Title: History of the PCard
1History of the P-Card
- The Purchasing Card Program began operating in
Arkansas in September 2002 with the U of A and
UCA being the first to have a managing account
with US Bank. - State Agencies began using the P-Card in March
2004. The Game and Fish Commission was the first
State Agency with the P-Card beginning with 5
cards. - The following charts illustrate the programs
growth.
2Statewide P-Card Spending per Contract Period of
May April
3Rebates Per Contract Period
Rebates were not earned during first 2 contract
periods.
4What Are the Benefits of a Purchasing Card?
5Time Savings
- Receive goods faster
- Less time needed to pay bills
- Fewer checks written
6Increased Vendor Selection
- P-Card is a VISA card, not store branded
- NO P.O. required
- Vendors get their money within 36 hours
7Paper Savings
- No P.O. required
- Only one invoice per month
- Only one check per month
- Online reporting capability
8Built in purchasing control
- Per month spending limit
- Per transaction spending limit
- Block vendors based on MCC numbers
- Access to cardholder account via the internet
9Money Savings
- All costs associated with the procurement process
are reduced. The breakdown on the next page
illustrates this.
10Cost Breakdown of PO vs. Purchasing Card
Traditional Purchase Order
Purchasing Card
The total cost associated with payment for goods
and services (including receipt and matching of
invoices, purchase orders, receiving documents
approval workflow for payment, disbursement of
funds mailing/transmitting payment
post-purchase accounting for transactions and
reconciliation of disbursement with bank records)
7.60
31.30
The total cost of the purchasing process
(including activities to requisition a good,
approve a purchase, and generate and deliver a
purchase order to supplier)
31.75
5.71
The total cost of sourcing (including
specification of requirements, supplier
pre-selection, transmittal of requirements to
suppliers, receipt and evaluation of supplier
quotations, supplier selection, and contracting)
26.16
8.52
89.21
21.83
2005 Purchasing Card Benchmark Survey
Results RPMG Research Corporation
11Okay. How does my organization get into the
State Purchasing Card Program?
12Steps to Getting the State Purchasing Card if
Not a State Agency
- Contact DFA/OSP
- Complete Participating Agency Addendum and send
in to OSP - Send 3 years of audited financial information to
OSP - Establish a Purchasing Card Policy/Procedure
manual (may use state version or hybrid version) -
13Dept of Finance and Administration - Office of
State Procurement Purchasing Card Contacts
- Jeff Spears (501) 371-1405 jeff.spears_at_dfa.state.
ar.us - Norma Little (501) 683-2217
- norma.little_at_dfa.state.ar.us
- Address
- 1509 West 7th Street, 3rd Floor
- Little Rock, AR 72201