22 June 2007 | Paul Snell
Savings made by using the government procurement card have risen by more than £27 million over the past year, according to recent findings.
Savings made by using the card in 2006 reached £108.6 million, compared with £80.7 million in 2005, according to the Government Procurement Card Annual Report 2006, published last week by OGCbuying.solutions (OGCbs) and Visa.
The report said the increase was due to a bigger uptake of the cards, accounting for a million more transactions than in 2005. It also claimed use of the card saved over 38.7 million sheets of A4 paper, based on saving 10 sheets of A4 per transaction.
Savings are created when using the card by replacing traditional paper-based systems and achieving discounts from suppliers for prompt payment. Yet the study acknowledges most savings made are non-cashable improvements in process efficiency.
Last year, annual spend on the card reached more than £676 million. OGCbs has set a target of £840 million for 2007, a rise of 25 per cent. Travel and office supplies continued to be the two highest spend categories.