The use of commercial cards has been growing steadily, and adoption has become widespread across healthcare and higher education institutions. Commercial cards can provide numerous benefits, including greater operational efficiencies in procurement processes, cash savings through card issuer rebate programs, increased visibility in spending patterns, and potential vendor discounts where purchases can be consolidated.
The benefits of a commercial card program do not materialize automatically; institutions must put appropriate policies and processes into place and make use of the information available from commercial card utilization to realize the full benefits of the program. Successful programs will have finance, treasury, accounts payable, and supply chain functions all on the same page to maximize the value to individuals and the organization.
Health systems, colleges, and universities are among the institutions that have been most affected by the COVID-19 pandemic and are more cognizant than ever of the value of each dollar. An effective commercial card program is a key component of an optimal treasury infrastructure and can help these institutions become better stewards of the funds entrusted to them to pursue their missions.