Case Studies > Consumer Goods Manufacturer

Consumer Goods Manufacturer

The Challenge

This consumer manufacturer’s history spans 150 years of innovation producing top quality, trusted medicines, medical devices, hygiene and other home products. With an annual travel spend of over $15M, it has a constantly evolving global portfolio of consumer health brands which are found in millions of homes in nearly 200 countries. The company operates in over 60 countries worldwide.

Direct Travel’s challenge was focused on achieving Best in Class results in every travel category to maximize cost savings, optimize cost avoidance and enhance the VIP/traveler’s experience.

The Diagnosis

Direct Travel determined that major savings could be achieved by tighter management of the company’s $13M air spend through the negotiation of flat fixed fares on their primary city pair. DT also observed that the Concur Travel online booking tool was being seriously underutilized.

The Solution

Direct Travel immediately established training groups to optimize the Concur Travel online booking tool adoption rate. DT also negotiated multi-national and JV Global Agreements to maximize savings on the company’s overall air volume. The Direct Travel Savings Desk also addressed better negotiated rates on city pairs outside their overall contracts. Beyond this, car, limo and hotel RFPs were instituted to achieve competitive rates and enhance savings in these areas of the company’s total travel spend.

The Results

Benefits of the new travel program included:

  • Management of air expenditures resulted in $1.8M savings covering 75% of overall volume.
  • Additional $50,000 dollars saved on city pairs outside overall contracts.
  • Flat fixed fares of 70% discounts were negotiated on their number one city pair of US to London in Business Class.
  • Savings on Virgin exceeded $1.2M with additional savings of over $250,000 of complimentary car service traveling in business class both in US and London.
  • Training groups increased online booking tool adoption from 27% to 56%representing a cost savings of over $130,000 (DT is working aggressively to achieve a 75% Concur goal for 2015).
  • Car RFP on $570,000 spend resulted in an savings of $80,000 as well as a tiered rebate revenue opportunity of up 7%.
  • Hotel Sabre RFP on $2M spend resulted in 15% 20% saving off Best Available Rates and cost avoidance of breakfast, Wi-Fi, shuttle, corporate recognition where available.
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