Buyers eager for card savings

22 May 2007
More news

23 May 2007 | Paul Snell

Improved cost savings continues to be the primary reason for the use of purchasing cards, according to a study.

Research by the Aberdeen Group found that 34 per cent of European companies were looking to cards to improve cost savings. However, this was a smaller percentage than companies in North America (47 per cent), and Latin America (63 per cent).

Reducing the length of time employees spend on administration was the main goal of developing existing procurement card schemes. Some 86 per cent of respondents were keen to achieve this, with 82 per cent hoping to improve internal controls and fraud protection.

Firms in Europe, North America and Asia Pacific said administration of the cards presented the biggest challenge when introducing the scheme. The main obstacle for Latin American businesses, however, was gaining employee support for the programmes.

The survey recommended firms ensure their purchasing cards are integrated with their e-procurement systems. It added companies should communicate the benefits of procurement cards, such as shorter payment times, more clearly to suppliers.

The survey interviewed 263 companies worldwide in a variety of sectors.



SMmay2007

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE