P-Cards are not a new concept for companies. However, many companies are expanding its use, making the P-Card an extremely powerful tool. An article in Business Finance describes how P-Cards are going cardless and linking to E-Procurement. These new uses are helping companies to make better business decisions, which can only help them in today's competitive business world.
Cardless P-Cards: These are virtual cards based on a set of account numbers programmed into an automatic purchasing system. This system allows suppliers to charge for authorized orders up to a specific amount and time frame. Toyota Motor Insurance Services (TMIS)used the virtual p-card with third party repair shops. This lead to a 60% decrease in time spent reconciling requests for payment and increased company controls.
Tying to E-Procurement (Electronic Procurement Capabilities): Companies are linking p-card systems to e-procurement capabilities, enabling them to get closer to paperless transactions for invoices and payments. The goal for companies is to begin the purchasing process, get approval electronically, and then use the p-card to pay for an order online. Cox Enterprise was able to get volume discounts because they limited employees choice to approved vendors. This allowed them to gain more valuable data to make good business decisions.
Why Read: This article gives great examples on how two companies used the different capabilities of the p-card to their benefit. When companies grow the challenge of maintaining control over expenses can become increasingly difficult. P-cards can help to manage those expenses, so it's one less thing to worry about.
"Purchasing Cards: The Evolution Continues" By Karen M. Kroll
Business Finance, November 2005