Next Level. PCard Program Review why have one? 5/14/2013. Rebate Incentive$ Speed and Convenience. Taking Your Procurement Card Program to the

Transcription

1 Taking Your Procurement Card Program to the Next Level PCard Program Review why have one? Lower Transaction Costs Speed and Convenience Rebate Incentive$ Cheaper, faster, $$$ 1

2 Lower Transaction Costs When compared with the traditional procure to pay process How much lower? According to the 2010 Purchasing Card Benchmarking Survey* A PO costs $93 per transaction A PCard transaction costs $22 net savings attributable to PCard use of $71 per transaction * Palmer and Gupta,

3 Speed and Convenience PCards make it easier for users to make routine purchases Rebate Incentives Think of it as bonus money that can help pay for cost of your program 3

4 PCard Rebates 101» The more you spend the more you earn» The faster you pay» the more you earn $ Card Tip Increase spend by identifying vendors who accept credit cards Best PCard Program Attributes Taking a proactive approach to program management leads to better results. Shop for Best Bank Card Company Mine PCard Data Conduct Spend Analysis Change Purchasing Actions According to 2010 PCard Benchmark Survey Palmer and Gupta,

5 Finding a Bank On line reconciliation tool Designated Account Rep Fast and Responsive customer service Card $ Good Rebate program Best PCard Program Attributes Data is like a mineral deposit. It is there in the ground, but needs to be discovered. Data is there in the system, but Shop for Best Bank Card Company Mine PCard Data Conduct Spend Analysis Change Purchasing Actions According to 2010 PCard Benchmark Survey Palmer and Gupta,

6 Mining PCard Data It s not difficult! Use it to improve program There are three levels of PCard transaction detail Level 1 includes the merchant name, transaction date and amount of sale Level 2 may include sales tax information Level 3 also includes line item detail Line item info Level 3 Data Mfr Product Code Item Description Quantity Unit Cost Total w/tax PENCIL POUCH,TRANSLUCENT $1.00 $ PORTFOLIO,POCKET,TWIN, $1.41 $ BNDR,3RG,VNL,2",BLK $2.69 $ GLOVES,NITRILE POWDER FR $8.12 $ LABEL,LSR,FILE,ASTD,750C $13.14 $ Probe,Cover,M031,for,Mod $14.99 $ BINDER,PL,VIEW,1",WHITE $1.44 $ LABEL,IJ,FILE,WHT,750CT $13.11 $ PAD,EASEL,BLEED BLOCKER, $8.83 $ MARKER,SET,SCENT,MR SKTC $5.99 $ BADGE,NAME,LASER,400PK,B $4.99 $ PAD,EASEL,BLEED BLOCKER $5.46 $5.97 With this level of data you can do spend analysis 6

7 Best PCard Program Attributes Data is just statistics and numbers unless you do something with it. Shop for Best Bank Card Company Mine PCard Data Conduct Spend Analysis Change Purchasing Actions According to 2010 PCard Benchmark Survey Palmer and Gupta, 2010 Spend Analysis Taking your PCard program to the NEXT LEVEL 7

8 Why Spend Analysis In the private sector, companies using spend analysis save an average of 10 16% savings in overall costs. Pikulik, J (March, 2005) The Purchasing Card Benchmark Report, Aberdeen Group, 4 SPEND ANALYSIS Finding cost savings opportunities KISS 8

9 Spend Analysis Review Data Analyze Spend Change Purchasing Actions SPEND ANALYSIS» Identify bad shopping decisions» Identify savings opportunities» Identify potential purchasing changes» According to the 2010 Purchasing Card Benchmarking Survey Results*: only 26% of respondents reported that their organization uses purchasing card data to obtain a higher discount for goods or services from a vendor» *Palmer and Gupta (2010) 9

10 Best PCard Program Attributes Change is good you go first Shop for Best Bank Card Company Mine PCard Data Conduct Spend Analysis Change Purchasing Actions According to 2010 PCard Benchmark Survey Palmer and Gupta, CHANGE PURCHASING ACTIONS Finding cost savings opportunities 10

11 Manage Suppliers Bids Must pay bills What about Cooperative Contracts? Do you believe in ghosts? Volume Matters! 11

12 Change Purchasing Actions Ideas 4+ Optimize card deployment Matching your vendor list to names of companies accepting credit cards On line purchases Cooperative contracts Requiring payment by PCard in your bid specifications Identify Ghost (virtual) account opportunities Continuously review for new opportunities Take Your Procurement Card Program to the Next Level What s Your Message??s 12

13 QUESTIONS? To submit a question type your question in the upper part of your Q&A window and click on Ask. 13