Sandvik

Case Studies 24 May 2017

About Sandvik Group

Sandvik made its first entry into China back in 1985. Sandvik, which is headquartered in Stockholm, Sweden, is a high-technology engineering group and a global leader in the various business sectors it is involved in. Sandvik operates all over the world and has offices in over 130 countries. In 2013, the Group had 47,000 employees and annual sales of around $87 billion SEK.

Sandvik's Travel Needs

Along with continuously rising business volume in China, Sandvik’s increasingly stricter internal travel policies has made it necessary for the company to have a professional travel management company to carry out integrated management of the travel of its more than 20 subsidiaries across the country. Sandvik requires the travel management company to carry out integrated planning and all-rounded monitoring of all travel activities while ensuring the safety and comfort of travelers. Sandvik's travel management company has to be able to assist in refining and analyzing data, developing reasonable travel policies and processes, and setting travel budgets.

FCM's Solutions

FCM assigns full-time Account Managers and service teams to provide comprehensive one-stop service to more than 20 Sandvik subsidiaries. This includes implementing Sandvik’s travel policy and fine-tuning its service and payment processes. In addition, FCM regulates and records Sandvik employees’ travel activities using its advanced information management system in order to standardize and centralize the travel management. It has helped Sandvik achieve 12% savings on its travel expenses through integration of travel services. FCM provides Sandvik with customized travel management reports. With all kinds of management data, it helps Sandvik get a full picture of its travel expenses, travel management standard, implementation of its travel policies, and results of its costsaving measures. Specifically, it provides airfare comparison analysis, seat usage percentage breakdown, analysis of employees’ purchase behavior during business trips, analysis of best international route itinerary use, etc. So far, it has helped Sandvik bring down its travel costs by 17%. FCM has recommended that Sandvik sign three-party corporate account agreements for purchasing services from travel service providers. It has managed to negotiate with service providers and get favorable prices for Sandvik based on centralized analysis of the company’s purchase of special flight route tickets in China and comparison of market prices.

Results

Six months after engaging FCM’s services, Sandvik achieved 12% overall savings on its travel costs through integrated travel services. After 12 months, the average domestic flight ticket prices and international flight ticket prices it was paying fell by 5% and 12% respectively compared to the previous year. With the signing of corporate account agreements with airlines, its travel costs have gone down by 25%. By giving its staff effective guidance on cultivating good travel reservation practices, Sandvik has saved an additional 13% on travel costs.

FCM has given us very professional recommendations and solutions on reducing our travel costs. “Thumbs up for its ability to provide one-to-one dedicated service!”