If you’re spending 80% of your effort processing purchase orders for 20% of your spend, it may be time to change tactics.
You can deliver real savings by diverting low-value, high-volume transactions through a Purchasing Card or P-Card, ideal for companies that want complete visibility and control of their spend, and also need to streamline their purchasing processes, says Ian Hendry, Corporate Card Product Manager at Nedbank Corporate Card.
Focus your team’s resources on the supplier relationships and purchases that are strategic for your business and let the P-Card take care of all those purchases that have a low-profit impact. Not only will you reduce process costs, you’ll simplify purchasing of ad-hoc items and may even use your P-Card to replace petty cash.
With the average cost of processing a purchase order in South Africa over R700 and under R200 for P-Card transactions, you’ll save almost 70% on your transaction costs and free-up your staff to focus on what makes a real difference to your business.
And that’s why 75% of organisations in the USA use P-Card as a payment mechanism.
Ask yourself: How much does it cost your business to process a purchase order? And how many invoices are you processing that fall below this amount?Is it costing you more to process an invoice in many cases than the actual cost of the item?
You could simplify your procurement of low-value items by implementing a P-Card programme.
What are some of the benefits?
• It gives you enhanced visibility of expenses
• Empowers your staff and allows them to maintain control
• Ensures enhanced data integration
• Entails a single payment to the bank
• Speeds up payment to suppliers
• Order processing time is reduced
• Recons are easier
If you want to know if a P-Card programme would work for your business, simply email Pascalle Albrecht or click here for more information about Nedbank’s P-Card.
