Several multinational corporations are taking stock of their events procurement, as directed by their headquarters in the US and Europe in the aftermath of the 2008 financial crisis. Yet some others, and suppliers, are still ignorant about strategic meetings management (SMM), and what such programmes entails.
International consultancy for corporate events Grass Roots says SMM offers multiple benefits to event organisers and suppliers/ service partners – without diminishing choice or relationships, as often feared. Lisa Hopkins, general manager, venue sourcing and events, Asia Pacific, says: “SMM programmes support company objectives around cost-saving measures and processes, while offering a time-saving result. It enables a view of total meeting spend, allowing organisations to use the information in a more strategic way.”
Resource use
Advocates of SMM programmes point to better use of time and financial resources; consolidating and leveraging negotiated rates; mitigating risks and improved management and control of expenditure. Savings from SMM programmes range between 10 and 20 per cent. Surveys show that venue sourcing takes up to 50 per cent of time allocated to an individual event. About half of meeting expenditure is on the venue and associated services. But not all corporate end-users or suppliers are convinced.
In Asia, most meeting planners book venues and ancillary services directly. An event organiser says relationships often count more than contract rates and Western “best practice” concepts. “Sales and marketing, HR and executive secretaries may grumble about having to organise regional meetings or training, but many actually enjoy the influence and privileges accorded and resent SMM encroaching on their area,” Hopkins says.
SMM consultancies, event management companies and hotels that CEI Asia spoke to say SMM is most common among pharmaceutical, IT and financial services companies, with energy and professional services showing interest too. These global companies usually have regional head offices in Singapore or Hong Kong.
Venue programme
Both Merck and Oracle have already begun realigning transient corporate travel and meetings and events procurement. This year, KPMG initiated a preferred venue programme through Grass Roots.
David Goh, managing director for MCI (Singapore), notes that SMM programmes need to be carefully adapted before roll-out around the world. “In SMM, one size does not fit all. Embracing the concept in Asia Pacific is fairly fragmented among ‘practitioners’. The concept is embraced, but not always enforced, by local offices due to governance differences.”
Regional DMC Destination Asia is also in the SMM programme loop. Meilin Tay, general manager, Destination Asia (Singapore), says: “We have been fortunate to secure several corporate businesses that had started on SMM and our task is to continue with it. However, for some clients, we are now involved in the implementation process of SMM.”
Hotels are among the biggest gainers, especially global chains. However, while there are cost advantages in streamlining purchases at the group or regional level, hoteliers say that corporate negotiated rates do not apply to MICE bookings since these segments are treated differently.
Global partners
Sebastian Tan, director, regional sales Southeast Asia for the InterContinental Hotels Group, says: “Global companies tend to consider their global hotel partners first because of confidence in the brand, relationships and past experiences. “Exceptions could be when the incumbent can’t support the scale of the event, or when a new and interesting facility is available at the destination.”
IHG is seeing a growing trend in SMM, especially since the launch of its InterContinental Meetings programme in mid-2010. Yet for all the strategic considerations, SMM consultants recognise that events are very tactical and personal by nature. “But that does not mean you cannot apply procurement practices to support the organisation in achieving its specific goals,” says Hopkins.