Why buyer-supplier relationships are key

Follow our step-by-step guide to ensure your ideas for your company’s travel programme are heard and get the green light

Why is it I long for a cure for the travel and meetings industry? Is it truly ill and in need of medication or does my passion for success just mean I want a kick of steroids?

Either way, the intermediaries – those who seek to ply their health programmes to travel buyers – need to choose how they are to do it in the future. I personally think we are at a crossroads and there are two routes which can be taken – the 'supermarket' option or the 'pharmacist' branch.

The supermarket route potentially means consolidation, less choice, and the future expansion of individual services, but all provided by a small number of large TMCs. This approach can also lead to suppliers being more remote from the buyers, with less direct control over the value of their product.

In the short term, however, cost saving benefits are clear to the corporate and in the current business climate this approach appears to suit the buyers and TMCs. In the long term, of course, less choice can only lead to cost increases, lack of choice and competition and therefore ultimately service issues.

The pharmacist branch takes a longer term view. It accepts the need for long term sustainable partnerships that deliver value, where investment is recognised as needed to enable new services, and where systems would be available to support and lead the ever changing landscape. This is a harder model for the trad-itional buyer to have accepted within their own organisations, but could this change? Imagine a future world where the traditional TMC takes on some of the roles of the buyer for the corporate, that the trust and relationships are built to enable the free flow of information between the corporate and end supplier, where new platforms are designed to meet customers' need. The corporate can then concentrate on managing the supply chain and relationships and utilising external expertise and knowledge in an increasingly commoditised market.

In my humble opinion, or maybe it is just the procurement geek trying to get out, the pharmacist approach is the right way forward on so many levels. But how in the current tough financial environ-ment do we persuade company boards to take the longer term view? How do we stop the buyer community feeling threatened rather than empowered with a stronger focus on relationship management? How can we build the right level of trust to realise the obvious opportunities? Are TMCs going to evolve to offer the full logistic chain of services and platforms that we all need across the transport and travel spectrum?

Let’s start now on the right journey. A small but significant step forward is working with account managers – they're at the forefront of buyer-supplier relations. It’s important for them to really understand wider industry issues as well as being able to draw on specifics across their company portfolios.

I’d like to see more account management staff engaging with and learning through the ITM as part of creating a better partnership environment. The whole industry would benefit from this and it’s exactly the reason we created the new ITM member category last year. Who knows, we may just have the right prescription.

If you would like to hear more about ITM, please join the ITM Board at Chelsea FC on Tuesday 12th May 4.30-6.30pm for a presentation and informal drinks reception with myself, Caroline Strachan (immediate past chair) and Paul Tilstone, chief executive.For more information, please email diane.steed@itm.org.uk.

BACK

 

 

 

PROFILE
Jamie Hindhaugh
Head of Sourcing,
Production Resources, BBC,
And Chairman
Institute of Travel
And Meetings

Jamie is head of sourcing for production resources and head of logistics at the BBC. The latter role sees him responsible for the entire BBC transport and travel services, from the provision of ground transport and fleet services to more traditional flight, rail and hotel pro-grammes. Jamie was recently appointed chairman of the Institute of Travel & Meetings.

 
El Al