1. Standardisation: it’s coming…. are you ready?
International Congress and Convention Association
Standardisation: it’s coming…. are you ready?
Birgit Roeterdink, Organon,
the Netherlands
Steve MacKenzie, Ungerboeck Systems International, USA
44th ICCA Congress & Exhibition,
6-9 November 2005, Montevideo
11/22/2018
B. Roeterdink
iccaworld.com

2. The changing face of the industry
Montevideo, November 2005

3. NV Organon Three years ago start with global procurement
Category management travel&meetings
No global data
Meetings spend huge part of total T&E spend
Streamlining of processes – centralization
Consolidation of suppliers – local/global
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B. Roeterdink

4. Topics Changing market Stricter regulatory environments
Reduction meeting spend
Involvement of procurement
Merger between travel and meeting management
Technology developments
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B. Roeterdink

5. Changing market Globalization companies both providers and corporate
Global approach to meetings management
Global directives and policies
Supplier networks
Large agencies leading in technology
Slow economic growth
Reduce spend
Productivity improvement
Outside consultants identify huge cost savings
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B. Roeterdink

6. Stricter regulatory environments
Medical meetings
Sarbanes Oxley
Standardisation
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B. Roeterdink

7. Reduce meeting spend Meeting spend huge part of total t&e spend
More control on spend
Centralizing meetings and spend
Implementation tools
Involvement of procurement
Already involved in travel
Procurement sessions at conferences
Teaming of procurement and meetings associations
MPI white paper
Meeting spend
T&E third controllable cost. Meetings spend up to 50% of total spend T&E
Control
Not only participant satisfaction but also costs become important
Involvement of procurement
Leveraging corporate spending costs in a variety of different categories
In the UK Meetings Association and the Chartered Institute of Purchasing &Supply are publishin co-branded guidelines for best practices and starting a focus group to identify key area’s of contention and misunderstanding and joint educationals
White papers of MPI on procurement
11/22/2018
B. Roeterdink

8. Procurement They are going to stay whether you like it or not
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B. Roeterdink

9. Focus of procurement Reduction of spend Data aggregation
Strategic sourcing / buying
Improved contracting
Automated RFP’s
Consolidation – preferred suppliers
Lowest price available – meetings are a commodity
Data aggregation
Tracking of total spend
Analysis
E- procurement
Strategic sourcing
Find the right mix between in house resources and outside suppliers that proves the best value for money
Strategic partners are becoming more important, so less suppliers with more turnover, and managing it
To meet internal stakeholders objectives at the lowest possible cost
Strategic sourcing is not done at the expense of service and quality, versus ad hoc buying of meetings
Improved contracting
Templates
Consolidation
Less suppliers with more turnover. Managing suppliers
Meetings spend is decentralized, Each meeting planner works for his/her own
centralizing meetings either in one department or one tool
Eliminate silo mentality
Lowest price
Difference between meetings services and procurement
Data aggregation
Tracking of total spend, meetings spend is fragmented
Analysis
Compliance checking
Before changes are made analysis are made - ROI, reports are asked on a regular basis,
E procurement
Links to financial departments, ERP systems
Cost control, total spend, measuring cost avoidance, cost savings
Entreprise wide efficiencies
Improved workflow – pre approval and budgetting
11/22/2018
B. Roeterdink

10. Focus of procurement Outsourcing Policies and compliance
Meetings not core business
Decentralized
Policies and compliance
Purchasing skills
Negotiation
E-auctions
Merger of travel and meetings buying power
Outsourcing
Meetings become commodities, operations not see as core business, services can be outsourced
Outsourcing is not always the best answer
Policies and compliance
Policies are being introduced and through the data compliance checking, e- procurement
Purchasing skills
Higher negotiations skills, e-auctions
11/22/2018
B. Roeterdink

11. Merger of travel and meetings management
Leverage of spend
One contact for suppliers
Alignment of policies and procedures
Cost effective
Alignment of processes
Decrease operational costs
One department/one company
Large suppliers offer both services
Travel managers are better organized
Alignment of processes
Tools
Decrease operational costs
Reduction of FTE’s
Travel managers are better organized
More experience in outsourcing, global contracting, IT developments
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B. Roeterdink

12. Technology developments
Meeting management tools
Internet
E-procurement
Meeting management tools
Needed for data collection, process improvement
Automated RFP’s
Visibility of data for leverage: synergies/cost avoidance/risk management
More and more standardisation local/global
Internet
Direct booking tools influence booking process
E-procurement
Link with ERP systems
Drives standardize processes and best practices
Enteprise wide efficiencies
Improved work flow – pre approval and budgeting
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B. Roeterdink

13. Conclusions More strategic partnerships
Internally/cross functionally/externally
Optimize partnership with procurement
Both planners and suppliers
Educate each other
Optimize partnership with travel
Embrace synergies between travel and meetings
Find ways of leveraging spend
Common policies
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B. Roeterdink

14. Conclusions Data management Compliance checking Adapt strategies
Total cost of ownership
Suppliers should understand the changes
Data management
Compliance checking, adapt strategies. Improved contracting, ROI
Strategic partnerships
Also externally from meeting services provider to long term strategic partner
VCM
Total cost of owner ship.
11/22/2018
B. Roeterdink

15. Thank you! Standardisation: it’s coming…. are you ready?
International Congress and Convention Association
Thank you!
Standardisation: it’s coming….
are you ready?
44th ICCA Congress & Exhibition,
6-9 November 2005
11/22/2018
B. Roeterdink
iccaworld.com