Invoice Travelodge by fim36094


Invoice Travelodge document sample

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									Expanding Your Payment Card
Ian Makgill, Ticon UK Ltd
Expanding Your Payment Card Scheme


  1        Why Expand?

  2        Where to Start

  3        Supplier Analysis

  4        Process Analysis

  5        Category Analysis

  6        Overlaying Analyses

  7        Benefits / Things to Consider

  8        Summary

Page  2
 P-cards are often seen as useful in specific instances, or in specific
    High volume, low value transactions
    Hotels and travel
    Stationery

 Often seen as „quick wins‟
    High levels of card acceptance
    More efficient processes

 Quick wins are a good starting point, but p-cards can deliver even greater
  savings when applied more widely
    Should form an integral part of an organisation‟s procurement strategy

Page  3
 The foundations of successful procurement lie in data
    A targeted p-card scheme expansion is no exception

 Understanding which of your key suppliers can accept payment by card is
    This will undoubtedly be a mixture of knowledge and research
    “I know Travelodge accepts cards, but does my local B&B?”
    What information will I be able to get?

Page  4
 To understand the extent of the opportunity, more detailed information will
  be required:
    Your transaction volumes with each supplier (how many invoices)
    Your transaction values with each supplier (how much you spend)
    Invoice bands (AIV)

 To understand the opportunity for p-card expansion you also need to
  understand which suppliers accept card payments

Page  5
 Supplier Matching Service
 Matches a list of up to 500 suppliers against their merchant status:
    Non-merchant
    Merchant (level 1)
    Summary / LID merchant (level 2/3)

 Categorised (Thomson / ProClass)

Page  6
 Using the results of the supplier acceptance match, a more detailed
  opportunity analysis for p-cards can be completed:
 Breakdown by invoice value:

            Over £5.5m spent
           where invoice values
            are less than £500

Page  7
 Breakdown by invoice volume:

                                 In this real example,
                                    nearly half of all
                                  invoices are under
                                  £500 and could be
                                      paid by card

Page  8
Supplier Analysis

               Advantages                              Challenges
   Good procurement data on your          Time-consuming to contact suppliers
    current suppliers                       individually
   Understanding which of your key        Not always willing or able to provide
    suppliers accept p-card payments        information
   Understanding the opportunities for    Only as accurate as the data
    different values of payments            provided
   Category analysis possible
   Real figures to help to build a
    business case

Page  9
 Understanding your suppliers is essential, but so is understanding your own
  internal processes
 Where can my processes be improved?
    Cheque payments
    Paper requisition and invoices
    Unconsolidated invoices
    Prompt payment issues

 Need to identify suppliers with whom processes are currently inefficient
 However, unpicking processes can often be challenging and time-consuming
 Lack of management buy-in, resourcing issues and skill shortages have
  traditionally hampered process improvement efforts in local authorities
   (source: NPIP dissemination workshop surveys)

Page  10
 A targeted p-card expansion can be based on categories of spend
 Rather than individual suppliers, whole areas of opportunity may occur
  within a category:
    Mobile workers (e.g. building maintenance)
    Driving contract compliance

 Problem categories will provide instant targets for p-card scheme
 Difficulties surrounding a lack of universal, standardised categorisation
 Difficulty in knowing which categories to choose for further investigation

Page  11
 Key suppliers identified
    What categories are they in?
    Which have inefficient processes?
    Who accepts p-cards?                         Processes

            Targeting categories
            and suppliers where
            p-cards are accepted
             and processes are           Categories       Merchants
               most inefficient

Page  12

 Greater efficiency
    Improved CPA/CAA rating
    Cashable savings?

 Contribution to LAA targets
 Local economy benefits
 Supplier benefits

 If well targeted, p-card scheme expansion can be win-win for all parties

Page  13
Things to Consider

 Supplier adoption – engaging with suppliers to drive p-card acceptance
 Scalability of current card reconciliation processes
 Who will get cards?
 Will further controls be needed?
    Which controls are appropriate to which categories?
 Benefits realisation
    Cashable?
    How will benefits be measured?
    How will benefits be achieved?
 Accountability – who will lead and what authority do they have to drive

Page  14

Expanding your p-card scheme

                     Understanding who your key suppliers are
Supplier Analysis
                     Investigating whether they can accept p-card payments

                  Analysing your own internal processes for paying suppliers
Process Analysis  Identifying areas of inefficiency or areas where p-cards could add real

                     Breaking down your key suppliers by category
                     Identifying which categories provide the most opportunity for expanding
      Analysis        your p-card scheme

                   Overlaying your supplier, process and category analysis
 Target Areas for  Next steps – Supplier adoption? Data requirements? Benefits
    Expansion       realisation?
                   A challenging, yet rewarding exercise

Page  15
            Do You Have
            Any Questions?
            Ian Makgill, Ticon
            020 7836 1999

Page  16

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