Procurement Cards

Six tips to create a world-class procurement strategy

 

Idea.jpgCorporates that adopt a silo approach and view the procurement process merely as a method of obtaining goods and services to fulfil an internal need, have missed a trick. An effective procurement strategy can create considerable business value through process optimisation across each department, and achieve better cost reductions.

According to research from global consultancy, The Hackett Group, world-class procurement departments operate about 20% more economically than the average company, and they have 27% fewer employees.

How can procurement drive down the cost of processing transactions?

 

IanHendry2.jpgWhat is the cost to your business to process one purchase order (PO)? How many POs do you process with a value below that amount? Are you spending a lot of money processing invoices of a low value?

If you need to simplify your procurement of low-value items, then you are in the company of most South African organisations. The average cost of processing a PO in South Africa is more than R700.

Implementing a P-Card programme is one solution. The average cost of processing procurement card (P-Card) transactions is typically less than R200, says Ian Hendry of Nedbank Commercial Card.

Five ways to streamline your procurement

 

IanHendry2.jpgRunning a successful business is stressful. Very stressful, in fact. Arguably the biggest challenge facing chief procurement officers and procurement managers is cashflow. Ensuring that you have the right stock levels without sacrificing pricing, or incurring wastage, will go a long way in alleviating month-end pressure. Open communication between the procurement- and finance departments will more than likely prevent crises of oversupply.

In this month’s SmartProcurement, Ian Hendry - Corporate Card Product Manager at Nedbank Corporate Card - explores five ways to help you streamline your procurement process, and improve your procurement function.

P-Cards - give a little, get a lot

 

Sunet.jpgAre you snowed under with processing POs for pencils because you are wary of trusting your employees with a purchasing card? asks Sunet Trollip, Project Manager, Nedbank Corporate Card in this month’s SmartProcurement.

P-Cards' detailed transaction information unmatched by corporate cards

IanHendry2.jpgIf you think a P-Card gets its name from the material with which it’s made, think again…

A P-Card or purchasing card is a charge card that allows the cardholder to purchase high-volume, low-value purchases without going through the hassle, and incurring the exorbitant costs, of generating a purchase order.

With an ordinary CorporateCard, the amount of information reflected in the statement is fairly simple. You’ll see the date of transaction, the name of the supplier and how much was spent. But procurement staff need far more detail, which is why purchase orders are generated and invoices retained, says Ian Hendry, Corporate Card Product Manager at Nedbank Corporate Card.

When processing an invoice costs more than the purchase... P-Card is your answer

IanHendry2.jpgIf 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.

Procurement certainty in an uncertain economic climate

 

Cards.jpgWhen asking clients what their biggest focus in the current volatile economic situation is, the most common answer is managing expenses effectively.
 

'It is never a case of simply cutting costs, but rather of ensuring that clients are managing costs effectively by knowing exactly when, by whom and for what company funds are being spent. Clients need to look at where they can possibly lower costs without crippling the procurement function and compromising the running of the company,' says Anita Carolus-Opperman, Nedbank Corporate Card National Sales, in this month’s SmartProcurement.

Should Government allow credit cards for purchasing?

 

card.jpgGovernment procurement and finance functions are faced with the need to be efficient, while simultaneously reducing fraud and increasing control, transparency and auditability for all expenditure. It is a tall order and at the same time these organisations are expected to constantly improve the services they provide to the communities they serve, says Vanitha Govender, Vice President, Government Solutions and Services, MasterCard Southern Africa, in this month's SmartProcurement.

The evolution of Procurement Cards into payment streamliners

 

Thumbnail image for AnitaCarolus.jpgOver the many years that the Procurement Card has been used in the market it has changed from being a payment mechanism to being a purchasing tool that significantly supports strategic procurement activities.


"It is a thrill to see that, as the world and the way business is done changes, the P-Card has been able to evolve with the rapidly changing environment, always ensuring that clients get the best out of their P-Card programmes,” says Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager.

Streamlining P-Card purchases with new technologies - Part 4

 

download.jpgIn the three previous issues of SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, introduced and highlighted the new trend in procurement – using online marketplaces and e-catalogues.

Streamlining P-Card purchases with new technologies - Part 3

 

AnitaCarolus.jpgIn previous issues of ' SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, highlighted the new trend of using online marketplaces and e-catalogues, as well as the critical components that a company needs to consider to ensure it derives value from the online marketplace.In this month’s issue Opperman discusses how to choose an online marketplace for your company:

 

White Paper: 4 Key benefits for Procurement Departments using Corporate T&E Cards

 

images.jpgAs procurement function has to deal with many small transactions, corporate cards provide distinct benefits for at least five different functions within a procurement department: treasury, accounts payable, financial systems, audit/compliance and budgeting/planning, explains Virginia Miller, Business Leader, CPS Product Development of MasterCard in this month's SmartProcurement. 

Streamlining P-Card purchases with new technologies - Part 2

 

p-card_header2-645x300.jpgOnline marketplaces are being used more frequently as part of the procurement function in companies and are a perfect example of how technology is not only enhancing, but also streamlining the way business is done globally.


In last month's SmartProcurement, Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, highlighted the new trend of using online marketplaces and e catalogues, and how this use further streamlines the procure-to-pay (P2P) process when implemented with a P Card.

Leveraging the efficiencies of payment cards to manage travel

 

Corporate-Cards-Not-Just-For-Travel.jpgTravel and Entertainment (T&E) is a critical expenditure category for nearly all organisations. Typically, it is the second largest controllable expense after salaries and benefits. In all cases, however, it is no longer regarded as best practice but essential practice for a successful T&E programme to deploy a corporate card, advises Master Card in this month's SmartProcurement.

Supplier delivery reliability inside SAP: Too much or too little, too early or too late?

 

StevenFreemantle2.JPGThere are many performance measures that can be considered when managing the performance of your buyers: cost saving, cost avoidance, quality, contract compliance, off-contract expenditure, management of procurement cycle times, procurement ROI, and many more. Those of you running SAP may have many sets of complex measures that tie into supplier performance management. These measures are necessary, but in the interests of simplicity there are two straightforward measures that are a good departure point for managing buyer’s and supplier’s day-to-day operational performance: on-time and in-full. In this month’s SmartProcurement, Steven Freemantle of SweetThorn Thought Leadership asks: “do you get exactly what you want when you need it?”

Streamlining P-Card purchases with new technologies - Part 1

 

AnitaCarolus.jpgWhen looking at the Kraljic model, where purchasing card (P-card)-type purchases can be categorised as non-critical items, a new trend has emerged that further streamlines the purchasing of low-value, high-volume items, as well as other ad hoc items.


This new trend is online marketplaces and e-catalogues, says Anita Carolus-Opperman, Nedbank Corporate Card National Sales Manager, in this month’s SmartProcurement.


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