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Case Study

Innovation: Consolidation

Background

If there’s one thing Kärcher North America understands, it’s “clean.” As the world’s foremost supplier of commercial power cleaning equipment, they have undertaken such high-profile and high-pressure jobs as cleaning Mount Rushmore and Seattle’s Space Needle. CTM was appointed as the company’s travel management provider in 2009.

Objectives

When Kärcher acquired Colorado-based Castle Rock Industries in 2006 and sited its North American headquarters in Englewood, Colorado, they recognized a new approach to travel was necessary.

Their key objectives in consolidating their travel programs were:

  • satisfy widely differing needs of business units and divisions
  • improve service for Executive and VIP international travel
  • unify travel policy among range of acquisitions

Road Blocks

The nature of Kärcher’s unmanaged travel program presented common road blocks. These included:

  • no existing robust travel policy in place that represented all divisions – some divisions had no travel policy in place at all
  • no service benchmarking or consolidated reporting to monitor traveler satisfaction or negotiate vendor volume agreements

 

Solution

CTM immediately got to work and assigned a dedicated Account Manager to oversee the project. A detailed implementation plan was created and ensured Kärcher’s objectives were reached and exceeded in the most efficient way to deliver maximum return on investment. CTM achieved this by:

  • developing and implementing a new tailored travel policy and booking system focused on cost saving practices, including advanced booking practices and promoting preferred supplier programs
  • creating standard reporting metrics for travelers in all divisions to monitor compliance and manage preferred supplier programs
  • conducting on-site training sessions to demonstrate key traveler technology and introduce travelers to their new travel program. Using a custom-crafted communication process and traveler orientations, we achieved an immediate 83% online booking adoption.

Results

Total travel spend down by nearly $175,000

These significant cost reductions were achieved through consolidation of vendor programs and increased policy compliance, which together contributed to over $175,000 in savings for the company.

Kärcher’s travel program savings has exceeded agency service fees consistently at each strategic account review. Recently, savings was tenfold over agency service fees.

Savings totaled over 18% of total travel spend

These expense reductions were achieved through the successful deployment of a unified travel policy and vendor program management.

Online adoption exceeds 87%

Through traveler training and superior assistance, Online Booking Tool usage is consistently at this level or above.

 CTM consistently delivers on consolidation and strategy for local, national and multi-national customers. Find out how we can help your organization consolidate travel today.