What Is Procurement and How Does It Apply to Corporate Travel?
What is procurement, you may ask, and how does it apply to corporate travel? In a global economy, businesses need more than a good revenue stream to get ahead. They need to be leaner and more efficient, moving away from outdated methods of accomplishing tasks and looking for better ways to save money and grow. A vital procurement management strategy enables businesses to not just survive but thrive.
If you hope for your company to move ahead in the digital age, you need easier ways to analyze expenditures and find more cost-effective methods for managing your funds. Using procurement management offered through a good online travel agency can help.
What Is Procurement?
Procurement is the way a company manages its relationships with suppliers. A good procurement manager selects the best suppliers and then negotiates with them for the best possible price.
Retailers need procurement management to get goods from manufacturers and suppliers as well as distributors at the best price. Manufacturers need procurement management to get the raw materials they need at a cost they can afford. No matter the business, procurement is vital to survival.
What Is Procurement and How Does It Apply to Corporate Travel?
Travel procurement is the process of booking flights and hotel rooms as well as train tickets and car rentals that company employees need to carry out business operations. Many different departments may handle this procurement, from human resource managers to dedicated procurement professionals.
Sometimes the employees handle the bookings themselves and the company then reimburses the employee for their expenses. However, this can get expensive. Employees who procure their own bookings don’t always check for the best rates, because they know the company is paying. A large percentage of business travelers tend to select the most expensive tickets.
We at Rocketrip have provided a low-cost solution where employees are rewarded for choosing the trip with the lowest price. Our online travel company helps you find the best rates that save your company money. For those who are still wondering what is procurement as far as corporate travel goes, here are some of the solutions an online travel agency brings to your procurement process.
1. The Old Requisition Method Is Time-Consuming
The old method of requisitions meant employees had to fill out a purchase form asking for travel expenses. That form then had to be reviewed and approved, and the employee either paid for expenses with a corporate credit card or paid out of pocket and later got reimbursed. Such a method is time-consuming and frustrating, especially if you have to make changes to the travel plans. Companies are now realizing the importance of integrating technology with travel procurement to make it easier for employees and managers alike.
2. Cloud-Based Tools Enable Business Travel To Be Dynamic
Plans change, so make sure you choose an online agency that’s dynamic. With cloud-based tools, you can easily cancel reservations and make new ones whenever you or your employees need to alter your schedule. An online agency gives you the flexibility you need.
3. Online Travel Agencies Provide a Safer Way To Travel
When you send your employees to another city or country, you need to make sure they’re traveling to a safe environment. Look for an online travel agency that enables you and your employees to learn what the COVID restrictions are in the area they’re going to. Find out whether COVID testing will be required.
You also need to know the visa requirements or whether there are any natural or manmade disasters in the area. A good online agency gives you the up-to-the minute information you need.
4. Employees Have a Say in Their Bookings
For employee satisfaction, it’s important your workers have a say in the reservations they procure. For example, they might want to travel the day before a conference in order to get a good night’s sleep and be well-rested for meetings. Using an online travel agency gives your employees a variety of options when choosing their bookings.
5. A Good Online Agency Makes It Fun To Find the Best Price
Look for an agency that provides a fun incentive so that your employees want to choose the best price the next time they need to reserve a flight or other reservations. Find an online travel agency that rewards employees for saving money while also saving money for your company. At Rocketrip, your employees are rewarded with 50% of what they save. They can redeem that money on gift cards or donate it to their favorite nonprofit organization.
6. Cloud-Based Travel Agencies Provide Instant Analytics
A good online travel agency allows you to see instantly how much money your company is spending on travel each month, along with the money your company is saving by finding low-cost flights. You are also able to keep track of your employees’ travel arrangements.
With the right online travel agency, you can easily run a cost analysis on each department. You can even set up a budget online. This streamlines the approval process, making it much faster, so you save time as well as money.
7. Your Business Can Manage Global Emissions While Managing Money
Companies are increasingly facing the task of reducing their carbon footprint. Airline travel along with other forms of transportation generate emissions that can harm the planet. For the sake of our future, it’s important to find the most environmentally friendly travel arrangements that are available.
When choosing an online travel agency, look for one that has a calculator that provides carbon emissions data. That way you can work with your finance department as well as sustainability specialists to find the best travel plans for your company.
Answering the Question: What Is Procurement?
What is procurement and how can it help your business reduce and manage travel expenses? Procurement management techniques, including a streamlined way to cut costs while making business travel planning more fun for your employees, can help you get miles ahead of the competition. We at Rocketrip are ready to help. Contact us for more information.
