{"id":2307,"date":"2007-04-23T16:19:00","date_gmt":"2007-04-23T16:19:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2007\/04\/23\/smackdown-blanket-p-o-s-vs-the-p-card\/"},"modified":"2023-06-27T04:32:07","modified_gmt":"2023-06-27T08:32:07","slug":"smackdown-blanket-p-o-s-vs-the-p-card","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/smackdown-blanket-p-o-s-vs-the-p-card\/","title":{"rendered":"Smackdown:  Blanket P.O.&#8217;s vs The P-Card"},"content":{"rendered":"<p>Blanket P.O.\u2019s and Procurement Cards (P-cards) are two tools that non-eProcurement environments can adopt to reduce tactical activities in a purchasing department. Professional purchasing staff should rarely \u201ccut P.O.\u2019s\u201d for orders under $100 when a vendor and pricing have already been determined by the purchasing team. When trying to decide which of these two tools to use, here are a few things to consider\u2026<br \/>\n<strong><br \/>\nSpeed of Implementation<br \/>\n<\/strong><br \/>\nIf your company does not currently have a P-card program in place, it can take some implementation time to research the market, select a provider, strategize a rollout, train users, etc. In contrast, your existing purchasing system may already have blanket order functionality giving you the opportunity to implement blanket orders immediately. If P-cards are your long-term solution across multiple categories, you can always start with blanket orders and migrate to P-card later.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p><strong>Chance of Paying For What You Didn\u2019t Get<\/strong><\/p>\n<p>With both P-cards and blanket orders, there is a risk of paying for what you didn\u2019t receive. It\u2019s no secret that use of stolen credit card numbers is widespread and P-cards are not exempt from fraudulent transactions. But, if you use a 2-way match (P.O. matches the invoice) instead of a 3-way match (P.O. matches the invoice matches the receiving records), a supplier could invoice you for more line items than they shipped and still be paid. You have to simply determine which of these two methods represent the least risk as well as which is easiest to audit.<\/p>\n<p><strong>Transaction Cost Savings<\/strong><\/p>\n<p>It is widely acknowledged that one of the best benefits of P-card is the reduction of administrative costs associated with paying invoices. So, while blanket orders do not provide any of this type of cost savings compared to having the purchasing department place orders, P-cards definitely do.<\/p>\n<p><strong>Ease of Use<\/strong><\/p>\n<p>Most of your end users should know how to use a credit card to place orders. However, they may struggle with remembering a purchase order number and other relevant details when placing a release against a blanket order. Not a big deal, but something to consider. Because this change affects end users (and may not be popular), you might want to create a team and invite end users on the team so that they feel they have control of their destiny which leads to greater buy-in.<\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<p><a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/got-an-escalation-plan\/\" aria-label=\"\u201cGot An Escalation Plan?\u201d (Edit)\">Got An Escalation Plan<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-spsm-hits-the-caribbean\/\" aria-label=\"\u201cThe SPSM Hits The Caribbean!\u201d (Edit)\">The SPSM Hits The Caribbean!<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-price-of-supplier-diversity\/\" aria-label=\"\u201cThe Price of Supplier Diversity\u201d (Edit)\">The Price of Supplier Diversity<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/inventory-purchasing\/\" aria-label=\"\u201cInventory Purchasing\u201d (Edit)\">Inventory Purchasing<\/a><br \/>\n<a class=\"row-title\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-untrue-advantage-of-classroom-training\/\" aria-label=\"\u201cThe Untrue Advantage of Classroom Training\u201d (Edit)\">The Untrue Advantage of Classroom Training<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Blanket P.O.\u2019s and Procurement Cards (P-cards) are two tools that [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - 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