What Energy & Utility Companies Are Getting Wrong About T&E Management — And How Digital Transformation Can Help

Here's a startling fact: 72% of energy and utility companies still rely on manual processes for travel and expense (T&E) management. In an industry where operational precision and regulatory compliance are fundamental, this traditional approach presents substantial risks and inefficiencies.

For many energy and utility companies, the challenges are clear: field service teams spend excessive time logging expenses, FERC compliance requires meticulous documentation, and manual processes create operational bottlenecks. These inefficiencies not only impact productivity but also increase compliance risks and reduce visibility into organizational spending.

As the industry evolves, digital transformation of T&E management has become a strategic imperative. This article explores how effective change management can help energy and utility companies successfully implement modern T&E solutions while maintaining operational stability. By focusing on both technological advancement and organizational adaptation, companies can enhance operational efficiency, improve employee experience, and ensure sustained compliance.

The Complexity of T&E Management in Energy and Utilities

The energy and utilities sector faces distinct operational challenges in T&E management that set it apart from other industries. With field teams dispersed across wide service territories and projects spanning multiple locations, organizations must navigate a complex landscape of expense tracking, regulatory requirements, and operational demands.

Three critical challenges define T&E management in the energy and utilities sector:

• Complex Expense Ecosystem: The industry's unique operational structure generates a diverse array of expenses—from daily field service charges and equipment maintenance costs to large-scale project expenditures. Each category requires specific tracking, allocation, and approval processes to ensure accurate financial management.
• Regulatory Compliance Imperatives: Federal Energy Regulatory Commission (FERC) requirements mandate precise accounting and reporting standards for energy and utility companies. This regulatory framework necessitates meticulous expense categorization and documentation, making compliance a fundamental aspect of T&E management.
• Operational Efficiency Barriers: Traditional manual processes create significant inefficiencies in expense tracking and reimbursement workflows. These inefficiencies not only impact productivity but also increase the risk of errors that can affect both financial accuracy and regulatory compliance.

Modern T&E solutions designed specifically for the energy and utilities sector address these challenges by providing comprehensive visibility into organizational spend. Through automated workflows and intelligent expense categorization, these systems enable precise cost control while ensuring regulatory compliance—all within a unified platform that adapts to the industry's unique requirements.

Wakefield 2024 Report

The future of T&E management in energy and utilities starts with the right technology. Get your copy of the Wakefield 2024 Report to learn how leading energy and utility companies are leveraging technology to meet compliance standards and sustainability goals

Download the report here

The Role of Digital Transformation in T&E for Energy and Utilities

A significant shift is underway in how energy and utility companies approach T&E management. According to recent industry research, 45% of sector leaders are prioritizing advanced T&E solutions to address evolving regulatory requirements, while 41% are focusing on supporting sustainability initiatives. This dual focus reflects the industry's broader transformation toward digital solutions that can support both compliance and environmental goals.

The impact of digital transformation in T&E management is compelling:

• 54% reduction in travel booking time
• 43% improvement in expense report processing
• 50% acceleration in reimbursement cycles

Yet despite these documented benefits, 72% of energy and utility companies still rely on manual processes, including paper invoice entry and manual data scanning. This disconnect between potential and practice represents a significant opportunity for operational improvement.

Modern T&E solutions address these challenges through several key capabilities:

• Process Automation: Advanced systems streamline expense tracking, payment processing, and approval workflows, significantly reducing administrative burden
• Enhanced Compliance: Automated controls and real-time monitoring help ensure adherence to FERC requirements while supporting ESG reporting needs
• Financial Intelligence: Integrated analytics provide leadership with actionable insights into spending patterns, enabling better budget management and cost control
• System Integration: Seamless connection with existing financial systems ensures consistent data flow and reduces manual intervention
• Sustainability Support: Digital workflows reduce paper usage while providing the detailed tracking needed for environmental impact reporting

For energy and utility companies transitioning to renewable energy and distributed resources, these capabilities become even more critical. A modern T&E platform serves as both an operational efficiency tool and a strategic asset, helping organizations:

• Track and allocate costs with precision
• Generate real-time compliance reports
• Identify cost-saving opportunities
• Support environmental initiatives through reduced paper usage
• Enable data-driven decision making

This transformation goes beyond mere process improvement—it represents a fundamental shift in how the energy and utilities sector manages and optimizes its operational expenses while preparing for future challenges in a rapidly evolving industry.

Strategic Change Management for T&E Transformation

While implementing advanced T&E technology is crucial, sustainable transformation requires a comprehensive change management strategy—particularly in an industry where operational stability is paramount. Success depends not merely on deploying new tools, but on fundamentally shifting organizational behaviors and processes across geographically dispersed teams.

Effective change management in the energy and utilities sector requires a structured approach that addresses both technical implementation and cultural adaptation. Key strategic elements include:

• Strategic Stakeholder Engagement: Identify and involve key stakeholders from all operational areas early in the transformation process. This early collaboration helps identify potential challenges, gather valuable insights, and build organizational support.
• Clear Value Communication: Develop a compelling narrative that connects T&E transformation to tangible business outcomes. Demonstrate how modern solutions address existing pain points while preparing the organization for future challenges.
• Executive Championship: Secure visible and active support from senior leadership to demonstrate organizational commitment and provide the necessary resources for successful implementation.
• Strategic Urgency: Build momentum by clearly articulating both the opportunities of transformation and the risks of maintaining status quo, particularly in areas of compliance and operational efficiency.
• Unified Organizational Vision: Establish a shared understanding of transformation goals that resonates across all levels of the organization, from field operations to executive leadership.

Measurable Impact of Strategic T&E Management

Organizations that successfully implement T&E transformation through effective change management realize significant operational and financial benefits. IDC analysis of companies using modern T&E solutions demonstrates measurable improvements across key performance indicators:

• Operational Efficiency: 54% reduction in travel booking time and 43% faster expense report processing
• Financial Performance: 50% decrease in reimbursement cycles, improving cash flow management
• Employee Experience: Significant reduction in administrative burden, leading to improved job satisfaction
• Compliance Accuracy: Enhanced ability to meet regulatory requirements through automated controls
• Data-Driven Insights: Improved visibility into spending patterns enabling better strategic decision-making

These improvements represent not just operational efficiencies but fundamental enhancements to how energy and utility companies manage and optimize their resources.

Future Considerations in Energy and Utilities T&E Management

As the energy and utilities sector continues to embrace digital transformation, having a robust and flexible T&E system is no longer optional—it's essential. By combining industry-specific features with a strong change management strategy, you can streamline operations, enhance compliance, and improve overall employee productivity.

With an advanced and integrated T&E management solution, you can confidently lead your organization into a more efficient, compliant, and sustainable future.

Learn more about how leading energy and utility companies are optimizing their T&E management through digital transformation and relying on SAP Concur solutions to enhance operational efficiency while ensuring regulatory compliance and supporting sustainability initiatives.