2016 Procurement Trends Survey

Recently, Successful Meetings sent a survey out to our readership asking them about the procurement strategies their organizations have in place. Of the respondents 66 percent were corporate planners, 27 percent worked for associations, and seven percent were independent or third party planners. Of that number, 64 percent reported the procurement departments in their organizations had some involvement in the planning of their meetings. Here's what else they had to say.

What will your organization's estimated meetings spend be for 2016?

More than $50M: 5%
$20M - $50M: 6%
$10M - $19M: 5%
$6M - $9M: 2%    
$1M - $5M: 27%
$500,000 - $999,999: 14%
$250,000 - $499,999    : 19%
Less than $250,000: 22%

How does your organization manage its meetings spend?
      
Through an internal meetings manager: 47%    
Through an internal meetings department: 21%    
Through an internal corporate travel procurement department: 19%    
Outsourced to a third party meeting planning company: 14%    
Outsourced to a third party corporate travel procurement department: 0%    

If your organization has an internal procurement department, how involved is it in managing your meetings spend?

Not involved: 36%    
Somewhat involved: 32%
Very involved: 32%

What meetings procurement practices does your organization have in place?

Limits contract signing authority: 64%    
Requires use of onsite meeting space when feasible: 54%
Requires standard payment process: 51%    
Requires senior-level approval of individual meetings: 47%    
Requires the use of designated meeting planner: 39%    
Requires use of standard RFP: 38%
Pre-negotiated meetings facility contracts: 37%    
Requires use of preferred meeting suppliers: 33%    
Requires facility sourcing by procurement/mtgs./travel dept.: 31%
Requires at least three bids for any contract: 25%    
Pre-negotiated ancillary charges for meetings: 18%    
Requires use of videoconferencing when applicable: 16%    
Requires use of preferred transient suppliers: 13%

What meetings expense items does your organization consolidate for procurement purposes?

Hotel accommodations: 75%    
Site selection costs: 46%
Food and beverage: 64%    
Meeting space/facility rental: 62%    
Audiovisual services: 56%    
Airfare:  53%    
Ground transportation: 42%    
Speakers: 36%    
Event Promotion/marketing: 34%    
Event production: 33%    

What are the benefits from consolidating the purchasing of meetings expense items?
  
Budgetary control: 80%    
Leveraging volume with suppliers: 44%
Improved quality: 42%    
Reduced liability: 29%    
Sourcing documentation: 25%    
Reduced headcount: 5%