Visa purchasing card delivers millions in savings: study
Public and private sector organizations in the Asia-Pacific Region can decrease their annual purchasing costs by up to 73 percent by moving from an old-economy paper-based purchasing system to a purchasing card system such as Visa Purchasing, a recent independent study by Deloitte & Touche Consulting Group has shown.
As purchasing card systems rapidly replace paper-based purchasing systems, the study of 18 "best-practice" companies in the U.S. and the UK found that companies that adopted a purchasing card system, on average saved US$60 per purchasing transaction for an annual average saving in time and cost of about $4.1 million.
The leading provider of purchasing cards and systems is Visa.
Visa Country Manager for Indonesia Ellyana C. Fuad said: "Organizations in Asia-Pacific can replicate the savings that companies in the U.S. and the UK have achieved by implementing purchasing card systems.
"Visa Purchasing Card system is a productivity tool that allows medium to large companies to improve their purchasing processes for efficiency gains and cost savings. The system is an easy and streamlined way for companies to boost their competitiveness in the vital chain area of their business."
In some companies, procurement can be a tedious and administratively intensive process involving paper purchase forms, mailing, filing and tracking. The purchasing card system takes much of the grind out of the process, allowing automated procurement over the phone or Internet.
The Deloitte & Touche study found that in addition to the streamlining of administrative processes, orders placed through a purchasing card system over the phone saved on average four minutes per transactions compared with the old paper-based processes.
In addition to the pure cost savings, the Visa Purchasing card system offers a wide range of customized management and reporting features which enable better tracking of procurement and invoicing.
"With the Visa Purchasing Card system, companies can monitor and control their expenses better and track enhanced data for accounting, tax and order-description requirements," said Ellyana.
The purchasing card system also offers companies the flexibility to take their procurement process online, delivering further time and efficiency gains. The purchasing card program can be expanded through Web/Internet-based purchases, temporary services, express delivery services, fleet and capital purchases and other flexible service options.
As a case in point, Ellyana noted that Visa had recently announced a major application of its purchasing card system over the Internet in conjunction with Indonesia's Bank Universal. The Bank Universal Visa Virtual Card, based on the Visa Purchasing Card, enables about 3,000 hospitals throughout Indonesia to safely order and pay for medical and hospital equipment over the Internet.
As the "World's Best Way To Pay", Visa is the world's leading payment brand and the largest payment system worldwide with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa-branded cards generate $1.6 trillion in annual volume and are accepted at more than 19 million worldwide locations, including at more than 627,000 ATMs in the Visa Global ATM Network.
Visa, Bank Universal team up to provide hospitals with e-payment
Visa International announced recently a partnership with Bank Universal to revolutionize the safe and secure procurement approach of more than 3,000 hospitals across Indonesia.
The Visa/Bank Universal partnership introduced the Bank Universal Virtual Card, which is based on the Visa Purchasing Card product.
The virtual card provides a new, safe and secure system for hospitals throughout Indonesia to purchase medical and hospital equipment via the Internet, significantly reducing procurement time and costs and delivering a streamlined system of managing the procurement process.
Payments are authenticated through a PIN (Personal Identity Number) system for security.
The introduction of the e-procurement system comes as the region prepares for the introduction of the ASEAN Free Trade Area and will enable Indonesian hospitals to take maximum advantage of the procurement benefits the Free Trade Area will offer.
First-movers of the new system include Jakarta-based hospitals St. Carollus, RS Fatmawati, Pelni and Sumber Waras.