Purchasing Cards (P-Cards)

On the public administration level ,organisations successfully utilise P-Cards in order to better manage, control and reduce administrative costs with success (Chandrashekari and Gopalakrishnan)

Information about Purchasing Cards (P-Cards)

P-Cards were initially introduced in the late 1980s in the US to assist federal government agencies with purchasing small value goods without delaying payments to sellers linked to the bureaucratic processes (Palmer, 2002). On the public administration level organisations successfully utilised P-Cards in order to better manage, control and reduce administrative costs with success (Chandrashekari and Gopalakrishnan, 2005). These examples of benefits achieved through the use of P-Cards are well-documented across different levels of US government at both federal and local levels (Daly and Buehner, 2003). Similarly, the private sector has had a record of success in using P-Cards. Reflecting on the need to cut down maintenance and administrative costs and respond to increasing competition and the recent financial crisis, private sector companies turned to innovative methods, such as P-Cards. The development of technology and expansion of e-commerce facilitated the implementation and usage of P-Cards across SME and larger companies (CIPS: Purchasing cards).

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