UVM Purchasing Card Manual
1.0 INTRODUCTION AND PURPOSE
Welcome to the University of Vermont Purchasing Card Program. Although the use of a credit card is not a new technique in consumer buying, it is relatively new in institutional purchasing. This Purchasing Card Program for low dollar value purchases is intended to simplify your buying process and improve your cycle time from ordering to receipt. Some typical examples of items that may qualify for this program include books, subscriptions, computer accessories, day planners, materials, tools, shop and office supplies, conference registrations, airfare, etc. Many items that you purchase today may be candidates for this program. The purchaser of such supplies is empowered to use the Purchasing Card to buy directly from preferred suppliers.
UVM’s Purchasing Department conducted a study of our purchasing process. The results indicate a majority of the items purchased account for a relatively small percent of the total dollars spent for purchases. The average cost to process a purchase order is $75 or more, which in many instances is more than the cost of the goods.
1.2.1 User Benefits
Using the card, you will be able to obtain goods much faster and easier than before. Paperwork and processing in Procurement Services and cardholders’ departments will be reduced. There will be improved accuracy of orders by eliminating reliance on others to place orders. These efficiencies will allow all groups and individuals involved to be more effective and focus on other important aspects of their jobs. Using the Purchasing Card may offer the cardholder more favorable pricing by providing enhanced leverage for future institutional purchasing negotiations.
1.2.2 UVM Benefits
UVM benefits from reduced paperwork and processing time by the user and in Procurement Services. This savings in time and money can be substantial. In addition, we will be able to reduce the number of checks processed to multiple suppliers by issuing one payment each month to Mellon Bank, our card provider.
1.2.3 Supplier Benefits
When you use your Purchasing Card, the supplier receives more timely payment, usually within 72 hours of receipt of the transaction information. Acceptance of a Purchasing Card for customer purchases also adds a new marketing strategy to the supplier’s sales portfolio.
Last modified June 30 2006 02:22 PM