The P-Card Treasure Trove: Uncover What Your Spend Data is Hiding

As a procurement leader, you know every dollar counts. Yet your organization's P-Card and T&E Card programs likely contain hidden opportunities to drive savings, enhance compliance, improve productivity, and boost your team's credibility.

Procurement Intel's proprietary P-Card analysis shines a spotlight on this shadow spend. Our detailed transaction assessments detect off-contract buying, new supplier opportunities and potential fraud. We uncover the root causes behind non-compliant purchasing so you can implement targeted fixes. Our analytics also spotlight productivity pitfalls buried in your data so you can optimize operations.

In short, we transform P-Card spend data into insights that tighten compliance, inform supplier negotiations, flag suspicious transactions, and reduce productivity losses. This ultimately unlocks meaningful cost savings while advancing your procurement strategy.

Compliance Gaps Exposed, Fixed

Take this real-world example from a Fortune 1000 company. At first glance, spend seemed within normal ranges. But a card spend analysis uncovered hundreds of Amazon purchases when Amazon wasn't an approved supplier. Surveying employees revealed Amazon's competitive pricing on office supplies, like toner, drove the unauthorized buys. 

Equipped with those insights, the company's Category Manager renegotiated pricing with their office supplies vendor and communicated the improved pricing to buyers. As a result, spend shifted back to the approved supplier and compliance skyrocketed to an all-time high.

Informed Supplier Negotiations

The illuminating power of P-Card analytics also enables more informed supplier negotiations. For one global manufacturer, spend analysis revealed their office supplies contract was in jeopardy. The incumbent vendor warned the company it was falling short of the spend threshold required to maintain their negotiated pricing, while also putting an expected six-figure rebate at risk.

Procurement Intel's assessment uncovered over 30% of office supply spend leaked to Office Depot, Amazon, Walmart, and other unauthorized sellers. Armed with data-backed insights on the actual buying patterns, the procurement team negotiated to retain existing pricing in return for tighter compliance controls. They also partnered to right-size the rebate relative to the revealed attainable spend volumes. By leveraging a P-Card spend analysis, the company transformed a contentious situation into an opportunity to enhance the supplier relationship and program performance.

Uncovering Hidden Fraud

Lurking within P-Card data could also be signs of fraud. For one organization, their spend analysis uncovered an alarming purchase pattern. A single employee made over 700 transactions under $50 over three years - almost one for every work day. The company's policy didn't require receipts for sub-$50 buys, creating the perfect loophole for long-term theft. With no oversight, the employee quietly exploited the weakness, stealing over $35,000 through small purchases that evaded attention.

Situations like this illustrate how rigorous P-Card analytics surfaced by Procurement Intel can detect potential fraud and non-compliance. By shining a light on suspicious transactions and patterns, we enable companies to tighten controls and deter future abuse before it impacts the bottom line. Both our data analysis capabilities along with our procurement acumen are essential to uncovering and addressing fraud risks hidden in P-Card spend.

Spotlighting Productivity Pitfalls

Digging into P-Card data can also reveal productivity drains. For one construction firm, Procurement Intel spotted thousands of trips to home improvement stores from job sites. Employees made multiple runs per day, often for small purchases under $150. With the nearest retailer 30+ minutes away, these frequent trips resulted in hundreds of lost labor hours, pulling their skilled labor off-site.

Armed with granular visibility into the issue, the company took action. They hired lower-cost runners to handle store trips and worked with suppliers to deliver more materials to job sites directly. By eliminating excessive trips to stores and lost productivity, they optimized labor, controlled costs, and kept major projects on schedule. The transformational power of data helped them transition from simply accepting the problem to actively improving performance.

P-Card analytics from Procurement Intel enlightens scenarios like this. By exposing productivity pitfalls hidden in transactions, we help transform spend data into operational insights that spark measurable improvements enterprise-wide.

Let Procurement Intel shed new light on your P-Card and T&E Card spend. Contact us today to learn how our intelligent spend analytics can uncover hidden treasure in your transaction data.

Silent Theft: The Hidden Menace of P-Card Fraud in Schools

In the bustling corridors of our educational institutions, a silent threat often goes unnoticed – the misuse of procurement cards (P-Cards). Cases across the US highlight a disturbing trend of P-Card fraud, which often remains undetected for years, costing schools and taxpayers from tens of thousands to millions of dollars.

Here are just 3 examples:

Sandy Springs, Georgia: Between 2008 and 2011, Eddie Echols, Principal of Riverwood International Charter School, misused an unauthorized Costco American Express card under the school's name, racking up nearly $25,000 in unmonitored expenditures​​. Police: Principal stole nearly $25K with fraudulent school card

Hempstead School District, New York: Timothy Gregg, serving as the Provisional Supervisor of Facilities from 2016 to 2018, engaged in fraudulent activities with a school district credit card. He allowed a local contractor to use the credit card for personal purchases at Home Depot, receiving kickbacks exceeding $50,000 in value​​. Former Hempstead School District Official Pleads Guilty to Credit Card Fraud

Little Rock School District, Arkansas: Karen James, an administrator, misused her LRSD credit cards from 2014 to 2018 for personal online shopping, leading to over $230,000 in fraudulent purchases​​ - $199,200 on over 2,400 purchases from Amazon and 83 purchases through PayPal, totaling $27,000. Former Little Rock School District Administrator Pleads Guilty to Mail Fraud

These stories are not just tales of caution; they are a call for proactive measures. In each case, the fraud went undetected for years, revealing a glaring gap in monitoring and auditing processes. Like a leak in a dam, small but continuous, these transgressions grow over time, leading to a catastrophic breach of trust and financial stability.

In today's era, where every penny counts towards shaping the future of our students, the importance of regular analyses and audits of P-Card usage cannot be overstated. Regular oversight serves as a vigilant watchdog, deterring potential misuses and promptly addressing any red flags. It’s not just a formality; It’s a necessity.

What about the cost?

But how can schools and districts, already burdened with myriad responsibilities, efficiently and effectively monitor P-Card usage?

This is where Procurement Intel steps in. Procurement Intel offers affordable P-Card Spend Analysis and Fraud Red Flag services. These services are designed not just to detect fraud but to prevent it by instilling a system of accountability and transparency.

Don't wait for the leak to become a deluge. Contact Procurement Intel today to learn more about how our Corporate Card Spend Analysis and Fraud Red Flag services can safeguard your institution's financial integrity.

Remember, in the world of procurement, vigilance is not just a virtue; it's a vital safeguard.

Maximizing Procurement Efficiency: Uncovering Hidden Opportunities with Spend Analysis

In the intricate world of procurement, every expense holds the potential for added value. Regular analysis of P-Card and T&E Card spending isn't just about tracking expenses; it's about uncovering opportunities for benefits and cost savings through strategic vendor relationships.

The Insightful Spend Analysis: Effective spend analysis transcends mere expense tracking. It involves delving into patterns and habits within your company's spending to identify frequently used vendors and the benefits they offer. This strategic approach can lead to discovering programs and partnerships that enhance efficiency and reduce costs.

The Home Depot Pro Xtra Advantage: For instance, an analysis might show a significant portion of your procurement budget spent at Home Depot. This isn't just an expenditure; it's an opportunity to leverage the Home Depot Pro Xtra program. With benefits like additional support, preferred pricing, and exclusive business tools, this program can significantly enhance control over your purchases and offer substantial cost savings.

WEX Fleet Cards: Streamlining Fuel Expenses: Similarly, diverse spending across multiple fuel centers suggests an opportunity for consolidation and efficiency. Adopting a WEX Fleet Card can streamline this aspect of your expenses. WEX cards offer support, rebates, improved security, and simplified account management, transforming a scattered expense category into a streamlined, cost-effective operation.

Beyond Savings: Gaining a Competitive Edge: Regular spend analysis empowers your procurement team to go beyond mere savings. Identifying key vendors and leveraging their specialized programs means enhanced support, better pricing, and tools that give your business a competitive edge. It's not just about spending less; it's about spending smarter.

How do you find value in every transaction? Regular P-Card and T&E Card Spend Analyses open doors to beneficial programs and partnerships, turning routine expenditures into strategic advantages.

Explore the potential of your procurement strategies with Procurement Intel. Talk with a Spend Analyst who can guide you in uncovering hidden opportunities in your spending patterns and optimizing your procurement processes for maximum efficiency and value.

Navigating the Gray Zone: Personal Expenses on Company P-Cards

In a modern corporate landscape where trust and transparency reign supreme, managing organizational resources with precision is not just a requirement—it's a badge of honor. Among these resources, the Procurement Card (P-Card) stands out, serving as a trusted tool to expedite procurement processes. However, this trust is sometimes stretched thin by personal expenses, casting shadows of potential liabilities even in well-intentioned settings.

Unearthing the Personal Spend Phenomenon

Our recent investigation at Procurement Intel unveiled a significant volume of personal spending channeled through company P-Cards. These encompass everyday items like food and fuel, extending to larger purchases like furniture and travel. Unlike outright fraudulent activities explored in our article “Is Fraudulent Spend Happening in Your Business?”, the transactions we’re talking about today are typically reimbursed by employees, yet they carry a suite of hidden repercussions for the organizations involved.

The Administrative Quagmire

Every personal transaction on a company P-Card necessitates a trail of administrative actions to ensure proper reconciliation. This not only diverts valuable time and resources but also detracts from the core goal of procurement efficiency. Moreover, it imposes a burden on the administrative machinery, stretching its bandwidth thin.

The Culture of Fiscal Discipline: A Line Blurred

The casual mingling of personal and company expenses, however fleeting, could erode the culture of fiscal discipline. When the boundary between personal and company spending becomes porous, even momentarily, it subtly undermines the ethos of financial responsibility that sustains corporate integrity.

Liability: The Silent Specter

Amidst the maze of personal reimbursements, the specter of financial liability lurks. In instances where personal expenditures are not promptly reconciled, the company teeters on the brink of financial liability. This precarious stance could attract the gaze of regulatory authorities, spiraling into a whirlpool of legal and reputational challenges.

Building Robust Financial Fortresses

The tale of personal expenses on company P-Cards is a clarion call for organizations to bolster their financial governance frameworks. It advocates for a culture steeped in stringent oversight, robust policies, and unwavering financial discipline. In this realm, the P-Card transforms from a potential liability into a beacon of trust and efficiency, propelling the organization towards a horizon of fiscal integrity and operational excellence.

At Procurement Intel, we aim to clarify the unclear, simplify the complex, and promote a trustworthy and effective procurement ecosystem. Our exploration of P-Card usage highlights our dedication to fostering a culture of informed, responsible, and transparent procurement practices. With careful oversight and insight, we strive to help businesses utilize resources as engines of growth, not sources of risk.

Take the first step towards navigating the gray zones of P-Card usage and mitigating hidden liabilities in your organization and talk with a Spend Analyst at Procurement Intel today.

Digital Divergence: How eProcurement Can Unknowingly Fuel Alternative Spend

In the modern business arena, eProcurement systems like Ariba and Coupa have emerged as the architects of a streamlined, transparent, and efficient procurement process. They promise a realm where every purchase is a well-considered, well-documented step towards operational excellence. However, as with any change, the transition to a digital procurement platform comes with its own set of challenges, mainly stemming from old habits that die hard.

The Allure of eProcurement

The transition to eProcurement systems is akin to stepping into a well-lit, well-organized modern marketplace from a bustling, chaotic bazaar. It promises clarity, control, and convenience. The initial figures are encouraging. Maverick spending takes a nosedive, procurement processes seem to be on a leash, and a newfound transparency in organizational spend is welcomed with open arms.

The Subtle Detour

However, as the novelty wears off, a pattern emerges. The stringent controls and multiple approval layers, although necessary, start to feel like a maze to some employees. The simplicity and immediacy of old pathways like P-Cards, T&E Cards, or personal cards beckon. Slowly but surely, a detour from the modern marketplace to the old bazaar starts manifesting. It's subtle, it's gradual, but it's real.

The Unseen Divergence

The digital platform continues to showcase a controlled spend environment, but what lurks beneath is a growing divergence towards alternative purchasing channels. This shift is often unnoticed, given the spotlight on the eProcurement system’s analytics. The old bazaar is bustling again, albeit in the shadows.

The Ripple Effect

This unnoticed divergence isn’t just a deviation from modern procurement practices; it’s a leak in the procurement pipeline. The manual reconciliation of expenses from alternative channels is a step back, a time-consuming activity prone to errors. The lack of visibility into these transactions could also harbor potential fraudulent activities, a ghost from the past we thought we had left behind.

Steering Back on Track

The route to remedying this situation involves a blend of awareness, simplification, and oversight:

1. Analytics: Relying solely on data from your eProcurement system only reveals part of the story. Including analytics on alternative purchasing channels will provide a holistic view of organizational spend.

2. User Education: Continuous training and awareness programs to underline the benefits and ease of use of eProcurement systems, nudging employees back to the modern marketplace.

3. Process Streamlining: Evaluating and simplifying the procurement processes within eProcurement systems to ensure they are user-friendly and not a labyrinth.

4. Regular Audits: Routine audits to monitor compliance, identify discrepancies, and ensure that the procurement policies are evolving with the changing organizational needs.

Discover what a P-Card spend analysis can do for your organization at ProcurementIntel.com or Contact a Spend Analyst to see how we can help you uncover the hidden alleys of alternative spending and steer your organization back on the track of streamlined, compliant procurement.

Is Fraudulent Spend Happening in Your business? Here Are Two Real World Examples

In the world of procurement and expense management, P-Cards and T&E Cards are hailed for their convenience. However, without the right checks and balances, these tools can become avenues for fraud. The following real-life examples shed light on the need for regular oversight and sometimes, even a re-evaluation of card policies.

Flying Under the Radar: The Case of Low Dollar Purchases: One company's spend analysis revealed a startling pattern. Over a three-year period an employee made over 700 purchases, all under $50. That's like a purchase every working day for three years. Why does it matter that the purchases were under $50? Because the company's policy didn’t require receipts for purchases under $50. That policy, coupled with a lack of regular T&E card audits, allowed this employee to exploit the system unnoticed, for years. The loophole provided him an opportunity, and the absence of oversight gave him the time to, well let’s call it what it is, steal over $35,000 from his employer, less than $50 at a time.

The Dangers of Overlooking 'Minor' Expenses: Cases like this underline the risks associated with seemingly minor expenses. A few dollars here and there might not raise eyebrows, but they add up. While setting a threshold for receipt submission can reduce administrative burdens, it can also open doors for fraudulent activities if not paired with regular checks, which can act as a deterrent to this type of behavior. What’s that saying, an ounce of prevention is worth a pound of cure?”

The Lavish Lifestyle: The $5 Million Deception: On the ‘go big or go home’ end, a finance planning manager at HP exploited P-Card policies to misappropriate over $5 million. Using multiple P-Cards, she channeled funds to personal accounts, making lavish purchases, from luxury cars like Teslas and Porsches to high-end jewelry and designer bags. How did she get away even submitting such obviously non-business expenses? She created false invoices. Her elaborate scheme, spanning several years, underscores the importance of vigilance in P-Card management. For an in-depth look at this case, read the full article here.

Building a Robust Defense Against Fraud:

• Regular Audits: Periodic checks can identify unusual patterns, like the high frequency of low-dollar transactions.

• Re-evaluate Policies: While policies are set to simplify processes, it's essential to ensure they don't inadvertently create vulnerabilities.

• Educate Employees: Awareness campaigns can deter potential fraudsters and encourage others to report suspicious activities.

• Leverage Technology: Analytics tools can flag unusual spending patterns, providing an additional layer of security.

P-Card and T&E Card fraud can be subtle and, at times, creatively hidden within the confines of company policies. Regular oversight, combined with a proactive approach to policy design and employee education, can go a long way in ensuring that these convenient tools are used appropriately and securely.

Take the first step toward identifying and eliminating fraudulent spend in your organization and talk with a Spend Analyst at Procurement Intel today.

Boost Compliance & Cost Savings With P-Card Data

While Procurement Cards and T&E Cards (we'll just call them P-Cards for simplicity) offer a convenient way to manage expenses. If you're not keeping a close watch on P-Card spend, you're missing out on a critical piece to protecting your procurement policies, investments in technology, negotiated pricing, and rebates. We'll highlight how the regular analysis of P-Card spend helps identify procurement issues such as spending outside your eProcurement system, off-contract or rogue spend, and non-compliant spending. We'll also share common reasons for these issues, based on survey results and conversations with P-Card holders, and how you can leverage these insights in your own organization.

Were you here to learn more about fraudulent spending? Well, you can find out more about that here: Is Fraudulent Spend Happening in Your Business? and here: The Hidden Menace of P-Card Fraud in Schools

Identifying Trouble Areas in Procurement Processes

P-Card spend analysis and audits aren't just about crunching numbers. They’re a gateway to understanding the behavior and choices of individuals within your organization when it comes to procurement. Our experiences from numerous P-Card analyses and audits have provided us the opportunity to connect with individuals who have, sometimes unknowingly, stepped outside procurement and P-Card policies. A significant number of purchases that should have gone through eProcurement systems or specific contracted suppliers like Staples, Grainger, CDW, W.B. Mason, and countless others, took a different route.

The revelations from our surveys and one on one discussions with these buyers have been eye-opening. Most P-Card holders who engaged in off-contract or rogue spending fell into one of four categories:

1. Unaware of Contracted Suppliers: They didn’t know there was a contracted supplier for the items they were purchasing.

2. Price-Savvy Shoppers: They were on a mission to find the best price, aiming to be good stewards of the business.

3. Out-of-Stock Dilemma: The contracted supplier was out of stock, pushing them to look elsewhere.

4. eProcurement System Challenges: They found the eProcurement system hard to navigate and opted for a simpler option.

Each of these categories points to different facets of the procurement process that may need attention. Regular analysis of P-Card spend can unveil these patterns, helping to identify areas where education, training, or system improvements could significantly impact compliance and cost savings.

Wondering why fraudulent spending isn’t on this list? While fraudulent spending exists, and can be uncovered by a P-Card spend analysis, it’s not one of the top reasons for people going outside of policies. We’ve found that most people are not bad actors, they simply don’t know the policies or are just trying to find the items they need at a good price without much complexity.

Uncovering Poor Pricing From Contracted Suppliers

Regular P-Card spend analysis can also uncover frequent purchases from a particular non-contracted supplier. This information could be a catalyst for negotiating new contracts or exploring alternative suppliers who can provide better pricing or terms.

A Tale of Compliance and Cost-Savings
A Fortune 1,000 organization dove into their P-Card spend and stumbled upon hundreds of purchases on Amazon, which wasn’t an approved supplier at the time. A targeted survey of employees who purchased office supplies on Amazon revealed that pricing, particularly for toner, drove the off contract spend. With this newfound insight, the office supplies Category Manager renegotiated pricing with their vendor and informed the buyers who previously shopped on Amazon of the new pricing they helped secure. Post renegotiation, a P-Card spend analysis and purchasing audits showed that compliance soared to an all-time high.

Unveiling eProcurement System Challenges

eProcurement systems are hailed for hosting catalogs with negotiated pricing, streamlining approval workflows, integrating invoicing processes, and bolstering oversight. However, despite these advantages, buyers often encounter hurdles that prompt them to sidestep these systems for smaller purchases. The ease and speed of using P-Cards becomes enticing, sometimes to the extent that employees are willing to leave their desks, and venture outside to make necessary purchases, inadvertently contributing to productivity loss.

Uncovering the reasons behind this avoidance is crucial for rectifying the issues and ensuring that your investment in an eProcurement system is fully leveraged. Regular P-Card spend analysis is a beacon in this quest. By identifying individuals who frequently opt for P-Card usage over the eProcurement system, you can uncover the root causes of this preference. Our findings have unearthed a variety of user experience issues:

1. Confusing Help Messaging: Some users find the help messaging within the system confusing, leaving them uncertain whether their order will be processed, or delivered to the right address.

2. Overwhelming Interface: For others, an overwhelming main page deters them from going any further and instead, choosing a local store or an online store you may have never heard of.

3. Unintuitive Steps: Some users get frustrated and simply give up when hit with in unintuitive steps, avoiding the ePro system at all costs in the future.

4. Approval Delays: Approvals are not always turned around the same, or even next day, slowing down how quickly the buyer will receive their items. These delays push buyers to a quicker option – their P-Cards.

Addressing these issues isn't just about improving the eProcurement system; it's about reinstating confidence and ease of use for your buyers. It's about ensuring that the system serves as a facilitator, not a deterrent, to compliant procurement practices. Remedying these challenges, based on the insights from a P-Card analysis, is a stride towards enhancing user satisfaction, compliance, and overall procurement efficiency.

Discovering New Suppliers for Negotiation

Regular analysis of P-Card spend doesn’t just spotlight issues; it also unveils potential opportunities. By identifying spending with non-contracted suppliers, organizations can discover new suppliers who may offer better pricing or terms.

Navigating towards a Rebate
A global manufacturer faced a hurdle when their office supplies vendor informed them that they were falling short of the spend threshold required to maintain their negotiated pricing and putting their rebate in jeopardy. An in-depth P-Card analysis revealed that over 30% of their more than $1M of office supplies spend was channeling through other vendors like Amazon, Walmart, and random e-commerce sites. Armed with this data, the procurement Director and Category Manager worked with their supplier to keep the negotiated pricing in place and re-evaluate the rebate during the upcoming renewal. Through buyer education, policy updates, and continuous P-Card analysis, they managed to steer the organization back on track towards achieving the rebate, showcasing the power of informed supplier negotiations.

The Path to Optimized Procurement

The journey towards optimizing procurement processes is ongoing. Every analysis, every conversation, and every policy tweak is a step towards a more compliant and cost-effective procurement ecosystem. It’s about fostering a culture of informed spending, ensuring that every dollar spent aligns with your organization's procurement policies and objectives. Regular P-Card spend analysis is a cornerstone in this journey, offering a clear lens to view the procurement landscape, identify issues, negotiate better contracts, and drive continuous improvement.

Unleashing the full potential of your procurement processes requires a blend of continuous analysis, education, and system improvements. A P-Card spend analysis is a powerful tool in this endeavor, offering invaluable insights to fine-tune your procurement strategies, engage with suppliers effectively, and ensure your eProcurement system is user-friendly and serves its intended purpose.

Discover what a P-Card spend analysis can do for your organization at ProcurementIntel.com or Contact a Spend Analyst to see if we can help you boost compliance and cost savings with a Spend Analysis.