Procurement Card Pros & Cons<\/h1><\/div><\/div><\/div>What Should You Know About Procurement Cards?<\/h2><\/div><\/div><\/div>More than a decade after becoming mainstream, procurement cards remain a key component of procurement departments? repertoires. Whether implementing a new procurement card program or administering one that has been in place for years, procurement departments need to continually consider these pros and cons of procurement cards…<\/p>\n
Advantages\/Pros:<\/p>\n
\n- Procurement cards reduce the cycle time of purchasing transactions<\/li>\n
- Procurement cards can improve supplier relations as suppliers receive a payment within 2-5 days<\/li>\n
- Procurement cards can reduce the number of supplier invoices, which could lead to a reduction in expenses on accounts payable personnel<\/li>\n
- With proper controls, procurement cards can restrict maverick buying as well as buying non-authorized categories of goods and services<\/li>\n
- Some procurement card programs can provide clearer reports of how money is being spent<\/li>\n
- Procurement card programs foster a feeling of empowerment among employees<\/li>\n<\/ul>\n
Disadvantages\/Cons:<\/p>\n
\n- Procurement card use exposes the organization to the potential for undetected credit card fraud and identity theft, which can result in lost money<\/li>\n
- The work involved in reconciling a procurement card statement with a purchase log and distributing charges to the proper accounts can divert resources from value-added work<\/li>\n
- Procurement cards generally don’t provide the same level of budget visibility as an ERP system does<\/li>\n
- Multiple ways of placing orders (e.g., Pcard, eProcurement, ERP, requisitions, etc.) can confuse requisitioners who may not know the proper method for each type of purchase<\/li>\n
- Procurement card spend data may not be integrated with other purchase data, resulting in incomplete information when conducting spend analysis<\/a><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b> Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in NLPA Learning<\/span><\/a>.<\/span><\/p>\nRecommended Reading:<\/strong><\/p>\n\n- Procurement Card Questions<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
What Should You Know About Procurement Cards?<\/h2><\/div><\/div><\/div>More than a decade after becoming mainstream, procurement cards remain a key component of procurement departments? repertoires. Whether implementing a new procurement card program or administering one that has been in place for years, procurement departments need to continually consider these pros and cons of procurement cards…<\/p>\n
Advantages\/Pros:<\/p>\n
\n- Procurement cards reduce the cycle time of purchasing transactions<\/li>\n
- Procurement cards can improve supplier relations as suppliers receive a payment within 2-5 days<\/li>\n
- Procurement cards can reduce the number of supplier invoices, which could lead to a reduction in expenses on accounts payable personnel<\/li>\n
- With proper controls, procurement cards can restrict maverick buying as well as buying non-authorized categories of goods and services<\/li>\n
- Some procurement card programs can provide clearer reports of how money is being spent<\/li>\n
- Procurement card programs foster a feeling of empowerment among employees<\/li>\n<\/ul>\n
Disadvantages\/Cons:<\/p>\n
\n- Procurement card use exposes the organization to the potential for undetected credit card fraud and identity theft, which can result in lost money<\/li>\n
- The work involved in reconciling a procurement card statement with a purchase log and distributing charges to the proper accounts can divert resources from value-added work<\/li>\n
- Procurement cards generally don’t provide the same level of budget visibility as an ERP system does<\/li>\n
- Multiple ways of placing orders (e.g., Pcard, eProcurement, ERP, requisitions, etc.) can confuse requisitioners who may not know the proper method for each type of purchase<\/li>\n
- Procurement card spend data may not be integrated with other purchase data, resulting in incomplete information when conducting spend analysis<\/a><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b> Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in NLPA Learning<\/span><\/a>.<\/span><\/p>\nRecommended Reading:<\/strong><\/p>\n\n- Procurement Card Questions<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
More than a decade after becoming mainstream, procurement cards remain a key component of procurement departments? repertoires. Whether implementing a new procurement card program or administering one that has been in place for years, procurement departments need to continually consider these pros and cons of procurement cards…<\/p>\n
Advantages\/Pros:<\/p>\n
- \n
- Procurement cards reduce the cycle time of purchasing transactions<\/li>\n
- Procurement cards can improve supplier relations as suppliers receive a payment within 2-5 days<\/li>\n
- Procurement cards can reduce the number of supplier invoices, which could lead to a reduction in expenses on accounts payable personnel<\/li>\n
- With proper controls, procurement cards can restrict maverick buying as well as buying non-authorized categories of goods and services<\/li>\n
- Some procurement card programs can provide clearer reports of how money is being spent<\/li>\n
- Procurement card programs foster a feeling of empowerment among employees<\/li>\n<\/ul>\n
Disadvantages\/Cons:<\/p>\n
- \n
- Procurement card use exposes the organization to the potential for undetected credit card fraud and identity theft, which can result in lost money<\/li>\n
- The work involved in reconciling a procurement card statement with a purchase log and distributing charges to the proper accounts can divert resources from value-added work<\/li>\n
- Procurement cards generally don’t provide the same level of budget visibility as an ERP system does<\/li>\n
- Multiple ways of placing orders (e.g., Pcard, eProcurement, ERP, requisitions, etc.) can confuse requisitioners who may not know the proper method for each type of purchase<\/li>\n
- Procurement card spend data may not be integrated with other purchase data, resulting in incomplete information when conducting spend analysis<\/a><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b> Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in NLPA Learning<\/span><\/a>.<\/span><\/p>\n
Recommended Reading:<\/strong><\/p>\n
- \n
- Procurement Card Questions<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
- Procurement Card Questions<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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