Challenge

The National Hockey League identified league-wide inefficiencies in team expenses and engaged business productivity consultants Bain & Company to perform an expense analysis. Bain identified insurance, energy for maintaining ice arenas and team travel as the top three expenditures — and determined that travel was the greatest efficiency opportunity.

Solution

Bain & Company selected PJS as experts to identify travel efficiencies, including:

• A strategic sourcing framework for team and league executive travel.
• A dedicated Safety Management System.
• A web-based portal allowing teams to communicate roster changes, schedule updates, meal planning, transportation needs and billing in real time.
• Contingency planning for potential delays such as inclement weather or air traffic congestion.
• A Charter Air Transportation Manual customized for the unique needs of each organization.

Result

By setting aside competitive rivalries and applying a thorough supply market analysis, participating teams saw significant travel program savings alongside increased safety, simplified ordering and better financial reporting. Looking beyond incumbent suppliers — with stringent selection criteria and supplier performance controls — produced a 20% reduction in per-hour flight costs and improved on-time performance. In the 2017-18 season, participating teams saved 31% compared to other NHL teams while enjoying a dedicated aircraft and crew at no added cost. Sharing process data across teams also brought improved communications, transparency around each team's challenges, more choices through contingency planning, and fewer surprises for travel management departments.