A properly-implemented purchasing card program will benefit your organization through reduced invoice and purchase order volume, reduced payment processing time, fewer outgoing checks, and improved cash flow management.

However, these benefits aren’t gained by simply dropping a p-card program over your existing procure-to-pay process. Instead, you have to adequately plan and prepare for the implementation, which includes establishing spending limits, rules about when cards can be used, and methods for tracking compliance.

A recent article published by Purchasing.com describes the p-card program implemented by ACE Electric in Valdosta, Ga. Before putting the program in place, the company carefully selected the employees that would have access to the cards. Rather than making them available to entire departments, cards were given to members of management, branch managers, department managers, project managers, and superintendents.

In addition, the article states that ACE established a $200 spending limit on each card and only authorized the cards to make purchases from specific categories, including purchases at home improvement stores, electrical supplies, travel, food, and lodging.

Thanks to putting careful planning into their program, ACE streamlined its payment processes and gained an additional 25 to 30 days cash on hand. For more, see the full story at Purchasing.com.