Travel Management Software Category Procurement Intelligence Report

End User Software and Hardware market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Travel Management Software procurement and the cost they have to incur. Buyers are showing an inclination to onboard suppliers whose offerings span beyond Travel Management Software. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

Global market is facing a shortage of professionals with requisite skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyer's procurement cost.

The supply market has undergone several structural changes including introduction of several new vendors every year, M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers that offer a solution with better fitment or a wider range of offerings in .

The report discusses in detail the best practices that have served well the category managers responsible for Travel Management Software procurement.

For example, Buyers must clearly define clauses pertaining to the ownership of subcontracting services that are not a part of preferred suppliers' portfolios. Subcontractors should be bound by the same terms and conditions as the main contractor to ensure consistency in quality and manage any adverse event such as data breach.

Prior to the commencement of contract-related discussions, buyers must ensure that they have clearly identified and listed down potential levers, such as duration of contract, resources required, space limits if relevant, terms of payment, expected resolution time, delivery point.

Transferring to a new supplier can be often costly and can further get exacerbated by instances of vendor lock-ins. Buyers must scrutinize the offerings of service providers for any possibilities of vendor lock-ins and demand client testimonials from service providers to assess such possibilities. Watch out for products/services that are priced excessively low, as they can often result in costly lock-ins.

Travel Management Software procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Travel Management Software procurement. Some examples include: