Shirley Le Roux, MD of TraveluXion gives SmartProcurement her insights into the answer to this question that has resulted in companies not having visibility of all potential T&E expenditure prior to approval against applicable budgets, and thus not extracting the associated business value.
How important is travel and expense (T&E) expenditure within your organisation?
Every time we have put this question to any role player responsible for T&E within an organisation the standard response is that T&E spend is “x percentage of my total spend” and depending on the percentage value, the importance will be high or low.
More often than not the feedback is that T&E and any technology surrounding this is placed at the bottom of any project list as it does not warrant any significant prioritisation, because there is always a higher-priority project.
Through its constant engagement and workshops TraveluXion is attempting to place the real value of travel at the forefront of the decision-making process.
In other words do not view your T&E expenditure only as a cost to travel, view it from a perspective of how much value this business trip will bring to your business.
Technology enables approvers to ascertain the business value of any particular trip and decline any potential trip that is not deemed business-critical at a pre-trip approval stage, or more importantly make a decision to override a particular company policy (e.g. class of travel if the business value far outweighs the associated cost. This information is critical in order to make informed decisions, and in so doing we elevate the importance of any associated trip within the organisation.
Rolling out an automated THE solution will save your organisation by eliminating or enabling travel spend based on a real business need. It will also measure all travel requests that have been deleted by the approver for a record of real savings.
These are just two of the very exciting areas where T&E technology will afford companies the opportunity to begin measuring and accounting for T&E spend in a new and effective manner. Take a moment to ascertain where your T&E processes fit into the Eisenhower matrix alongside.