The Challenge

A global pharmaceutical company had experienced double-digit growth year over year for four years and added over 10,000 new employees.

Their travel program was fragmented and lacked transparency, with no global mandate across their 39 markets. The company’s growth amplified its need for better travel forecasting and consistency. Using benchmarking, it was found that their hotel and airline programs were delivering savings in a few key markets; however, they were not implemented globally and were unable to take full advantage of hard-won supplier agreements without consolidated data.

The company set out to partner with a TMC that could support their global needs in a way that empowered their local affiliates to take part in the process.

The Solution

We worked closely with the client to accomplish:

Phased implementation
Local stakeholders on both sides were brought into the process early to ensure that key influencers were fully engaged and equipped with the bid outcome rationale, including customizable communication plans that would ensure the greatest buy-in for local offices and their travelers. The phased approach gave us the opportunity to build an ever-compelling managed program as more markets went live.

Program transparency
The first step to achieving greater spend visibility and consolidated reporting was to implement globally standardized data requirements. For example, consistent application of trip reason codes made internal benchmarking possible. Standardized consolidated reporting provided visibility into areas such as unused air tickets – $1.3 million in unused air tickets was reduced to $20,000 in the first year. 

Policy adoption
A new global policy was introduced to balance managing costs and traveler satisfaction. Advance booking of 14+ days is now well over 76% of air purchased. Our global account manager continues to drive adoption by working with local stakeholders to educate and encourage compliance.

Consistent service
We report on more than 20 performance metrics monthly to deliver on our service level commitment. These metrics are then used to calculate a combined percentage of service quality and consistency. By the close of the first year, every market earned over 96%. 

Results

The client consolidated their program across 39 markets and implemented 89% of the $100M spend. The company’s consistently consolidated buying power allowed for a $6 million USD savings target in the first year, driven by supplier negotiation and optimization, online adoption, and policy compliance.