Managing sourcing for a small or midmarket multinational travel program doesn't often include a large margin for error. International airfare can be an expensive proposition, as just one example, but SMEs don't always have the ability to demonstrate the kind of volume that can persuade an airline to offer them a good discount. And creating the conditions necessary to direct and demonstrate that volume can challenge even creative procurement and travel managers.
For Eddie Martinez, indirect commodity manager for Austin, Texas-based multinational telecommunications and networking form Aviat Networks, the solution to all these challenges sat in the data.
Since Martinez joined Aviat in 2018, the company has consolidated its preferred travel management company roster to one for all countries in which it operates, down from three. It has deployed a travel data dashboard that brings in TMC booking data as well as travel expense data to heighten visibility into the details of Aviat's travel spending for senior management. It also has used that data to secure a global discount from United Airlines under the terms of its midmarket program.
Program Consolidation Offers Strategic Vantage Point
With annual travel spend of about $5 million, Aviat sits at the lower end of the midmarket. But it was a desire for more visibility into that spend, Martinez said, that spurred the company into action.
Aviat operates in the U.K., France, Poland, India, Singapore, New Zealand and several countries in Africa as well as the United States, and the decision to service travel in those countries using multiple TMCs made sense at the time, Martinez said, since it fit the needs of those locations. But doing so presented one problem: Aviat wanted to build a dashboard to allow full travel spending visibility, but the travel data feeds from those TMCs weren't delivered in identical formats.
"When speaking with our CEO, he was asking why we had this information from this location [and different information from another location]. The information was not [consistent] enough to put in this T&E dashboard," Martinez said.
The solution, quickly decided, was converting to a single TMC worldwide. Pleased not only with the service but also the data feed Aviat was receiving from Corporate Travel Management, its incumbent TMC in the U.K., Martinez explored the possibility of global service.
"When I was getting the reports, they had a hundred lines that I could look through and say, 'let's winnow it down to maybe 50,' Martinez said. "I've worked with different TMCs, and when I asked them about the report, it's like, 'Well, we can only provide you so many data lines or rows.' So when it came down to data, because they're providing us with great service, the information that they provided to us already was amazing. Let's see if they can fit the need for all of the locations."
Martinez did not undertake a formal request-for-proposals process, calling it instead "RFI-ish; just for what fit our needs." Comfortable with CTM's presence in the United States and noting that the TMC's Australian roots could help in converting New Zealand and Singapore, Martinez pushed ahead to consolidate with CTM.
"It was kind of informal," said Martinez, who resides in Aviat's supply chain operation. "I did the research, presented the case to my leader and once she reviewed it, sent it to the CEO. They reviewed it and said, go for it."
Aviat switched first to CTM in 2019 in New Zealand and Singapore and moved to CTM in the United States in early February. Aviat also deployed Lightning, CTM's proprietary online booking tool.
Receiving travel booking information from CTM has allowed a broader view of travel spending through Aviat's in-house built travel dashboard, which also incorporates travel expense feeds from its Oracle iExpense expense management tool.
"Now, when leaders look at their information from a holistic view, they see all locations, all T&E spend, the reasons why, who, what, when, where," Martinez said. "So they understand better what's going on within the business."
Martinez gets a better view, too. "I can look at things strategically as opposed to, 'Here's a fire. Let me go put it out.' "
Driving Compliance & Gaining Credibility
Dashboard access is limited to senior corporate managers, but reports are available on-demand, allowing the midmarket firm to determine not only how much it is spending on travel but also any discrepancies in booking and expense data. Those discrepancies can lead to sussing out noncompliant bookings made outside of Lightning or CTM's agents.
"We use [the dashboard] to see who's not booking within the tool. We can see who expensed [travel] versus who made reservations in the tool," Martinez said. "Then you can have that conversation to ask, 'Hey, what's going on?' "
With this data in hand and Aviat's TMC services now globally consolidated, Martinez said his United sales representative considers Aviat a good candidate to receive discounts under the carrier's United for Business program, which incorporates what used to be called United's Propel midmarket program. United currently is Aviat's preferred carrier, and Martinez said he will analyze several months of 2020 travel data to see if stronger policy is requited concerning its use. "We're just waiting on the data right now so we can make those hard decisions," he said.
Aviat does direct travelers to use preferred properties in each of its locations. Using a single TMC helps in this area as well, Martinez said, as it enables international travelers quick booking access to those properties and gives him easy access to the data.
"Everyone, no matter where they're traveling from, can book the preferred hotel easily, which we weren't able to do before," Martinez said. Then, to get the data, he looks to his consolidated travel and expense dashboard. "Before, I had to talk to three different TMC account managers to upload the data. It's great now."