Most organisations allow their employees to arrange their own travel-related bookings. It is one of the reasons that companies tend to spend more on travel, especially those without a travel budget. So, if you are a procurement professional, you may want to look at establishing systems and procedures for travel procurement.
Here are some advantages of travel procurement:
Savings
Travel procurement can help a company save money by ensuring it looks for the right sources to get the lowest price. The company can have deals with travel suppliers so that executives use these to maximise savings for the organisation. It is also prudent to have an authorisation process for sanctioning travel so that executives can avoid unnecessary trips.
Enhance employee productivity
If an organisation has dedicated professionals for travel procurement, who have access to the right technologies, it can ensure that executives do not have to spend time arranging their travel. As a result, employees can focus on their work rather than making travel arrangements. It also helps to centralise travel and ensure that it is done from a single point.
Ensure compliance
Companies have rules and policies that employees from top to bottom have to follow. When it comes to travel, policies are often overlooked. However, if a company adopts travel procurement, it will ensure it can enforce corporate travel policy that helps to minimise expenses and liabilities while ensuring that travel arrangements meet the needs of the employee.
Provide right support to employees
With full-fledged travel procurement policy in place, employees can get the right travel support before, during, and after their trip. If there are changes to the travel itinerary, the department can communicate it to the personnel concerned, to prevent complications and reduce liabilities.
These are some of the benefits that organisations enjoy with travel procurement. It will enable employees to adhere to the company’s buying decisions when it comes to buying travel-related products. Travel procurement from a single source allows the company to take up cost-saving initiatives, which can result in significant savings.