PODCAST: How to Procure Travel More Strategically by Measuring Outcomes, Not Savings.
Guest: Scott Gillespie, CEO, tClara
Episode Number: 108
Publication Date: Tuesday November 22nd 2016, 10AM AEST
“Travel is a category that relies on a very basic, low PQ (procurement quotient) data. There are very basic metrics being used and the art has not advanced” – Scott Gillespie, tClara
Scott Gillespie is an expert in procurement, and corporate travel. He was an original member of the AT Kearney team that launched the 7-step sourcing process in the 1990’s, and has since founded a number of companies with a focus on helping organizations better understand, benchmark and measure the performance of their corporate travel programs. Scott also authors the popular blog Gillespie’s Guide to Travel & Procurement.
Scott passionately believes that corporate travel programs should be managed on outcomes, and value, rather than cost alone. In today’s Art of Procurement, Scott and I discuss innovative ways in which procurement leaders can manage the success of their travel program over and above the traditional cost-focused metrics.
Areas we cover include:
- The basic key metrics that are foundational to any corporate travel program.
- The best sources of data for gathering travel spend information.
- Cost drivers that have the biggest impact on travel spend.
- An introduction to the concept of traveler friction.
- The importance of taking into account trip outcomes vs. just focusing on trip cost.
- What constitutes a “road warrior” and should they be subject to different travel policies vs. irregular travelers.
- An overview of four key metrics that enable value-focused measurement of a corporate travel program:
- Scrap rate of travel
- Traveler risk management index
- Attrition rate of road warrior population
- Trip quality