A PESTLE analysis is a useful way for travel managers and buyers to shape their strategy, according to the best practice director for the Royal Mail’s group procurement department, Corin McGrath.
Speaking at the ACTE Executive Forum in London, he suggested buyers analyse key influences on potential suppliers in terms of six key areas: political, economic, social, technological, legal and environmental (PESTLE).
A method of auditing what influences an organisation to aid strategic decision making, he suggested it as one of the ways that procurement executives can learn from travel, and vice versa. McGrath said this would help buyers to better understand the business environment they’re working in.
Alan Ryan, regional travel manager at SITA Aero, was one of the delegates at the event, and took part in a round-table PESTLE analysis of airfares. He said it was important to try and minimise surprises, and said analysis tools such as PESTLE can help “really highlight some of the things that may happen in the future for us”.
He said: “If the CFO suddenly asks: 'Why has my air fare gone up?', we can answer that. We can also have some background information to say these are the factors that are influencing this – the price of oil has gone up, or whatever it is.”
PESTLE can be used to understand the current environment, in order to be able to shape a travel strategy and work out how it can be communicated with stakeholders.
“That’s the main purpose of it – the more you can focus on this type of thing, the more you control the process, and the more you can communicate and be seen as a strategic advisor,” said McGrath.