In today's fast-paced business world, mobility has become a vital aspect of companies' operations. From employee business travel to fleet management, mobility plays a crucial role in ensuring smooth operations. However, with the increasing complexity and costs associated with mobility, organisations are looking for effective ways to manage and optimise their mobility expenses.
Understanding mobility expense management
Mobility expense management refers to the strategies and processes employed by organisations to track, monitor, and optimise their mobility-related costs. This includes various aspects such as managing employee travel expenses, fleet management expenses, and optimising overall travel and mobility operations.
The rising need for mobility expense management
With the globalisation of businesses and the expansion of multinational companies, the need for effective mobility expense management is on the rise. According to a report by Exactitude Consultancy, the global mobility as a service market is expected to reach USD 10.851 billion by 2028, with a compound annual growth rate (CAGR) of 18% from 2019 to 2028. This highlights the growing importance of managing mobility expenses effectively.
Challenges in mobility expense management
Managing mobility expenses can be a complex task, given the diverse nature of business travel and mobility operations. Some of the challenges organisations face include:
Lack of visibility and control: With multiple departments and employees involved in mobility operations, companies often struggle to have a consolidated view of their mobility expenses. This can lead to overspending, inefficient budget allocation, and difficulties in monitoring costs.
Manual and time-consuming processes: Traditional approaches to mobility expense management, which rely on manual processes and spreadsheets, can be time-consuming and error-prone. This not only leads to inefficiencies, but also increases the risk of non-compliance with travel and expense policies.
Lack of integration: Inefficient integration between various mobility management systems and tools often leads to data silos and fragmented information. This further complicates the process of tracking and analysing mobility-related expenses.
Mobility as a Service (MaaS) - An emerging paradigm
One emerging trend in the mobility industry is the concept of Mobility as a Service (MaaS). MaaS refers to the integration of various transportation services - such as public transport, trains and micro-mobility options - into a single platform, allowing users to plan, book, and pay for their entire journey using a single application. Companies like Tranzer offer MaaS solutions in Europe, providing users with seamless transportation options and simplifying the way people plan and pay for their business travel.
By leveraging MaaS platforms, companies at large can gain greater control and visibility over their mobility expenses. These platforms provide a centralised hub where companies can manage travel, track costs, and optimise their mobility operations.
Companies like TravelPerk, BCD Travel and Egencia offer travel management solutions that are compatible with expense solutions such as Mobilexpense, streamlining the entire travel process for travellers as well as managers and financial controllers. These platforms provide employees with access to a wide range of travel options and help organisations track and manage travel expenses more efficiently.
Benefits of effective mobility expense management
Implementing effective mobility expense management strategies can bring several benefits to organisations, including:
Cost savings: By gaining visibility and control over mobility expenses, organisations can identify areas of inefficiency and implement cost-saving measures or negotiate better deals. This can lead to significant savings in travel and mobility-related costs.
Improved compliance: With a comprehensive travel and expense management system in place, organisations can ensure compliance with travel policies and regulations. This helps avoid potential penalties and non-compliance risks, as well as reducing unnecessary cash-out for non-compliant (or fraudulent) claims.
Enhanced productivity and efficiency: By automating manual processes and streamlining mobility operations, organisations can enhance productivity and efficiency. Employees can focus on their core tasks instead of spending time on administrative tasks related to travel and expense management.
Better decision-making: With accurate and real-time data on mobility expenses, organisations can make informed decisions regarding budget allocation, supplier negotiations, and travel policy improvements.
In an increasingly interconnected and mobile business landscape, effective management of mobility expenses is crucial for organisations to stay competitive. By implementing robust mobility expense management strategies and leveraging technologies like MaaS and travel and expense management systems, companies can streamline costs, enhance efficiency, and ensure compliance.
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