Search
 

The Re-re-invention of the P-Card

Cards are pushed as a piece of the payments puzzle and not a stand-alone solution

By Richard Gamble | Updated on December 28, 2007

Seneca Medical Inc. only started using purchasing cards in 2007, but already the company is employing a couple of different strategies to make the cards work more effectively for the $350 million distributor of medical and surgical supplies. First, Seneca has eight plastic cards in circulation to use traditionally to buy small stuff directly. But it also has a ghost card it uses with two suppliers of core inventory, and that ‘card’ sees $700,000 of action monthly, with an impressive average transaction size of $30,000.

While invoices are still received and matched, payment to suppliers is not delayed. “When we get invoices from the suppliers using the ghost card, we match them with our monthly credit card bill,” reports CFO Todd Howell. “The vendor is paid on shipment, and we don’t have to pay our bank [KeyBank] for 30 days and are not charged interest. These suppliers offer prompt-payment discounts, so by paying quickly with the card, we get a 2% discount. That means that a $50,000 order only costs us $49,000. It’s a tremendous savings.” Seneca only uses the cards with these two vendors for purchases in Indiana and Ohio, but hopes to pump up volume by using the card in two more states soon.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.