Cut and deal new savings with procurement cards

Article Abstract:

The procurement card is a new financial product designed to help companies make small purchases for maintenance, repairs and operating supplies in a way that reduces their costs, offers greater control and minimizes record keeping. Many major American and multinational companies have already established their own procurement card programs and are reducing their total purchasing budgets. These organizations include Westinghouse Electric, Pepsi Cola North America, Land-O-Lakes Inc. and Temple University. However, before companies begin using purchasing cards, they must first assess whether these products are appropriate for their organizations. Procurement programs are most beneficial for medium-sized and large firms that make numerous small-dollar transactions. It is also advisable for mid-sized firms with substantial large-dollar purchases. Even small business can benefit from purchasing cards but their savings will probably be modest.

Business Financing, Business enterprises, Plastic transaction cards, Transaction cards

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Derivatives and the banks

Article Abstract:

Deriviatives are financial instruments with returns that are connected or derived from shifts in the value of stocks, bonds, commodities, currencies and other assets. For most banks involved in derivatives, the use of the tool is primarily for interest rate and foreign exchange contracts. To protect these institutions from catastrophic losses, the strategy is to develop a clear mission and guidelines, establish a timely and dependable set of data on overall positions, and provide effective internal controls. Moreover, they should go beyond merely knowing the reasons for trading in derivatives by also analyzing such factors as liquidity risk and counterparty risk. These banks should also guard against speculation, unchecked trader egos and uncontrolled greed because these are the surefire recipes for failure.

Banking industry, Commercial banks, Derivatives (Financial instruments)

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Corporate purchasing cards are hitting their stride

Article Abstract:

The use of corporate purchasing cards has become a common practice. Through purchasing card programs, companies are able to cut costs related to various nonproduction or indirect expenditures belonging to the Maintenance, Repair and Operating (MRO) category. The major MRO supply categories are temporary staffing, office supplies, overnight freight, industrial supply, and computer hardware and software. These cards result in savings because they get rid of thousands of purchase orders, invoices and check-issuance costs, and they integrate data on these purchases, which enables companies to determine their most substantial spendings and identify areas where they can negotiate with suppliers. The examples of pioneers in the corporate purchasing card programs can help others intending to follow their lead.

Magnetic Cards, Magnetic and Optical Recording Media Manufacturing, Electronic components, not elsewhere classified, Smart cards

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