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Travel cost reduction strategies




travel cost reduction strategies

For example, if you budget, for sales to.10,000/- and actual sales are.8,000/-, variance analysis yields a difference.2,000/.
Sometimes travel is pushed to the bottom of the priority list primarily because of cost.Techniques of cost control Budgetary control Standard costing Inventory control Ratio analysis Variance analysis.The multiple carrier approach occurs when the transport manager has negotiated the best deal for each route, but has not looked at the big picture.With increases in the price of fuel, the proportion allocated to transportation can be upward of 50 percent.This is not always possible, but given that discounts for larger shipments are almost always available, the transportation manager should be looking at this strategy to reduce costs.By offering all transportation out to bid, via a request for"tion (.Cost Reduction Def:-The process of identifying and eliminating unnecessary costs to improve the profitability of a business is know as cost reduction.First step, contact a telecom consultant who will analyze your needs with no upfront charges.Smart planning that expands full-time or kia picanto promo part-time staff to soak up the overtime hours with straight-time wages can almost eliminate time-and-a-half pay.As carriers are offered more work, theoretically the negotiated rates should fall even more as the carrier wants to retain the routes they have and increase the volume of work they are receiving.
Consolidating Shipments, if a company uses carriers for its deliveries, the rate it pays is negotiated by trip based on weight, distance, and other variables.
For many companies, corporate travel is a necessary, and expensive, part of business life.
Delay in the issue of licenses.
Know the cost of ground transportation.
Don't get me wrong, though-reducing the amount of money flying out the door is a good strategy, and once I'm sure that slicing the fat from a budget makes sound business sense, I'll use the following checklist to start tackling costs.If it wanted to use a single source, a company would have to thoroughly evaluate a bidders ability to provide the service and whether the carrier has the stability not fall into bankruptcy within the timeline of the contract.At that rate, you're almost guaranteed to come out ahead by using your credit line.Choose hotels that include breakfast or complimentary gym access, depending on your personal needs.Instead, they take a percentage (usually 50 percent) of any savings they find; many consultants won't deal with you unless they can uncover enough savings to make it worth their time-and yours.Comstock/Stockbyte/Getty Images, by, martin Murray, updated November 24, 2018, transportation costs can be a significant part of a companys overall logistics spending.I've seen cases that resulted in labor savings of 10 to 20 percent.Causes for Variance If variance exist, their causes have to be determined for taking the corrective actions.Check the change policy.Every destination has some seasonality built into the airfares, so if you have a choice, plan your trip for the lower seasons.However, if you or your employees travel frequently, you could benefit from the services of a corporate travel agency, which can save you and your employees valuable time and possibly negotiate volume discounts on airfares, hotel stays, and car rentals.4)Appraisal and Reporting:- comparison has to be made with the predetermined targets and actual performance.




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