Defense Contractor
Consulting Objectives
The client engaged TCG Consulting to assess its corporate travel, payment and expense management programs, across all business units; to identify benchmarking statistics on comparable and best-in-class programs; and, to provide specific recommendations for program improvements company-wide.
Idea/Strategy
TCG consultants first conducted a project planning session with the client’s Global Travel Council, to review project scope and requirements. We conducted site visits enterprise-wide to evaluate existing policies and programs that manage and reimburse travel related expenses. TCG presented all assessment findings and recommendations to the Global Travel Council and Supply Chain Council, who oversee company travel programs.
Tactics/Tools
- Onsite assessment at all Business Units
- Business Unit comparison matrix and impact by category
- Peer group benchmarking across travel, payment and expense management categories
- Two-year strategic plan
- Category responsibility assignment: restructuring of Global Travel Council
- Separate and distinct presentations to Travel Council, Supply Council and Executive Management
Results
TCG identified more than $100M in incremental travel related expenditures managed within the company’s various internal accounting systems. We presented enterprise benchmarks in the categories of agency services, programs and costs, compliance to preferred vendor contracts, policies, corporate card and processing costs related to the reimbursement of expense reports. TCG developed a two-year program vision and new Travel Council accountability requirements, and established budget projections in support of the new program vision. Our assessment identified possible incremental program savings in excess of $30 million annually, with ROI over the two-year plan period, at 37:1, providing a compelling case for change.
Client Profile
Scope of Services Global
Primary Business: Global Defense Contractor
Number of Annual Expense Reports Processed: 113,000
Number of Air Carriers: 6
Number of Travel Agencies: 4
Total Air Volume Annually: $220 million