This report provides data on a wide range of important topics associated with successful purchasing card use, as follows:
The Enduring Appeal and Foundation of Purchasing Card Value Respondents
rate the level of value attained from purchasing cards across a variety
of financial and process-improvement measures. Users identify
purchasing card to be most preferred among other payment methods across
various payment criteria. The Report highlights that the value attained
from purchasing cards is largely driven by the actions of management in
the categories of acceptance, control, and (use of) technology. Purchasing Card Spending in the U.S. and Canada The
growth of purchasing cards is discussed between 2014 and 2016, and as
projected through 2021. Factors influencing growth are measured
including: the adoption of EAP (or virtual cards), mobile technology
used in the procurement process, and the use of cards within
e-procurement software.
Key benchmark statistics are provided for
purchasing card programs, such as: Monthly spending per organization,
per employee, per card, and per transaction; monthly transactions per
card, the card-to-employee ratio, and the percentage of transactions of
differing amounts paid by purchasing cards. Cost Savings, Value Creation, and Benefits from Purchasing Card Use The
value created by purchasing cards is documented by way of staffing
reduction/reassignment, transaction cost savings, cycle time savings,
vendor discount improvement, increases in working capital, increased
spend transparency, rebates, and elimination of petty cash accounts and
cash advances. Additionally, the value created by purchasing cards can
have a direct financial impact on a corporation’s net income and market
valuation. Program Progress and Potential The current
level of purchasing card use among various categories of goods and
services is assessed, as well as the potential for greater card spending
(and associated benefits) through the capture of more spending
categories and a larger percentage of spending within each category paid
with cards.
Electronic Accounts Payable The current
level of EAP adoption is discussed, as well as its impact on purchasing
card programs, and the potential for market expansion.
Suppliers and Purchasing Cards The
level of supplier acceptance of purchasing cards is shown via the
number of suppliers and the percentage of an organization’s supplier
base paid with card. Additional topics include: (a) the impact of
increased card acceptance, (b) card benefits received by a supplier for a
p-card transaction for use in acceptance negotiations, (c) actions
taken by respondents to incentivize suppliers to accept cards, and (d)
enablement strategies in place and their impact on p-card programs. The
Report also discusses purchasing card use with suppliers outside of the
U.S. and Canada.
Best Practices The 2017 edition of the
Purchasing Card Benchmark Survey examines best practices of outstanding
purchasing card programs and sheds light on continuing market trends.
Specifically, the report includes the impact on card programs from card
distribution, spending limits, mandates, supplier enablement strategies,
technology integration, expanded card toolkit options, and more.
How to Improve the Program and On-Board a Virtuous Cycle Simply
put, greater card benefits are derived from greater card use. A set of
nine action items are provided to assist struggling programs in
improving their use of p-cards and obtaining the promised card value.
Common barriers to p-card program growth and expansion are observed, as
well as suggestions to overcome them.
“One Card” and Other Wallet Items The
prevalence of “one card” programs (one card used for all business
expenses including travel) and its impact on organizations is examined,
as well as the current status of card programs, other than p-card, in
place.
Fraud, Misuse, and Barriers to Purchasing Card Program Success As
in previous years, the level of card misuse (policy violations, fraud,
and misrepresented business spending) is assessed. The Report shows the
prevalence of card misuse to be very low, and its impact to be
financially insignificant compared to the cost savings and benefits
derived from p-card use. Respondents provide some actions taken to
reduce the potential for card misuse.
