Expanded Study is Central Element of Visa's Enhanced Commercial Card Program Optimization Tools
SAN FRANCISCO, Jun 11, 2008 (BUSINESS WIRE) -- Visa Inc. (NYSE: V) released today an updated and expanded
commercial payment card best practices study that reveals
procure-to-pay (P2P) automation is among leading factors contributing
to more efficient business processes and cost savings at today's
companies across the globe. The study, conducted by Deloitte
Consulting on behalf of Visa Commercial Solutions, found that
utilizing the latest P2P technologies and integrating commercial
payment card usage with those systems can result in better process
efficiency, improved spend visibility, optimization of resources and
increased cost savings.
"Automating corporate expense management through the elimination
of paper-based processes and labor-intensive activities is becoming an
increasingly important source of new efficiencies and cost savings for
today's business," said Darren Parslow, Global Head of Commercial
Solutions, Visa Inc. "The P2P best practices can help companies
identify needed improvements and boost the efficiency of their expense
management processes so they can actually realize those cost savings."
Key Findings
The P2P process is defined as a procurement spectrum that includes
sourcing, order placement, payment, settlement, reconciliation,
control, audit and reporting. More than 60 individual best practices
identify several factors contributing to the improvement of the P2P
process, including:
-- Automate the P2P process from start to finish
-- Create visibility and mainstream commercial payment
initiatives with active senior management support
-- Make P2P a center of excellence within the organization
-- Establish a commercial card program management framework
-- Integrate the card program into enterprise-wide performance
management initiatives
-- Designate a commercial card for company meetings-related
expenditures
-- Create a formal supplier management function
-- Develop an integrated controls strategy
-- Use sophisticated reporting and spend analysis tools
"As a leading B2B payments provider, Visa is committed to
monitoring current trends and developing best practices relating to
the use of commercial cards as an effective corporate expense
management tool," said Jennifer Steinman, Principal, Deloitte
Consulting. "This study, conducted by Deloitte Consulting on behalf of
Visa, provides a current view of what leading edge companies from
across the globe are doing to streamline their internal processes and
maximize the return from their commercial card programs."
Efficiency Driven Cost Savings
The study also found that following P2P best practices can lead to
significant efficiency-driven cost savings resulting from process
streamlining. For example:
-- A $30+ billion global media and entertainment company achieved
over $100 million in annual cost savings by strategically
sourcing direct and indirect spend categories.
-- An $800 million global manufacturing company was able to
reduce its supplier base by 70 percent while consolidating 80
percent of its overall spending with a select group of
suppliers.
-- A $2.5 billion global technology company was able to
significantly reduce its reliance on costly and outdated
paper-based payment processes by shifting 85 percent of its
payments to more efficient and cost-effective electronic
payment methods.
Program Optimization
Visa's best practices are a central element of the company's
overall commercial card program optimization tools. These tools
consist of various knowledge-based research and services designed to
help businesses optimize their commercial card programs for best
results and cost savings through improved process efficiencies. In
addition to the commercial card best practices, the optimization tools
include spend analysis, benchmarking analysis tools, e-procurement
card integration recommended practices, identification of
Visa-accepting suppliers and other tools.
Notes to Editors:
Study Methodology: Visa's 2008 Global Procure-to-Pay and
Commercial Card Best Practices Study builds upon an original Visa best
practices study from 2002. It was conducted by Deloitte Consulting in
2007 and included 90 in-depth interviews at more than 60 large and
mid-sized companies worldwide. The evaluation of the P2P process
included sourcing, order placement, payment, settlement,
reconciliation, control, audit and reporting activities. Fifty two
percent of study participants were from the United States with the
remaining participants representing regions from across the globe. The
majority of study participants were from the manufacturing, consumer
products and healthcare industries, followed in descending order by
technology, energy/utilities, financial services, transportation,
public sector and communications. A summary of the study results can
be found at www.visa.com/procuretopaybestpracticestudy.
About Visa Inc.: Visa Inc. operates the world's largest retail
electronic payments network providing processing services and payment
product platforms. This includes consumer credit, debit, prepaid and
commercial payments, which are offered under the Visa, Visa Electron,
Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around
the world and Visa/PLUS is one of the world's largest global ATM
networks, offering cash access in local currency in more than 170
countries. For more information, visit www.visa.corporate.com.
SOURCE: Visa Inc.
Visa Inc.
Sabine Middlemass, +1 650-432-8307
globalmedia@visa.com
or
Fleishman-Hillard
Kenny Thomas, +1 775-338-7051
kenny.thomas@fleishman.com