Many meeting stakeholders have a general understanding of how outsourced meeting procurement works, but there are things that can happen behind the scenes that may surprise even savvy meeting managers. I have unveiled a few of those “secrets” below to show how these activities may benefit your organization.
Before we reveal the secrets, let’s explore what we mean by “professionally managed meeting procurement.” It can easily be defined as letting someone else, such as an event management company, handle the procurement of your meeting venue. Third parties bring expertise gained from experience in various industry positions and with numerous clients to your meeting. They employ buyers who are specialists, solely dedicated to that craft.
So, without further ado, let’s dive right into the secrets of professionally managed meeting procurement!
Secret #1 — Experience
Chances are, third parties have BEEN THERE AND DONE THAT… At least, someone at their organization probably has.
You probably know that there are millions of worthwhile destinations and venues around the world. You can find them just by Googling a location. But then what?
But did you know that it takes an enormous amount of knowledge just to sift through all the possibilities to find the venue that’s right for your event? In fact, a database like Cvent, built for planners, has more than 245,000 venues!
The secret is third parties bring the cumulative knowledge of their entire team to the selection process. Chances are, someone has been to that location, even to that venue.
For example, on average corporate event teams place between 2-100 meetings a year. Whereas, the average third party books thousands of events per year. That’s a lot of knowledge and experience in one place. They have a set of tools and skills that they use to perfect their ability to easily evaluate destinations and venues. Some are external, and others are internal, such as the working with the sales team in the initial contracting process all the way though the onsite experience and billing experience. The third party knows how to communicate to deliver a mutually agreeable contract considering what matters most to the client and marrying that with understanding how those requests will be executed at the hotel level. They can bring both parties to an understanding that provides a smooth execution.
Secret #2 — Scale
IT’S ALL ABOUT THE PACKAGE. What do we mean by that? Well, it’s important to have ALL the information before deciding which venue will best suit your needs
You probably know that there are many pricing options available to host your meeting.
But did you know that there are many factors beyond room rates that can have a huge impact on the success of your meeting? How do you choose the venue that is the “best” for your meeting?
The secret is that third parties evaluate a venue based on tangible and intangible factors, such as space, rooms and quality. They also read the fine print.
For example, third parties will confirm if the venue can accommodate the needs of the program, including factors such as; will the meeting space be conducive to the meeting objectives, can the attendees easily access the venue, and will they feel well taken care of once they get there. Additionally, some intangible ways they assist is in their ability to consult and look at the entire package. Does the meeting have to take place in 1 ½ days so near the airport? Is this a group that shares rooms so are enough doubled bedded rooms available? Does the meeting need quiet or space to move? Is it more about aesthetics or function, will pillars in the middle of the meeting room hamper the attendees being able to see or hear the content? These are the things a third party can help you look for and evaluate.
Secret #3 — Diversity
Third parties SPEAK “EVENT” IN MULTIPLE LANGUAGES… and it’s more than just having translators.
You probably know that it is challenging to book a program at an international destination.
But did you know that many third parties have people on staff who not only speak the language, but also understand the business customs, terminology, common contract terms and potential risks of working pretty much anywhere in the world?
The secret is that third parties book international destinations on a regular basis, and have “boots on the ground” around the world.
For example, things are ever changing and if you have not worked in an area for several months or years you need someone who can provide you the knowledge. A new Russian law declares that all contracts must state that Russian language must prevail. A third party will have run into this situation and be able to tell you when this would apply to your event. They will be able to work with the venue to have English and Russian terms and conditions listed side-by-side to compare them.
Secret #4 — Process
They RUN A TIGHT SHIP and can help your department be more efficient as well.
You probably know that working with a procurement department includes providing a lot of details, from contract terms, to data points, to funding limits.
But did you know that good third parties keep tabs on all that critical information and can help you with that paperwork? They can also improve your relationship with your procurement department.
The secret is that third parties will not only save you money through efficiency gains, but they can also help procurement better understand what you do.
For example, a third party can evaluate your internal process and procedures using their industry and technology experience. Some third parties can share best practices to help you streamline processes to gain efficiency. They often act as a buffer between the numbers people and the meeting planner, and during that process, help procurement better understand the meetings industry.
Secret #5 — Regulations
THEY’RE A LITTLE OCD and that level of attention to detail is a good thing sometimes.
You probably know that there are regulations in certain industries that meeting planners need to know.
But did you know that these regulations are not uniform for all industries or destinations? Attention to detail can save your organization a lot of time, money and headaches
The secret is that third parties should be familiar with these regulations, so they can ensure that you’re following the laws.
For example, a third party should use a consistent sourcing approach and contract language that dovetails with your company’s compliance standards and load all critical items into the systems at the end of a meeting. This will save your compliance department time in locating documents for an audit.
Secret #6 — Negotiate
They PINCH EVERY PENNY for you.
You probably know that there are negotiable items when reviewing a hotel contract.
But do you know all the items that are negotiable, which ones bring the greatest value, and which are easier for hotels to agree to than others?
The secret is that third parties do this all day, know the hotel’s market and the pressures they’re under, often have leverage with hotels because of the number of events they book, and know how to negotiate a win-win contract for the client and the venue.
For example, a third party is able to leverage multi-year agreements to help clients realize additional savings on room rate and enhanced concession packages; package a smaller meeting with a larger one to enhance savings; stay on top of cancellations that might put a hotel in a position to be more open to negotiations; understand which concessions bring value to the client and which ones may not cost the hotel as much.
Secret #7 — Big Data
THIRD PARTIES CAN SEE THE FUTURE. How? You ask…
You probably know that BIG data is a hot topic in the meetings industry.
But did you know that data is only BIG if you know how to use it?
The secret is that third parties can help you gather data accurately to discover trends that can help you make buying and process decisions.
For example, at M&IW our business intelligence tool and data told us that larger clients with multiple procurement teams were having difficulty managing all the moving parts. To address this need, we developed a consolidated single-sourcing program that provides essential governance yet allows the flexibility of multiple sourcing providers. We also determined that small meetings often don’t have the same tools available to be as efficient and as they could be, so we’re investigating new technologies for small meetings.
To learn more on this topic, please enjoy our Industry Insights Webinar on Demand: 7 Secrets of Professionally Managed Meeting Procurement. Or, if you are interested in connecting with our procurement team regarding an upcoming program, please email firstname.lastname@example.org.