One Company's Approach to DMCs
Approach to DMCs Sometimes, strategic sourcing of vendors beyond hotels and airlines is not necessary, which was what PricewaterhouseCoopers learned. The company went through a Six Sigma process from 2006 to 2008 as part of its continual evaluation of its SMM program, and today the evolution continues with the professional services firm exploring new areas of spend to strategically manage, according to Karin Milliman, CMM, meeting & event services strategy & implementation director.
Milliman says her team evaluated the cost/benefit of leveraging spend with DMCs but found that strategically sourcing them didn’t make sense. “We found that there weren’t many DMCs who had a presence in multiple cities, and since we don’t
use DMCs frequently, we didn’t have the purchasing volume that would make it worthwhile,” she says. “But it might make sense to revisit this
as more DMCs offer nationwide
As for ground transportation at meetings, “We typically do a master services agreement for transient ground providers. We have two national preferred vendors, and for meetings, we get a bid from them as well as from a local company.”
The RFP process can be time consuming, she says (see box). “A lot goes into the process internally, and you want to make sure it is worth the time and effort on the front end,” Milliman says. “You want to do your due diligence and conduct an RFP when the purchasing volume reaches a point that it makes sense for your organization.”