Category Specific: Travel Value Beyond Savings

108: How to Procure Travel More Strategically by Measuring Outcomes, Not Savings w/ Scott Gillespie

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.

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“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.”

In this episode, you will learn:

  • 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

Links and Resources:

About the author

Philip Ideson

Philip Ideson is passionate about the role that procurement professionals and leaders can plan in creating competitive advantage for their organizations in ways that go beyond the traditional value proposition.

Philip founded Art of Procurement as a way for the procurement community to learn from each other, increasing the impact they have on their organizations. In 2017, he co-founded Palambridge, a virtual platform of procurement experts, technology, and intelligence. Palambridge provides a broad range of flexible procurement solutions, available on-demand.

Prior to Art of Procurement and Palambridge, Philip enjoyed a career that spanned the procurement value chain, working across three continents for organizations such as Accenture, Procurian, Ally Financial, Pfizer and Ford Motor Company.