I hope that you have enjoyed the article “Procurement Card Pros & Cons.”

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While on the topic, I thought that I’d use this blog post to describe some of the many decisions that must be made when implementing a procurement card program. These include:

  • Should there be one standard spending limit for all procurement card holders, should each card holder have a customized limit, or should there be several spending limit categories?
  • What is the standard spending limit per day? Per transaction? Per month?
  • What categories should be restricted from purchase using a procurement card?
  • Who gets a procurement card and what are the criteria used to determine eligibility?
  • How many FTE’s are required to administer the procurement card program? (NOTE: The procurement card administrator position is usually staffed by someone who does other things, too. I’ve usually seen about 20 – 30 hours per week dedicated to procurement card administration.)
  • Should the procurement card only be usable with contracted suppliers?
  • How will you train procurement card holders with regard to logging transactions, distributing charges, security practices, etc?
  • What type of transaction information do you need to be made available centrally?

To Your Career,
Charles Dominick, SPSM
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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