Procurement Professional is the official publication of CIPS Australasia

#82 - Hands up for P cards anyone?

19 Oct 2009

The Buyer witnessed a show-of-hands straw poll at the CIPSA PSPF4 event in Sydney earlier this year, which suggested only 30% of public sector agencies are using purchasing cards for their users. Purchasing cards are really corporate charge cards used for purchasing more than just travel n trivia on pre-approved categories from pre-approved sources; increasingly through pre-approved online catalogues. 

This lack of penetration is surprising really, as purchasing cards offer real benefits ..... they control spend limits, can control supplier choice (in some cases can only be accepted at certain outlets), they offer real-time spend tracking, detailed & pre coded management information and relieve busy buyers of order placing duties and much paperwork.

Of course, there is an downside too. CFOs often complain that P cards can actually encourage spending, as it is easier to use a corporate card than reclaim expenses or go through a discouraging requisition n purchase process.

In addition to the usual suspects (Amex and Diners Club), both VISA and Mastercard are now actively in the space in Australia. And others for specific categories, like fuel. Four bidders a decent tender makes.

Purchasing cards are a real opportunity for most procurement departments. Especially the busy ones.

The Buyer – posted 19th October 2009

The views of THE BUYER are personal and are not necessarily those of Procurement Professional magazine, BTTB Marketing nor CIPS.