The Good Ol' Procurement Card

I hope that you have enjoyed the article "Procurement Card Pros & Cons."

While on the topic, I thought that I'd use this blog post to describe some of the many decisions that must be made when implementing a procurement card program. These include:

• Should there be one standard spending limit for all procurement card holders, should each card holder have a customized limit, or should there be several spending limit categories?
• What is the standard spending limit per day? Per transaction? Per month?
• What categories should be restricted from purchase using a procurement card?
• Who gets a procurement card and what are the criteria used to determine eligibility?
• How many FTE's are required to administer the procurement card program? (NOTE: The procurement card administrator position is usually staffed by someone who does other things, too. I've usually seen about 20 - 30 hours per week dedicated to procurement card administration.)
• Should the procurement card only be usable with contracted suppliers?
• How will you train procurement card holders with regard to logging transactions, distributing charges, security practices, etc?
• What type of transaction information do you need to be made available centrally?

To Your Career,
Charles Dominick, SPSM
President
Next Level Purchasing, Inc.
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