Gartner Research

Control Out-of-Compliance P-Card Purchases With Improved Governance

Published: 19 August 2015

ID: G00278200

Analyst(s): Victoria Barber, Deborah Wilson

Summary

Organizations deploy purchasing card (p-card) programs to reduce paperwork, earn rebates and empower end users to buy low-cost goods and services. IT, ITAM and procurement leaders must govern p-card use to avoid software compliance issues, lost discounts and the inability to analyze spending.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The lure of rebates, less paper to move around and the ability to extend payment terms make p-card programs attractive to finance and procurement
  • Unmanaged p-card programs enable individual employees to buy without procurement involvement, resulting in failure to leverage centrally negotiating pricing and contract terms
  • The use of MCC restrictions, transaction limits, monthly reconciliation and P2P solutions for on-contract items can give procurement improved control over p-card spend

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