Global Corporate Travel Program – Fortune 500 Diversified Manufacturer

The client’s disparate approach to travel management resulted in minimal visibility and discounts for travel spend. Their lack of management caused over $100 million of unknown and unconsolidated spends across Air, Hotel, Rental Car, and Travel Management Services.

Potential savings opportunities were uncovered and various organizational issues impeding cost-effective performance were identified. Specifically, the Gibson team:

• Conducted interviews and focus groups with business unit representatives and employees to determine challenges, concerns and interests for a new program.
• Captured client specific business requirements needed to drive project success.
• Identified current contracts for any additional savings opportunities.

To achieve total cost savings on over $100 million in annual spend, Gibson Consulting Group implemented a Strategic Sourcing initiative targeting travel management, credit card, rental car, hotel and air providers. The Gibson team:

• Delivered skill-based training to the client team in Sourcing Methodology, Executive Communications and Supplier Negotiations.
• Identified and engaged a wide-range of national, regional and select local suppliers to obtain the highest levels of operational value and coverage at the best overall cost for our client.
• Utilized industry resources and market knowledge to capture competitive advantages throughout the sourcing process.
• Engaged suppliers in a multi-phased approach for distribution and evaluation of online requests for proposals.
• Defined and carefully developed category specific negotiable issues for effective and efficient negotiations.
• Established the strategic approach of moving from a non-managed travel program to a fully managed program, opening the opportunity for increased savings in future contracts and policy modifications.
• Aided in the facilitation and hire of a global travel manager.

Cost savings were achieved by reducing the client’s supplier base and significantly improving alliance management relationships with the selected suppliers.

• Achieved $2.2M benefit via credit card programs (travel & entertainment and purchasing card).
• Achieved $5.6M benefit in rental car, air, and hotel programs.
• Increased visibility for deeper future savings with hotel, air, and rental car suppliers.
• Negotiated implementation credits from suppliers to offset costs related to supplier transition and implementation.
• Established long-term mutually beneficial relationships with hotel, air, rental car and travel management partners.
• Negotiated on-site travel consultant support for no price increase.
• Implemented industry leading technology for traveler tracking and safety.