Royal FrieslandCampina

Download PDF of Case Study

Using tailored travel management strategies, FCm Malaysia helped Royal FrieslandCampina DOMO to significantly reduce its air and hotel expenditure. The results have positively impacted the company's bottom line without affecting the quality or quantity of Royal FrieslandCampina DOMO's world-wide service or output.

Here's how we made it possible...

The challenges

Royal FrieslandCampina DOMO's main objective was to reduce its travel expenses without affecting its overall business objectives. During the Global Financial Crisis Royal FrieslandCampina DOMO needed to reassess its travel program to ensure the company was achieving maximum value from its spend across every travel sector. Although the company was keen to minimise costs, it was important Royal FrieslandCampina DOMO could continue to provide a quality service to its worldwide customers.

The main areas of travel spend Royal FrieslandCampina DOMO wanted to focus on was air travel and accommodation. Most of the company's travel involves international air travel and accommodation, with Amsterdam one of the key business hubs for the company.

The solutions

FCm Malaysia worked closely with Royal FrieslandCampina DOMO to assess its travel patterns, buying behaviour and existing travel program to identify what travel management strategies would achieve their financial and business objectives. As part of this, FCm conducted a series of discussions with the company's procurement department to establish a 'direct savings' business plan.

FCm used management information reporting to review Royal FrieslandCampina DOMO's travel patterns. This involved an in-depth investigation into what the highest capacity international and domestic air routes were for the company, which hotels travellers were staying in as well as which suppliers the company had established relationships with. Using this information, FCm then made a number of recommendations to Royal FrieslandCampina DOMO and negotiated on behalf of the company with its preferred airlines to gain a competitive corporate fare for them. FCm increased the company's overall savings by reviewing, streamlining and then finally consolidating the company's accommodation program to maximise volume with preferred hotel suppliers to garner a better corporate room rate.

Best possible outcomes

So far, FCm has saved Royal FrieslandCampina DOMO more than five per cent of its total spend on air by successfully negotiating a more competitive fare from the company's preferred airlines. The company has also saved five per cent of its total spend on accommodation through consolidation with their preferred hotel supplier. During the next 12 months FCm expect to be able to deliver projected annual savings of between eight and 10 per cent of the company's overall spend on travel.

The excellent results have given Royal FrieslandCampina DOMO the confidence that FCm has successfully targeted and reformed the areas within its travel program that could deliver maximum savings. Throughout the process FCm's ability to identify where changes needed to be made and monitored, enabled Royal FrieslandCampina DOMO to improve its bottom line without affecting its overall commercial output. FCm provided Royal FrieslandCampina DOMO with clear, fast and effective solutions that delivered immediate and positive financial gains for the company.