Nestlé yields 10% intercontinental air program savings with Advito

The company engaged Advito to transform program data into action plans to improve performance and lower air costs.

CHALLENGE

Nestlé had an abundance of data about its global air travel program, which serves about 70,000 traveling employees worldwide. The problem was that the data was compiled into quarterly reports, and was dated before the company’s travel program leader, Marc Zuber, ever saw it. And when he did receive the data, it was a mountain of numbers, charts and graphs and difficult to mine for nuggets of actionable information.

Nestlé wanted to be in the driver’s seat with its data, and it wanted consultative advice on using the information to drive performance goals. The company engaged Advito to transform program data into action plans to improve performance and lower air costs.

“We were receiving extensive and detailed air performance data, but we were lacking insights. That prevented us from identifying opportunities and taking appropriate steps in a timely manner.”
Marc Zuber, Group Procurement Manager, Travel & Event Planning, Nestlé

APPROACH

Zuber explained his goals to Advito, and the consultancy worked with him to evaluate Nestle’s approach to gathering and analyzing data. “Advito spent time with us to understand our requirements and how we wanted to use our data,” Zuber said. “They actually designed some of our available features in their new air interactive dashboard from our input. The tool allows us to manipulate visualizations and drill down to learn more however and whenever we need.”

The interactive air dashboard provides overviews and granular details. It offers pricing and market share data, as well as contractual term fulfillment—all presented in one easy-to-interpret dashboard. “That is highly useful,” Zuber noted, “because it provides us with a holistic view of our performance.”

Advito uses the dashboards to formulate consultative recommendations about what actions Zuber should take. “This is really where the value comes from,” he said. “I need to focus on what I must do to run our travel program every day. It’s important to have Advito looking at the data on my behalf, weighing our program options and making recommendations.”

“This is really where the value comes from. I need to focus on what I must do to run our travel program every day. It’s important to have Advito looking at the data on my behalf, weighing our program options and making recommendations. In addition to their expertise, innovation and technology development capabilities, Advito has shown a strong ability to engage with us as a partner who understands and addresses our needs.”
Marc Zuber, Group Procurement Manager, Travel & Event Planning, Nestlé

Results

Within 18 months of implementation, the air dashboards and consultative partnership led to changes in Nestlé’s contractual air program, resulting in a 10% reduction in overall intercontinental air costs. The changes continue to generate significant savings that are particularly remarkable for an air program as mature as Nestlé’s.

“We can now identify in a timely manner pricing gaps and savings opportunities, and immediately engage with our suppliers to address these,” Zuber says. “On some key routes, our savings has been as much as 20%.”

10% reduction

in overall intercontinental air program costs

20% savings

on some key routes

“We are in control of our data in a much more efficient way,” he says, noting that this gives Nestlé the information needed to drive negotiations with airlines—instead of the other way around.

Zuber is working with Advito to create interactive dashboards for other areas of Nestlé’s program, such as hotels. He also anticipates using the dashboards to better understand traveler behavior and promote traveler engagement.

The results convinced Zuber of the power of a data-driven, consultative approach to containing travel costs. But he believes such results can only happen when travel managers and consultants form true partnerships, as Nestlé has done with Advito. “You can work with consultants, but if you do not provide clear objectives and define what you want to accomplish, you will not get the best value. It’s about a partnership.

“We would definitely recommend Advito,” Zuber said. “In addition to their expertise, innovation and technology development capabilities, Advito has shown a strong ability to engage with us as a partner who understands and addresses our needs. They have been a great support to the advancement of our air program.”

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