Understand the Benefits

Based on comprehensive surveys and interviews with over 50 large and mid-size companies, Accenture identifies three key areas of savings that companies implementing American Express Corporate Purchasing Card will benefit from:

Process Efficiencies

• The American Express Corporate Purchasing Card offers 100% Line Item Detail (Level 3 data) allowing upload of data into clients ERP/AP systems.
• The process helps companies streamline and automate purchasing, reducing average transaction costs.
• Companies realise an average “hard-dollar saving” (defined as employees reduced or redeployed)per transaction.
• More than a third of purchasing transactions are still entirely manual, despite the process costs, leaving plenty of scope for most companies to make process savings.
• Even with growing use of e-Procurement and ERP, nearly 70% of purchasing transactions still end in costly paper invoices.

Compliance Improvements

• American Express Corporate Purchasing Card offers unique up front spend controls, including Preferred Supplier Restrictions, helping companies improve contract compliance levels by driving spend to preferred suppliers lists through flexible front-end and back-end controls.
• While companies can negotiate average contract discounts of 11.4%, as much as 32% of their total indirect spend is off-contract and not realising any savings. Companies using our Preferred Supplier Restriction functionality, exclusive to the American Express Corporate Purchasing Card, can improve compliance levels by 21%, cutting off-contract spend by two-thirds.

Sourcing Benefits

• With increased visibility and improved payment terms the American Express Corporate Purchasing Card helps companies negotiate greater average contract discounts with key suppliers.
• These enhancements can provide a benefit from spend consolidation savings of up to 1.5% of total spend.