Smaller Co. Outsources Travel Mgmt.

<B>Smaller Co. Outsources Travel Mgmt.</B>


<B>Company:</B> Great Lakes Dredge & Dock

<B>Headquarters:</B> Oak Brook, Ill.

<B>Annual Air Volume:</B> $4 million

<B>Consultant Hired:</B> Karen Roberts of Ill.-based RD Brown Co.


For companies with smaller travel budgets that cannot justify hiring a full-time travel manager, the value of outsourcing those duties to an outside consultant has proven advantageous.

Three years ago, Oak Brook, Ill.-based Great Lakes Dredge & Dock, the largest dredging contractor in the United States, decided to eliminate its full-time travel manager position and outsource the function to Karen Roberts of Illinois-based RD Brown Co. Great Lakes, with an annual air volume of $4 million and total T&E of $8 million, said it has recognized definite value in bringing in an outside source and has benefited from the expertise and knowledge Roberts has brought to the company. "We just don't see there's enough workload to support somebody solely for that function," said controller Don Luce, who joined the company as an engineer 17 years ago. "We want to be staying current, processing and collecting travel costs, and she's been able to provide that. It has been a cost benefit, helping us make some of these decisions."

The company originally engaged Roberts as a consultant, but eventually contracted her on a permanently outsourced basis. "The rationale for bringing her in was we had big numbers given the size of the company," Luce said. While outsourcing is not a new concept, it is one that is catching on for companies that may not require a full-time travel manager.

"The word is getting out," Roberts said, who also manages travel for another company on an outsourced basis. "There is more enthusiasm from companies saying, 'Hey, that makes sense.' Especially if you are a smaller market and don't have the budget to pay what expertise would demand."

Prior to Roberts' involvement, Great Lakes had a full-time travel manager and drew on the expertise of its agency, Lombard, Ill.-based Corporate Travel Management Group, which it continues to use to handle its reservations. Roberts, who has been on every side of the industry for the past 25 years, working for TWA and the Denver-based agency Corporate Travel Services, joined RD Brown Co. as a consultant three years ago.

Luce said Roberts provides a level of travel expertise that he doesn't have. "She is getting exposed to lots of other companies and can bring that knowledge back here," he said. "There is a comfort you get having someone out there working with other companies and plugged into other places."

Luce said Roberts has been very flexible with her schedule, giving more or less of her time to Great Lakes depending on her current project requirements. Roberts, who wrote the travel policy, created a travel newsletter and negotiated vendor contracts, this year is engaged in rolling out an automated T&E system and next year is looking to bring on online booking.

"We have such a great relationship," Roberts said. "They trust me and value my knowledge in that area. I have a lot of influence on how they decide different contracts and vendors."

Roberts recently helped Great Lakes select and implement IBM's T&E management system. Roberts headed up a team to evaluate the product, which included Luce, an MIS person, an accounts payable person and a couple of travelers. "We want to stay innovative and abreast of new technology," Luce said. "We need to make sure we process information as effectively and efficiently as possible."

Roberts said the company was looking for a customizable Web-based product that eventually could be rolled out internationally as well as domestically. Roberts wrote the request for proposals for the T&E system, narrowed down the list to four vendors and helped evaluate and select the final product. Now she's spearheading implementation. "Karen knows the corporate culture; she knows most of the employees," Luce said. "She knew enough about who we are as an organization to look at the product and say whether or not it was going to work."

Roberts, who is involved in onsite training of Great Lakes' 700 employees, expects the system to save the company up to $150,000 per year. "Cost savings was a big area of concern," Roberts said, "but cost savings would have meant nothing if it was not easy to use, required less time and less frustration.