Purchasing Card Lead-time

Project Description:

Problem Statement: From January to March firm lost 28 days availability (from 35 days to 7 days) on 80% of employee purchasing cards requested. This 28-day loss of electronic purchasing requires the substitution of manual invoice processing and a loss of interchange revenue opportunities.

Goal Statement: By October, reduce the lead time for issuing employee purchasing cards from 35 days to 7 days and reduce the volume of requests by 80%.

Start Date: May  End Date: December

Project Metrics

DPMO: Measure: 1,000,000 Control: 10,000

Project Benefits

Direct Savings:$17,000

• Interchange revenue loss ($1,102 annual spend per card X 1,050 cards unavailable per year X 1.50%)

Soft Savings:$245,000

• Manual invoice processing costs (87 cards unavailable per month X 5 transactions per month X $47 per transaction X 12 months)

Realized Savings: $262,00

Project Accomplishments

• Reduced volume of P-Card requests by 85%, by converting Retail locations to generic issues.
• Increased availability of P-Cards by 28 days by structuring a Service Level Agreement with Central Operations.