As businesses continue to grow and evolve in today's fast-paced world, it's crucial for companies to stay on top of their expenses. One area that often gets overlooked is meeting expenses, and procurement teams need to pay closer attention to it.
In this blog post, we'll dive into why procurement needs to take a closer look at meeting expenses and what steps can be taken to optimize this area.
Meetings are an essential part of doing business. They allow for collaboration, idea-sharing, and decision-making. However, they can also be a significant expense. From travel costs to lodging and meals, meeting expenses can quickly add up. According to a study by Oxford Economics, businesses spend an average of $1,343 per employee per year on business travel expenses alone.
According to an Expert Markets report, the average cost of a domestic business trip in the United States is $990, with the average for an international trip coming in at a sizeable $2,525. When you consider the number of employees and the frequency of meetings, it's clear that managing meeting expenses is crucial to a company's bottom line.
By taking a closer look at meeting expenses, procurement teams can identify areas for optimization and cost savings. For example, by negotiating hotel rates or using virtual meetings instead of in-person ones, companies can reduce their expenses significantly. Additionally, by using technology tools such as meeting planning software, companies can track expenses more efficiently, identify budget friendly destinations, and allocate funds more effectively.
Establish clear guidelines for what expenses are covered by the company, what the spending limits are, and what the approval process is for reimbursement.
Negotiate hotel rates, transportation costs, and other expenses with vendors to get the best deals. Use a centralized platform to ensure that everyone planning meetings is aware of this negotiated rates.
With advancements in technology, virtual meetings are becoming more popular and can be an effective way to save on travel expenses. If you are committed to an in-person meeting, offer a hybrid option to ensure everyone is included.
Use meeting management software to simplify the planning and execution of meetings, as it automates many of the time-consuming tasks involved in deciding where to meet, coordinating schedules, arranging travel and accommodations, and managing expenses. This not only saves time but also reduces the risk of errors and oversights, leading to more productive and cost-effective meetings.
Managing meeting expenses is crucial to a company's bottom line. By taking a closer look at meeting expenses and implementing meeting planning software, companies can save money and allocate funds more effectively.