P-Cards to Pay Suppliers

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    • #292060

       

      1. How many suppliers does your organization have? How many employees?  Annual revenue?
      2. Does your organization use P-Cards to pay suppliers?
        • If yes, for how long and is this policy of using P-Cards to pay suppliers mandated or optional? If no, proceed to question #3.
        • What is the average payment amount per transaction when using P-Cards to pay suppliers? What is the percent of total annual spend paid to suppliers with a P-Card?
        • Have suppliers increased their fees relating to p card payments because of merchant fees? If prices were increased, how did you justify or mitigate cost increase?
        • As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check?  Do you require dynamic discounting?
      3. If you don’t use P-Cards to pay suppliers, why not?
    • #292744
      Anonymous
      Guest

      1. How many suppliers does your organization have? How many employees? Annual revenue? Active suppliers: 350-400 Employees: 3000 Annual revenue: $3.3 billion 2. Does your organization use P-Cards to pay suppliers? a.If yes, for how long and is this policy of using P-Cards to pay suppliers mandated or optional? If no, proceed to question #3. Yes, Pcards are mandated under certain criteria. For any materials purchases for items that are inventoried (in our product catalog managed by our engineering department) it cannot be purchased with Pcard. Any non-inventoried items under $2500, can be purchased w/ Pcard. Any services being performed offsite under $2500 can be paid for via Pcard. Any onsite services must have a contract and cannot be paid on Pcard. What is the average payment amount per transaction when using P-Cards to pay suppliers? What is the percent of total annual spend paid to suppliers with a P-Card? Depends on the department but pcard spend should be $2500 or less. Pcard spend is probably around 1-2% of our spend. b.Have suppliers increased their fees relating to p card payments because of merchant fees? If prices were increased, how did you justify or mitigate cost increase? Not sure as Pcards are handled by our Accounting dept, not Purchasing. c. As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check? Do you require dynamic discounting? ACH is the preferred payment method. 3. If you don’t use P-Cards to pay suppliers, why not?

    • #292745
      Anonymous
      Guest

      We not currently use P-Card to pay suppliers. We have entertained the idea a few times over the last couple of years. The hang up has been in implementing the reconciliation portion of the payment process and labor resources to implement the project. Additionally we have an A/P initiative to implement ACH payments with all vendors. This initiative conflicts with P-Card payments to vendors.

    • #292746
      Anonymous
      Guest

      1.How many suppliers does your organization have? 22,000 How many employees? 17,000 Annual revenue? $22.5B 2. Does your organization use P-Cards to pay suppliers? yes a.If yes, for how long formally for two years and is this policy of using P-Cards to pay suppliers mandated or optional policy recommends use of PCard where accepted for all purchase less than $5000 where no preferred supplier exists? If no, proceed to question #3. b.What is the average payment amount per transaction when using P-Cards to pay suppliers?approx $100 What is the percent of total annual spend paid to suppliers with a P-Card? ranges from 2.0 – 2.5% c.Have suppliers increased their fees relating to p card payments because of merchant fees? If prices were increased, how did you justify or mitigate cost increase? low dollar transaction are typically with providers that already accept card as form of payment and is noted on supplier invoices (florist, subscriptions, etc) then targeted preferred suppliers that already accepted PCard as form of payment and negotiated further early payment discounts. justification is based on invoice reduction and related cheque processing costs, as well as future strategy to leverage employee reimbursement application for review, approval and payment d. As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check? ghost card, EFT, cheque Do you require dynamic discounting? No 3.If you don’t use P-Cards to pay suppliers, why not?

    • #292747
      Anonymous
      Guest

      1.How many suppliers does your organization have? 6,300 How many employees? 9,900 Domestic Annual revenue? $9.2 Billion 2.Does your organization use P-Cards to pay suppliers? Yes a.If yes, for how long? We have had a program in place for 3 years b. Is this policy of using P-Cards to pay suppliers mandated or optional? A Pcard is optional for some and required for others. For example if you order office supplies you must use a Pcard to make the payment. We work daily to identify categories of spend that a Pcard payment is ideal for. If we determine it is appropriate we then work with our employees and the supplier to make this transition and we then inactivate the vendor record in our AP system to prevent other types of payments occurring without some sort of review. c.What is the average payment amount per transaction when using P-Cards to pay suppliers? $574.00 d. What is the percent of total annual spend paid to suppliers with a P-Card? Currently it is approximately 4% e.Have suppliers increased their fees relating to p card payments because of merchant fees? In some cases yes f.If prices were increased, how did you justify or mitigate cost increase? We look at the amount of spend, number of transactions, cost per transaction and the rebate. Based on these factors we determine if a Pcard makes sense with the additional fees. We also talk to our suppliers about how card cost should be included in their overall costing model. g. As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check? ACH h. Do you require dynamic discounting? No 3. If you don’t use P-Cards to pay suppliers, why not? N/A

    • #292749
      Anonymous
      Guest

      1. How many suppliers does your organization have? How many employees? Annual revenue? a. Suppliers, over 3,500 b. Employees, over 5,000 c. Annual revenue, ~$24B 2. Does your organization use P-Cards to pay suppliers? a. Yes b. If yes, for how long and is this policy of using P-Cards to pay suppliers mandated or optional? If no, proceed to question #3. 1. Corporate purchase card program has been in place for 8 years (2005) 2. The p-card is an alternative method that is allowed for paying suppliers that are not setup for purchase orders. Purchase orders are our primary option for payment. c. What is the average payment amount per transaction when using P-Cards to pay suppliers? What is the percent of total annual spend paid to suppliers with a P-Card? 1. Average payment amount, $550. Large ticket average transaction amount, $15,000. Most of our p-card transactions are small dollar amounts. We do have some instances where large payments are made using p-cards, thus the two different averages. 2. Percent of total spend, roughly 4-5% of total vendor spend is done on p-card d. Have suppliers increased their fees relating to p card payments because of merchant fees? If prices were increased, how did you justify or mitigate cost increase? 1. No, we have not had fee increases. e. As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check? Do you require dynamic discounting? 1. Our preferred method to pay suppliers is through purchase orders and invoices. Suppliers are setup for purchase orders and send us invoices. These are paid by ACH or physical check, whichever the supplier has requested as a preferred payment method.

    • #292748

      1. How many suppliers does your organization have? How many employees? 2013 Annual revenue? 2012 consolidated earnings $105.6 million 2. Does your organization use P-Cards to pay suppliers? a. If yes, for how long and is this policy of using P-Cards to pay suppliers mandated or optional? Optional, but preferred for small dollar reoccurring purchases under $1000 and one-time expenses under $10000 If no, proceed to question #3. b. What is the average payment amount per transaction when using P-Cards to pay suppliers? $220/ave transaction What is the percent of total annual spend paid to suppliers with a P-Card? $12 million c. Have suppliers increased their fees relating to p card payments because of merchant fees? If prices were increased, how did you justify or mitigate cost increase? No increase in supplier fees d. As an alternative to paying suppliers with a P-Card, what is your preferred alternative? ACH? Check? Do you require dynamic discounting? No 3. If you don’t use P-Cards to pay suppliers, why not? N/A

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