had also become ad-hoc, with travellers staying where they liked because specific requirements had not been adequately specified to the listed preferred suppliers.

The solution

ERA’s analysis confirmed the travel patterns of the organisation and highlighted the various areas in the processes that were causing the problems. A series of meetings with key travellers and senior management resulted in resilient user requirements being documented.

Selected suppliers were approached to provide their solutions and the Travel Management Company (TMC) which best demonstrated its ability to meet those requirements was appointed.

The Travel Policies were reviewed in conjunction with the TMC, and the On-line Travel Booking System customised to meet the need. The result was that the known bookings for events were able to be secured, with traveller details confirmed later.

The travel approval processes were overhauled to simplify the process and allow some of the long lead times to be taken advantage. A pool of accommodation suppliers, with the specific needs catered for, was established.

"The outcome was expenditure was reduced in excess of $150,000 per annum, which represented a 13% reduction."

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