NASACT Conference

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NASACT Conference
American Express? Purchasing Solutions

• Mark Ferguson
• mark.ferguson_at_aexp.com
• American Express Corporate Services
• November 15, 2004

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Agenda
Agenda

• Business Solution
• Purchasing Solution Clients
• Applications
• Process Efficiency
• Through Information Solutions
• In Partnership
• Driving Bottom-Line Results
• Questions and Answers

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Vision for Expense Management
Business Solution
American Express offers integrated expense
management solutions focused on cost reduction,
process improvement, and use of technology to
drive bottom-line results for our customers.
American Express Solutions Negotiation Support
and Resources On-Line Program Management On-Line
Purchasing Tools _at_ Work Expense
Management Real-Time MIS Tools

• Industry Trends
• Rational Supplier Management
• Electronic Distribution Channel
• Electronic Commerce
• Expense Reporting Automation
• Timely, Actionable Information

Mission To become the worlds most respected
business-to-business brand
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Purchasing Solution Clients

• Commonwealth of Virginia
• Alabama Department of Education
• State of Arizona
• Miracopa County
• Scottsdale City
• Yuma County

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Corporate Expense Applications
Applications

• Flexible Card Options
• Spending Controls
• Billing and Payment

convenience utility control
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Flexible Card Options
Applications

• Corporate Purchasing Card
• Departmental Account
• Supplier Card / Ghost Account
• E-payment Account

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Point of Sale - Controls
Applications
Signing Authority

• Transaction Limits
• Monthly Limits
• Budgetary Limits (CDEP)
• Industry Restrictions (TE)
• Department/Supplier/Project Cards

Preferred Suppliers
Budgets

• Preferred Supplier Restrictions
• Dual Card Limits / Budget Limits
• Back-end Audit through Web Reconciliation

• Benefits to The Public Sector
• Channel Preferred Suppliers
• Monitor Compliance
• Customize at the Card/Supplier Level

American Express Exclusive
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Billing and Payment
Applications

• Central Billing and Payment
• 30-day billing cycle
• Payment due within 14 days of billing cycle cut
• Average float 29 days
• Monthly Billing Statements
• Consolidated Billing Statement
• Cardmember Statement
• Payment Methods
• Electronic Funds Transfer
• Automated Clearing House
• Check

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Applications
Program Applications

• Event Spending
• Legal Projects
• Flexible Spending Accounts
• Infrequent Travelers
• Meetings
• Transportation / Tolls
• Facilities
• Capital Projects
• Healthcare Benefits
• Charitable Donations
• Temporary Employees
• Uniforms
• Internet Fees
• Construction/Site Development
• Movie Projects
• Visa Immigration Process
• Insurance Claims
• Customer Care Applications

• Everyday Spend
• Professional Expenses
• Consulting Projects
• Seminars
• Marketing Funds
• Out-sourced Projects
• School Athletics
• Security Programs
• Interns
• Professional Development
• Licensing
• Field Agents
• Dining Projects
• Rewards Recognition
• Disaster Recovery Teams
• Publications

• Project Spend
• Relocation
• Trade Shows/Conferences
• Virtual Office Expenses
• Office Supplies
• Education/Training
• Recruiting
• Sales Promotional Funds
• Contractors/Freelancers
• Marketing Projects
• Research
• Petty Cash
• Sales Force Expenses
• Promotional/Sales Events
• Co-op advertising Funds
• Incentives Bonuses

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Process Efficiency
Process Efficiency

• Streamlined Purchasing Process
• Extensive Supplier Network
• Dedicated Supplier Enrollment Resources

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Traditional Purchasing Process
Process Efficiency
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Streamlined Purchasing Process
Process Efficiency

• Decentralized Ordering
• Decentralized Receiving
• Decentralized Invoice Reconciliation
• Centralized Payment

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Streamlined Purchasing Process
Process Efficiency

• Achieve even greater process savings by combining
  e-commerce solutions with Corporate Purchasing
  Card payment

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Extensive Supplier Network
Process Efficiency

• Worldwide Acceptance at Over 7 Million
  Establishments
• Corporate Procurement Supplier Acceptance
• Over 78,000 suppliers provide enhanced data
  (Level II)
• Accepted by over 90 of Purchasing Magazines Top
  50 MRO suppliers
• Key Partnerships with Leading E-Purchasing
  Providers

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Dedicated Supplier Enrollment Resources
Process Efficiency

• National Account Sales
• Field Account Sales
• Want to Honor Group

We have really discovered that most of our
suppliers already accepted American Express and
those that havent, have been eager to sign
up. ARCO Products Company Procurement
Specialist The American Express Corporate
Purchasing Card makes us more efficient and makes
us a value-added supplier to customers. W.W.
Grainger, INC. Region Sales Manager
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Through Information Solutions
Through Information Solutions

• Data Capture Process
• Management Reporting Tools
• Data Integration Tools
• Program Management Tools

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Data Capture Process
Through Information Solutions

• Unique Closed Loop Network Structure

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Data Capture Process
Through Information Solutions

• Data Accuracy
• American Express accuracy rate 99
• Comprehensive Level II/III Data Capture
• Line Item Detail (Select Commodities/Suppliers)

• Represents Level II/III Enhanced Data

Source McDonough Consulting, 2003
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Through Information Solutions
Enhanced Data Capture

• Over 73,000 Supplier Locations Supply American
  Express with Full Level II Data and Substantial
  Level III Data
• Bank Cards Capture Full Level I, Limited Level II
  and no Level III Data

Level I
Level II

• Standard Data Capture
• Basic transaction information
• Date
• Amount
• Supplier

• Enhanced Data Capture
• Additional features
• Sales tax
• Cardmember reference number
• Ship to zip code
• Minority/women owned business and 1099 status
• SIC codes
• Four lines of descriptive information ? 160
  characters
• Basic transaction information
• Date
• Amount
• Supplier

Level III

• Line-Item-Detail
• Detailed information on items purchased typically
  captured on an invoice
• Enhanced transaction information with detailed
  data useful for general ledger integration, tax
  and reconciliation purposes
• Includes but is not limited to
• Unit Price
• Quantity
• Freight/Handling
• Asset Number
• SKU
• Split Shipments/Shipment
• Total Meter Count
• Service Credits
• Tax Type Code
• Supplier Reference Code

These represent American Express definition
of enhanced data.
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Commodity Applications
Through Information Solutions

• Overnight Mail
• Airbill number
• Origin/Destination airport
• Service level code
• Assessorial charge -(Saturday pick-up, etc.)
• Assessorial code
• Receiver name, city, state, zip
• Sender name, city, state, zip
• Actual weight
• Charge weight

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Data Integration Tools
Through Information Solutions

• Quickly automate reconciliation processes
• Web-based no software needed
• Daily data pre-populated
• American Express implementation teams
• American Express provides 1st level product
  support to Program Administrator
• Increase PA and end user convenience and
  productivity
• Correct individual accounting and other reference
  codes for transactions based on rights.
• Split transactions by amount or percentage
• Enhance transactional data with additional data
  elements (comments, etc.).
• Mark individual transactions with basic status
  information
• Received, partially received, or not received
• Client definable status information
• Reduce accounting costs
• System creates an output file When file is then
  integrated into a clients financial system,
  client can pull reports from their financial
  system
• Integrates with multiple ERP systems.

Product Introduction
Corporate Purchasing Reconciliation from American
Express _at_ Work automates the entire
reconciliation process
CPC Reconciliation
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American Express _at_Work ? Business Center
Through Information Solutions

• Online Program Management
• Online Information Services

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Online Program Management
Through Information Solutions

• Submit and Approve Corporate Purchasing Card
  Applications
• Cancel Card Accounts
• Manage Cardmember Profiles
• View Cardmember Charges
• Change Accounting Information

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Online Information Services
Through Information Solutions

• Portfolio?/Web
• Download and review MIS reports
• Sort and filter management information
• Query and analyze management information

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Account Management
In Partnership

• Manager of Account Development
• Account Servicing Plan
• Investigating needs and business strategies
• Assessing expense management performance
• Identifying improvement opportunities
• Developing an account plan to articulate and
  prioritize goals
• Measuring performance against the plan
• Providing periodic account reviews
• Coordinated Support and Resources

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Account Servicing and Technical Support
In Partnership

• Account Servicing
• Corporate Purchasing Card Implementation Manager
• Corporate Purchasing Card Customer Service
  Representative
• Client Forum and Industry Function Coordinators

• Technical Support
• Technology Consultants and Installation
  Specialists
• GIS Help Desk Specialists

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Corporate Purchasing Card Program Benefits
Driving Bottom Line Results

• Company Savings
• Efficient management of the purchasing process
• Effective supplier management
• Integrated process automation
• Comprehensive purchasing and regulatory data
• Enhanced efficiencies through a single source
  solution
• Employee Satisfaction
• Enhanced productivity
• Superior service

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Driving Bottom Line Results