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Lloyd's Register Group case study

Our background with Lloyd’s Register Group

The Lloyd’s Register Group is a global independent risk management and safety assurance organization. The group provides services designed to help clients around the world achieve their business goals, while optimizing safety, quality and protecting the environment.

Lloyd’s Register Group appointed FCm as their preferred global travel provider in 2009. After a successful four-year partnership FCm was again named Lloyd’s preferred travel management company in 2012 for another three years. FCm works with Lloyds in 45 countries.

Yes it is.

After re-winning the global travel management contract for Lloyd’s Register Group in 2012, FCm proposed and implemented a new strategic business plan to deliver the group further savings of more than USD1 million.

Here’s how we made it possible…

After consolidating Lloyd’s Register Group’s travel program in 2009 and boosting their bottom line with direct travel savings worth USD6 million after the first 12 months, FCm was keen to show the global company how they could save more on travel over 12 months. FCm developed an aggressive cost savings plan that targeted 4% in travel cost savings through further consolidation, improved traveler buying behavior, supplier deals and compliance to policy.
 
FCm’s plan focused on five key areas of travel management and included change strategies to enhance consolidation, cost management, compliance, corporate social responsibility and customer satisfaction.
 

Our solutions

FCm’s multinational account management team that devised the plan worked closely with Lloyd’s procurement division and senior management to implement changes across the company’s
program. Areas of focus included:
 
Consolidation
  • FCm further consolidated Lloyd’s program to include the group’s newly acquired businesses Moduspec and Scandpower. FCm also consolidated Lloyd’s operations that had expanded to Peru, Venezuela, Egypt and Taiwan.
  • The inclusion of these businesses within Lloyd’s global travel program ensured these divisions could benefit from pre-existing supplier contracts and deals that FCm had previously negotiated for Lloyd’s with suppliers.
  • The increase in travel volumes from these new businesses enabled Lloyd’s to improve their existing strategies with suppliers. FCm specifically focused on improving Lloyd’s contracts with their European suppliers and negotiated new supplier deals with contracted carriers for the company’s high-capacity air routes.
  • Further consolidation of Lloyd’s program also delivered more hotel accommodation savings. Renewed supplier negotiations with contracted hotels instigated by FCm delivered further
    savings through the use of ‘smart rates’ that do not compromise on comfort or inclusions.
Cost management
  • Improved buying behavior through targeted strategies for improving advance purchase for Lloyd’s departments that have the ability to book well in advance of their departure dates.
  • FCm also provided strategies to reduce missed savings by targeting lowest logical fares and the reasons why these fares were not taken.
  • FCm suggested Lloyd’s outsource the strategic sourcing of their global hotel program and global car hire program to FCm to reduce their internal resourcing costs. This initiative saw FCm deliver a high performance hotel program for the company in 2013.
Compliance
  • Program compliancy: further consolidation of Lloyd’s travel program meant consistent procedures were in place globally for travel booking, billing and preferred suppliers. FCm also provides consistent interpretation and application of policies, Service Level Agreement and Management Information Reporting across all markets.
  • Travel policy: consolidation of FCm services across all of Lloyd’s markets ensured a global travel policy review could be undertaken and mandates implemented to optimize savings strategies and buying behavior.
  • Travel policy: FCm advised Lloyd’s to escalate non-compliant bookings for further action, which needed to be supported by the company’s senior management. Further communication to staff on the benefits of policy compliance was also proposed. FCm advised Lloyd’s to more closely monitor out-of-policy approvals for validity as this area would offer scope for further savings.
  • Buying behavior: FCm suggested Lloyd’s have more than 30% of their travelers purchase their domestic tickets 7–14 days in advance rather than 3–6 days for more savings through advance purchase.
Corporate social responsibility
  • FCm deployed ISOS traveler tracking capability that was linked to Lloyd’s data via FCm’s ClientBank Connect reporting tool.
  • Enhanced reporting feeds globally helped to streamline the traveler monitoring process for Lloyd’s Register Group.
Customer satisfaction
  • While procurement managers have long focused on direct savings, FCm recognizes that now procurement managers are focused on achieving greater compliance through ‘happy travelers.’ As such FCm focused on providing the right tools along with easy user guides for Lloyd’s travelers, which are paramount to increasing higher online adoption rates.
Results
  • FCm’s global business plan successfully delivered to Lloyd’s an additional USD1 million in direct travel savings. These were savings on the pre-existing travel program.
  • Further consolidation of Lloyd’s travel program including newly acquired businesses and enabled further negotiation with a range of air, hotel and car rental suppliers.
  • FCm’s global cost management plan included a new multinational business plan with a return on investment of multinational account management fees and program savings of 1:71.

The response

“Our global cost savings plan, although quite aggressive, has reached the targets we set out to achieve at the start of the process. The successful outcome was the result of a close working partnership between Lloyd’s Register Group and FCm. Lloyd’s Register Group was open to suggestions for change and improvement and their teams worked hard to ensure they were also meeting the requirements of the cost savings plan to improve traveler buying behavior and compliance.”
Felicity Burke
FCm Travel Solutions
Global Director of Multinational
Account Management

About FCm Travel Solutions

At FCm our people are encouraged to think intuitively and expansively about the products and services they supply to your business.
 
They are actively encouraged to challenge the status quo to find innovative solutions for saving you money.
 
It’s our objective to ensure that every possible aspect of your travel booking experience is simplified and streamlined.

 

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