How high are your travel credit card interest charges?

| 0 Comments
TraceyShaw.jpgReading the various business travel magazines, a hot topic that seemingly hasn’t been resolved is how to alleviate the cost risk of unexpected credit card interest charges that are levied against a company for late payment.

And it’s not that corporations are avoiding paying their suppliers, rather, it’s accounts payable departments’ checks and balances and a duty to ensure that all the paperwork is in order before releasing payment (rightly so) that delays money changing hands.

However, the right technology is available to eliminate the risk of these hefty credit card interest charges, says Tracey Shaw of TravelluXion, in this month’s SmartProcurement.

It’s no secret that the traditional method of procuring travel usually requires a paper-based travel requisition or an email, or in the worst case, a phone call with no approval processes in place.

This is submitted to a line manager or budget owner for approval, the costs are approved and the travel management company (TMC) is given the authorization to incur costs against the travel lodge card on behalf of the client.

The TMC is usually required to produce the original signed travel requisition, along with any applicable supplier invoices to the corporation, prior to release of payment to the credit card company (which is termed matching).

The payment process requires the input of independent parties: the TMC, the supplier, the corporate client and the credit card company. Without a supporting technology framework to capture all relevant documents (travel requisitions, invoices, billbacks and expense claims) on one platform that links them to the original travel order number the parties will be acting on separate information.

When travel requisitions have gone missing, or have been altered, the process becomes muddled and onerous on the TMC - even more so when the penalties of credit card interest charges run into hundreds of thousands of Rands.

Service level agreements between a corporation and its TMC now come into play, and lengthy debates ensue around who is liable owing to non-payment.

Sometimes this process only comes to the fore months, sometimes a year later, which makes such negotiations unpleasant for all.

The challenge is alleviating these unnecessary charges and in the absence of a technology platform that allows all interested parties access, in an auditable method, to progress this payment cycle, penalities will continue to be incurred.

Ideally the travel requisition and ordering process should be hosted on a travel procurement application that has robust approval frameworks; budget information available at the time of approval; a date and time stamp for all transactions and approvals; and that can pool-together all the relevant documentation for accounts payable to access to facilitate payment.

This will empower organisations with a procurement process that is hosted on-site, is not paper-based, cannot be manipulated after approval without raising red flags, and that connects multiple invoices back to one order number in order to streamline the procurement process, simplify the payment mechanism and reduce the risk of credit card penalties, amongst other things.

Sound ideal? It would certainly be an improvement on a time-consuming, manual, paper-based process.

Contact Tracey Shaw on tracey.shaw@traveluxion.co.za for more information.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More