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OK you are now an approved supplier—but you still do not get orders Understanding the case of the P-Card

By Subroto Roy

Abstract

The purchase card (P-Card) was introduced in the 1990s as a payment mechanism for smaller value items so that purchase paperwork is reduced, itemized reporting and control become possible, and purchasing and payment are decentralized at the user level. Since the late 1990s, with E-procurement and B-to-B E-commerce, the possibilities of P-Card use have magnified exponentially. However, the adoption and success of P-Cards in organizations has been short of initial expectations. Using P-Cards with approved suppliers is an ideal situation for both buyers and sellers. In practice however, many P-Card users seem to buy many items from suppliers who are not on the approved supplier list. To make payments to these ‘‘new’ ’ suppliers, organizations need to make exceptions resulting in paperwork, costs, and loss of business for approved suppliers. However, there are many P-Card users who indeed follow the company-approved list and these users may be called ‘‘P-Card conforming users.’’ This article takes a knowledge-based approach and presents a model for conforming P-Card use (CPU). The model is tested in an organization, and results are used to derive managerial and research implications. While orientation training of P-Card users is important, both business marketers and purchasing departments need to reach out directly to the P-Card user to ensure that approved supplier lists wor

Topics: P-Card, Purchase card, Knowledge-based view, Approved supplier, B2B E-commerce, B-to-B E-commerce, Electronic business processes, Organizational learning, Centralized purchasing, Decentralized purchasing
Year: 2003
OAI identifier: oai:CiteSeerX.psu:10.1.1.199.773
Provided by: CiteSeerX
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