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Advancing Your SMMP - Globally


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Session: Advancing Your SMMP - Globally
Presented by: Kevin Iwamoto , Vice President, Industry Strategy, ACTIVE Network Business Solutions and Susan Dupart , Senior Director, Global Travel, Meetings, Corporate Card & Mobility, McAfee Corporate Event Planners
Date and time: Tuesday, June 25, 2013, 3pm

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Advancing Your SMMP - Globally

  1. 1. SMMP IndustryUpdates &McAfee Case StudyKevin Iwamoto, GLP & GTPVP Industry StrategyACTIVE Network, Business SolutionsSusan Dupart, Senior Director,GlobalTravel, Meetings, Corporate Card & MobilityMcAfee
  2. 2. THE Meetings industry: A BIGINDIRECT SPEND CATEGORY• 48% of corporate T&E and meeting pros say theirfirms’ procurement departments are involved inmeeting management.• Corporate Meetings & Event industry wasapproximately $360 billion in 2010• Meetings represent 9% of the averageorganization’s total budget• 36% of companies have strategic meetingsmanagementprograms in the US.1-Business Travel News, the "2012 Strategic Meetings Management Study," 2 - CWT Travel Management Institute 2010, 3- Strategic Meetings Management: A Handbook of Emerging Strategies for the Next Generation of Meetings and EventsManagement, Aberdeen Group 2012, 4 - 1-Business Travel News, the "2012 Strategic Meetings Management Study
  3. 3. Challenge: RisingTravel Prices WorldwideSource: CarlsonWagonlit BusinessTravelForecast
  4. 4. NorthAmerica4% rise in avg.meeting size6.5% hike inper-day attendee cost.Challenge: Uneven Global Meetings Forecast3% decline in avg.meeting size6% drop in per-dayattendee cost.EMEASource: Carlson Wagonlit Business Travel Forecast
  5. 5. Strategic Meetings Managementpolicy processcontrol peopleStrategic Meetings Management (SMM) is a disciplined approach to managingenterprise wide meeting and event activities, processes, suppliers and data.
  6. 6. 2525SMMP – Registration/Approval of MeetingSupplier advantages: Highly qualifiedmeeting proposalsCorporate gains: Company-widevisibility via centralcalendar Annual savings rangingfrom 1.6% - 3.9% Approval workflowaudit trail (i.e. SOX) Annual savings rangingfrom 1.2% - 2.8%
  7. 7. Supplier advantages: Automated lead response Leads reach right person Integration with CRM system Preferred supplier programsCorporate gains: Driving preferred supplierusage Improved leverage from totalspend accuracy fornegotiating rates Annual savings ranging from8.6% - 13.8%25SMMP – Sourcing / Procurement
  8. 8. Supplier advantages: Automated room listsCorporate gains: Quality of event Improved marketing ofevent and sessions Automation of manymanual tasks Annual savings rangingfrom 1.1% - 3.2%25SMMP – Planning / Execution
  9. 9. 25SMMP – Payment / Expense ReconciliationSupplier advantages: Fast payment Reduction in billingand invoicing costsCorporate gains: Integration to financialsystems Separate real timemeetings and T&Espend analysis Annual savings rangingfrom 0.3% - 1.1%
  10. 10. Components of Meeting CardProgram One card issued per meeting Declining balance card or monthly card limits can be set based onestimates of the highest expected amount of monthly charges Can be used to pay all suppliers, including hotels, groundtransportation, signage, restaurants, on-site fees, etc. Can be opened early to pay for deposits and closed after all eventinvoices have been paid Transactions can be reviewed and approved on-line within three days Transactions can be reallocated to other cost centers within the samecountry AP pays the card balance directly and internally bills designated costcenter.
  11. 11. Payment Method ComparisonGlobal Meeting Card Program Global Purchase OrderCan be opened and ready to acceptcharges within 7-10 daysStandard payment terms for payingsuppliers is 45 daysOne meeting card can pay manydifferent vendorsTraditional PO process requiresseparate PO be opened for eachvendorNo minimum transaction amount Minimum PO transaction amountReduces number of payments APprocesses—one payment to cardcompany per month for alltransactionsAP processes separate payments foreach vendorSuppliers who accept corporate cardwill already be set up in paymentsystemSupplier must register and submit taxdocuments in order to be added tocompany’s payment systemReduced internal processes Multiple approvals required
  12. 12. Payment Method Comparisons - cont.Global Meeting Card Program Global Corporate Purchasing CardCan be used for traditional meetingvendors such as entertainments,florists, etc.Many traditional meeting vendors areblocked on individual CPC cardsLimits are determined by eachmeeting’s unique budgetIndividual CPC cards may not have ahigh enough limit for traditionalmeeting expenses
  13. 13. 25SMMP – Global Data Analysis / ReportingSupplier advantages: Evaluate market share Compete and optimizelead managementCorporate gains: Central reportingdatabase anddashboards Real time enterprise-wide accuracy Annual savings rangingfrom 0.5% - 1.3%
  14. 14. Technology connects all the puzzle pieces: AutomationDelivers efficienciesDrives common standards SourcingMature, consolidated marketplaceAutomates processesCentralizes data VisibilityImproves visibility to meeting activityReduces/eliminates paperwork ComplianceSupports/enables pre approvalReporting capabilities from the meetinglevel to the enterprise level25SMMP – GlobalTechnology
  15. 15. Central Resource – BetterVisibility• Start with “Sourcing Only” option – full service would beavailable• Employee owns meeting content and management ofprogram• Visibility to cancelled programs and cancellation penalties• Centralization provides ability to re-use cancelled space• Cancellation of 2 programs within two weeks = $46K• Global Advisory Council• PM Leadership Offsite• Global Master Calendar• Provides pipeline visibility into future meetings and events to ensure no overlap• Proactive vs. reactive for strategic decisions (cost reductions)• Provides visibility to global events (APAC & EMEA Kickoff)
  16. 16. How did McAfee Succeed?Creation of Global Governance Team• Executive Finance VP’s from all Geo’s• Meet quarterly to propose new initiatives• Global Travel Dashboard• Pulls travel data from AX, expense reports, SAP, Hyperion, providingbetter travel data• SMMP• Identified cost savings, better global visibility• Definition of “Meeting”• Creation of Global Meeting Policy with approval guidelineswhile ensuring cultural/Geo specific’s• Creation of meeting contract template to ensure McAfeerequired T&C’s are included prior to final negotiations• Develop easier payment vehicle, reducing Sourcing and APprocessing time• Phased rollout plan
  17. 17. Why Is McAfee Going Global?• Increased spend on Meeting Card provides increased Geospecific rebates based on new global card contract• Corporate move to provide structure to programs to make them“global” while supporting cultural differences• Centralized data provides better compliance to RiskManagement, Legal, Regulatory and Financial compliance• Global calendar for visibility of meetings/events• Eliminates conflict of dates for important global meetings• Provides visibility should need arise to cancel meetings for costcontainment
  18. 18. Questions?