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ENERGY TRAVEL - CASE STUDY

 

Creating a consolidated global travel program for an oil and gas industry provider.

 

 

 

The challenge

National Oilwell Varco (NOV), a global equipment, components and services provider for the oil and gas industry, needed travel spend oversight, a centralized form of payment, consolidated data and traveler location visibility. Because each division handled travel independently, NOV didn’t have an overarching policy or a true measure of compliance. This not only prevented NOV from obtaining lower supplier pricing, but also meant that in the U.K. alone, it had a variety of travel policies, forms of payment, visa/passport providers and agencies/booking sources.

 

The solution

CWT Energy, Resources & Marine consolidated NOV’s travel program globally. As part of the U.K. implementation, the team scheduled regular calls with travel arrangers from each business unit. This opened lines of communication and obtained buy-in. Several solutions were implemented, including CWT Portrait, an online tool for travel profile management; an online booking tool; a consolidated business travel account; an expense management tool; CWT’s reporting tool, which provides program performance data; and CWT To GoTM, an exclusive mobile app for travelers and travel arrangers.

 

The result

NOV divisions in the U.K. now have one travel management company, one visa/passport provider and two forms of payment. The company gained two critical program components: consolidated reporting and the ability to track and locate travelers in an emergency. It also discovered it was spending 62 percent more on travel than estimated, and used this information to negotiate discounts, driving bottom-line savings of 35 percent in the first year and 39 percent in the second. Year over year, NOV reduced hotel leakage and improved compliance.

 

 

FAST FACTS

 

 

Industry: Oil and gas

Scope: United Kingdom

Volume: Global air spend: US$250M

U.K. total spend: 8.6 M pounds

 

RESULTS AT A GLANCE

  • Consolidated travel program and implemented a primary travel policy, eliminating redundancies and increasing compliance.
  • Leveraged volume data in supplier negotiations, driving savings of 39 percent in the second year.
  • Achieved travel spending visibility via consolidated reporting.
  • Improved traveler satisfaction and safety.