Optimize All Sources of Spend Through TCO-TMPE®
Deploy TCG’s approach to identify and manage your company’s true end-to-end travel-related costs
What is TCO-TMPE®?
TCG’s patented TCO-TMPE® approach – Total Cost of Ownership for Travel, Meetings, Payment & Expense – for program strategy and management ensures scalable alignment to broader company strategic imperatives. Operationally, it enables increased spending under management; capturing all sources of program cost and yielding scalable savings and revenue opportunities.
Progression of TCO-TMPE®
Starting Point
The start of TCO (Total Cost of Ownership) began predominantly in the IT sector during the mid-1980s.
Procurement Engagement
Increased adoption of TCO for the procurement sector extends with direct spend followed by some indirect spend categories to measure year-over-year total costs.
Realization for T&E
With increasing travel program maturity and stagnation, TCG brings to market TCO-TMPE® in 2017, expanding on the TCO concept for Travel, Meetings, Payment & Expense (TMPE) programs. TCG’s TCO-TMPE® methodology now consists of 18 cost components.
Focused on TCO
We challenge and lead travel, meeting, payment and expense programs in all business verticals.
Optimizing TMPE Programs
TCG research confirms an average of 1.62%* of the total revenue compensation range (0.33-14.4%) is spent on T&E expenses. T&E is the second largest indirect procurement expense.
Many organizations have implemented and benefitted from TCG’s patented TCO-TMPE® (Total Cost of Ownership for Travel, Meetings, Paymet, and Expense) methodology revealing TCO-related costs by an average of 18%. Through this approach, organizations can accurately capture all T&E-related spending under management, harness new revenue sources (card/payment/supplier revenue sharing), and reduce hidden company costs via the identification of more efficient workflows, processes, and addressing areas of stagnation. This also drives a higher NPS program score.
The hidden expenditures often fall within budgets not traditionally controlled by T&E owners. On average, 14% of a travel program’s TCO is hidden and can range from 8% to 23% of TCO. In some cases, this number is even higher. It is important to note that not all costs are “bad” costs – although the TCG methodology can uncover hidden costs for additional savings, companies are applying our methodology to identify all sources of cost to increase spending under management to re-distribute those savings into areas where the company needs it most.
*TCG Client Survey from 2015-2020
Indicators to Adopt TCO-TMPE® for Your Organization
- Your travel program has reached maturity (or stagnation) based on traditional levers
- Program initiatives require increased ROI and performance-based outcome metrics
- Travel, Meetings, Payment and Expense (TMPE) programs remain siloed
- You need more visibility in all sources of company and Employee Initiated Spend (E.I.S)
- You’re looking to further eliminate manual processes and automate (where feasible)
- You are looking to align your TMPE program with company imperative
- Program bypass greater than 6%