When certain conditions are met, p-card programs provide many benefits, according to The Corporate Purchasing Card Benchmark Survey.
Universities, government agencies, large corporations and small businesses completed the survey distributed by major card issuers including American Express and Chase Manhattan. Here are some of the findings:
1. Respondents indicated the average cost of a single transaction to acquire and pay for a typical item by the traditional purchase order method was $91; the average cost per p-card transaction was $15.
2. Organizations shifting the largest number of transactions to p-cards report higher levels of managerial support for the card program at all levels of the company.
3. The key element of success in p-card programs is a liberal distribution of cards to the widest possible array of employees.
4. Successful programs encourage card use by eliminating card spending logs, having fewer card spending audits and eliminating manual sales tax data collection.
5. Companies that shift large numbers of transactions to the card and capture a larger percent of the under $2,000 transaction opportunity are significantly more likely to have ongoing communications about the program.
6. More successful programs communicated a greater sense of urgency about card use and the impact they have on organizational efficiency. For more information on The Corporate Purchasing Card Benchmark Survey, visit www.napcp.org/palmersurvey.