Profiles In Travel Management: Parexel Parlays Policy, Practices Into Compliance

Rapidly expanding biopharmaceutical services provider Parexel International's procurement-driven travel program globalization has helped create considerable savings by applying new metrics to shifting traveler behavior, using a best-in-market supplier approach, moving to a lodge card in some of its largest markets and building a companywide travel council to aid in the change management process for 9,250 employees.

Changes in policy and procurement practices thus far have reduced Waltham, Mass.-based Parexel's T&E spending by 15 percent to 25 percent. The company had more than $10 million in U.S. booked air volume in 2008.

In March, the company began consolidating data, payment tools and agencies. Consolidation is underway in the United Kingdom and United States. Currently, Lufthansa City Center and HRG handle most of Europe. Asia/Pacific consolidation with FCm Travel Solutions also has begun.

"When you put all of your business with one vendor, whether its telecommunications or hardware, you really reduce your ability to be agile and to move from one vendor to another when needed," said vice president of worldwide procurement and travel Cynthia Crooks-Garcia. "I like to have an approach that gives me flexibility and keeps sharp competition for the business."

When Crooks-Garcia joined Parexel in 2006, travel was handled country by country—regionally, in some cases—with a variety of travel management companies. In her first six months, she laid the foundation for a cohesive global travel management unit. Rather than consolidate with one agency, Crooks-Garcia leveraged her procurement background to focus on regional agency consolidations.

"We're trying to make sure that our local markets are well taken care of by people who have a lot of experience and knowledge," Crooks-Garcia said. "Yet, they are able to report the data I need to be able to manage the global program."

Crooks-Garcia greatly increased compliance two years ago when Parexel began rolling out from Germany an AirPlus-issued central-bill airfare lodge card program with Universal Air Travel Plan. Parexel now uses the payment program in Canada, France, Hungary, Italy, Spain and, following a May 2008 global policy rollout, the United States. It will add China and Singapore next quarter. The payment method transition has reduced agency leakage 30 percent to 50 percent, she said.

"As soon as we moved to a central managed card," she said, "I was able to detect anyone who was going outside of the agency to buy their airfare."

Demand management and traveler education efforts also created savings. Videoconferences increased 200 percent from last year, Crooks-Garcia said. Department vice president approval is required for most travel. Previously, manager/director-level approval was required.

With the significant travel management alterations at Parexel, Crooks-Garcia has enlisted the aid of a travel administrative council first established in October 2008. The worldwide travel and procurement team—travel arrangers and meeting planners from 71 offices in 51 countries—originally formed to educate employees about cost savings, but has evolved into a testing ground for new projects and technology. The council meets monthly. Members also belong to committees responsible for such categories as meetings management, online booking tools and payment systems, which was key for the move to central payment in the United States.

"It was quite smooth," said Crooks-Garcia, "because we educated all of the admins who we know are doing the bulk of the expense reports and managing their executives to get the work done and changes done with the least amount of interruption of the flow of business."