Travel and entertainment (T&E) is an area of significant spend within an enterprise.
With increase in gas prices and other expenses associated with travel, this drain on resources will continue to grow.
This trend is forcing large and small companies to devote their attention to how to best manage this category of enterprise spend.
As a global economic slowdown looms, it more important than ever to control T&E expenses, which is the top pressure identified by 54% of the enterprises for addressing T&E expense management.
According to a new study published by Aberdeen, a Harte-Hanks Company, top-performing enterprises are leveraging key technologies and services in combination with developing critical organizational capabilities and strategies to improve compliance with corporate T&E policies.
One way is to reduce travel by using Internet based services such as www.ontheribbon/isi/ to create virtual meetings using desktop services.
Another is to better manage these expenses with a closer eye to adherence to corporate guidelines.
The "T&E Expense Management" report finds that the bottom line of a company can be impacted significantly by more effectively managing T&E expenses. Improving compliance can lead directly to cost savings and also result in operational efficiencies.
Enterprises are therefore looking largely to technology to not only improve operational efficiencies, reduce costs, and drive visibility, but to also raise employee convenience and productivity.
By leveraging T&E technologies and services such as online / self booking tools, corporate cards, expense reporting management solutions, travel management companies, and travel data reporting applications, Best-in-Class enterprises have achieved outstanding results:
- An 95% compliance rate to corporate T&E policies
- 43% lower costs for processing expense reports than competitor
- Online booking costs 40% lower than all other enterprises
"By automating parts of the T&E process and using key corporate services, Best-in-Class enterprises are achieving better policy compliance and higher rates of cost savings," said Bill Browning, Research Analyst, Aberdeen.
"And while the company is realizing savings and compliance benefits, the process is also made more efficient for the business traveler, from booking through submitting expense reports and getting reimbursed," he added.
To reach the level of performance of Best-in-Class organizations for effective T&E expense management, Aberdeen recommends that enterprises undertake the following actions:
- Secure executive support for T&E initiatives
- Regularly audit T&E expenditures
- Improve utilization of corporate cards and leverage direct deposit
capabilities for reimbursement
- Provide flexibility for business travelers by providing online, on-
demand, and offline access to expense management and reporting tools
A complimentary copy of this report is made available due in part by the following underwriters: Concur, ExpenseWire, Infor, and Suntrust. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4730.
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