Implementing purchasing cards? Keep an eye on...

ProcurementCard.jpgProcurement Cards (P-Cards) are rapidly gaining acceptance in South African business circles as an efficient way of managing expenditure with company-approved vendors on low-value/high-volume transactions.

When implementing a P-Card programme within your company there are a few things that should be noted, advises Kgomotso Ntsimane, Marketing Manager for Nedbank Corporate Issuing, in this month’s SmartProcurement.


  1. It is important to have strong management control of the card programme. This is best achieved by appointing a card administrator within the company who is responsible for the management of the programme.
  2. There should be a strict company policy for the use of P-Cards, with clear, documented processes. The policy should be designed specifically around how the company wants to use P-Cards and all employees that will be using them must sign acceptance of the policy.
  3. It is advisable to have the P-Card transaction data fed into an expense management system so that cardholders can make expense allocations against the relevant GL code and cost centre. Once allocations have been made and approved, the P-Card transaction data should be fed into the company's ERP system.

The benefits of using P-Cards outweigh any perceived concerns, says Ntsimane.

P-Cards afford greater visibility of what is being spent and, as a result, greater control and a lesser chance of abuse. A P-Card programme allows the company to see where purchases are made in a convenient, central electronic location. This allows for consolidation of data into information that can easily be used for trend analysis and predictions.

Furthermore, smaller-value transactions nearly always have a high administration cost that is often much greater than the cost of the actual item. Using a P-Card for these purchases introduces a huge cost saving to the company and allows resources to be utilised much more productively.

Nedbank is a leading provider of P-Card Solutions in South Africa.

SmartProcurement’s Business Case for P-Cards in the P2P Environment half-day workshop will be held on 10 July 2013 in Centurion. Part of SmartProcurement’s continuous professional development series, the workshop will share with you streetwise procurement and supply management procure-to-pay best practice.

Email to register. 

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