Government could police spending cuts with a P-card system

| 0 Comments

 

Gordhan.jpgScepticism around government’s severe cuts to perks and expenditure, and whether these will really work, has been further fuelled by recent instances where members of public office have not adhered to the Finance Minister's spirit of cost-cutting. With the public’s patience wearing thin, government should consider a procurement card programme to curb expenditure, and reduce fraud and a waste of funds, writes Anita Carolus, Nedbank Corporate Card National Sales Manager, in this month’s SmartProcurement.


“A procurement card has controls such as spend limits and merchant category code blocking,” says Carolus. What this means is that the card can be blocked for casino spend, use at liquor stores or cash withdrawals, to name but a few. The card can also have a spend limit, which will ensure that the cardholder has the necessary funds available – and no more than that.


With these measures in place cardholders will not be able to spend excessively and they will be able to spend the available funds only where they should be spending it.
 

AnitaCarolus.jpgProcurement cards also have greater visibility of spend, as the programme offers up to third-level data. This is beneficial as greater visibility, regular review and reconciliation of spend on a procurement card guarantees early detection of fraud and misuse.


Furthermore, besides the controls that ensure funds are not wasted and the greater visibility that highlights suspicious spend, a procurement card programme saves processing cost.


Studies have shown that 60% of transactions by volume translate to only 5% of the transactions in monetary value, notes Carolus. These low-value, high-volume purchases require a lot of man-hours to process and the cost to process such transactions is often greater than the actual cost of the item. “These costs can range anywhere between R65 and R135, but can even go up to R700 per transaction.”
 

Procurement card programmes reduce the steps in the traditional P2P process, which are usually between 15 and 30, to less than 10 steps. As the steps are cut by more than half and less man hours are needed for the streamlined P2P process, a procurement card programme is clearly a great way to save money.


For more information on the benefits offered by a procurement card programme, contact Anita Carolus at AnitaCa@Nedbank.co.za.
 

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the