You CAN Implement a One Card Program

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You CAN Implement a One Card Program
Its so painfully simple, we almost missed
it Julie Smith - Yellow Corporation May, 2002
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About Yellow

• 3 billion companyheadquartered in Overland
  Park, Kansas
• We ship stufftop LTL carrier in the nation
• Our employees25,000 strong
• 20,000 Union drivers, dockworkers, and
  administrative staff
• 5,000 non-union employees
• Sales forceprimarily ground based
• Broadest array of servicesdomestic,
  international, 3PL
• Best technology in the industry
• Outstanding safety record
• Unprecedented employee pride
• Yeswe ALL know its orange, not yellow

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About Our Card Program

• Single card program
• 3000 accounts serving executives, sales force,
  ops and P-Card
• Individual bill / company pay
• No MCC restrictions
• No cash advance
• Strong corporate card policy emphasizing
• Business use only
• Current-period accounting
• Card as primary payment method
• Few limits on card uselimited only by imagination

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Todays Menu

• Engage your one-card brain
• Previous environments
• TE policy, reporting, card program
• P-Card program
• Paper invoice accounting processes
• New solution
• Expense reporting
• One card implementation
• Results
• Tang

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Multi-card Brain

• MUST have separate cards
• Travel cant go on a P-Card, and vice-versa
• You get more travel data on a travel card than a
  P-Card
• Charge card transactions must populate G/L based
  on cardholder profile, MCC, or other static
  information
• P-Cards are for small dollar, high volume, misc
  expenses
• Paper invoices and expense reports are dissimilar
• Invoice controls are tighter than card controls
• Corporate liability cards are risky
• Rampant spending
• Runners

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One-card Brain

• Recognize current card overlaps
• Travel hits P-Card, P-Card hits travel
• Limitations on card use are only imposed by
  policy
• Charge card is a payment mechanism, just like a
  check
• Charge card transaction is an electronic invoice
• Paper invoices / charge card transactions are
  very similar
• Expense report is an automated expense coding
  tool
• Card controls are tighter than invoice controls
• Corporate liability card puts the company in
  control
• Cash flow / float
• Fraud protection
• Card limits

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Travel Card / Policy Before

• Policy / Reporting
• Vague policy frequent, consistent reporting
  violations
• Paper expense report
• Basic travel accounts misc expense lumped in
  travel
• Manager approval
• Weak receipt compliance
• No data repository or consolidated reporting
• No standard audit processes
• Separate travel card - 2500 cardholders
• Individual bill, individual pay
• Card abuse

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P-Card Program ... Before

• Separate P-Card policy and program
• Small dollar, high transaction purchases (some
  exceptions)
• No capital, no TE
• Central bill accounts - appx 3500 total
• Default account coding
• Ghost accounts
• No manager approval on expenses perceived lack
  of controls
• Card abuse

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Paper Invoice Process ... Before

• No purchase order system
• Signature approval on invoices no signature
  cards on file, no authority reviews
• Invoices routed to A/P for payment
• Coded for payment by A/P, not by approver
• Complex account coding matrix
• Miscellaneous expense gt 100,000,000
• Rework rate approaching 30

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Grasping the Concept ...

• Engage your one-card brain
• Recognize current card overlaps
• Travel hits P-Card, P-Card hits travel
• Limitations on card use are only imposed by
  policy
• Charge card is a payment mechanism, just like a
  check
• Charge card transaction is an electronic invoice
• Paper invoices / charge card transactions are
  very similar
• Expense report is an automated expense coding
  tool
• Card controls are stronger than invoice controls
• Corporate liability card puts the company in
  control

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Project Scope

• Simplify G/L
• Simplify invoice coding so it could be
  effectively redeployed to the origin of the
  expense
• Ensure that the same coding matrix is used for
  all expenses, regardless of payment mechanism
  (invoice, TE card, P-Card, etc.)
• Implement automated TE system
• Expand scope of expenses to include non-TE
• Map TE and P-Card transactions to expense
  reporting tool
• Combine card programs into single card

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Expense Reporting Tool

• Concur XMS
• Users select from drop-down lists for expense
  types
• Intuitive and descriptive
• Map automatically to our defined accounts
• Expense types match new invoice coding scheme
• Workflow routes expense report for manager
  approval
• Bar code scanning is used by AP to receive
  receipts
• System flags alert filers and managers to
  potential out of policy exceptions
• Dunning and e-mail messaging remind users to
  work data and managers to approve reports

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Critical Success Factors

• Vision
• Senior management support
• Right team
• Right business partners
• Execution
• Results
• Resilience

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One-Card Implementation

• Identify population
• TE card only, dual-card, P-Card only
• Profile applicants
• Expense reimbursement history
• P-Card spend
• Establish limits for each cardholder
• Submit applications to card provider
• Add card numbers to expense report system
• Distribute cards
• Update travel profiles
• Cancel TE card

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One-Card / Expense Report Controls Map
Yellow

• Program Level
• Merchant type
• Maximum
• Maximum
• Card design

• Card Control
• Merchant type
• Maximum
• Maximum
• User balance

• Transaction
• VISA Controls
• Level 11 111 Detail
• Baseline transaction feed to A/P

• Pre-pop
• Cant alter or delete
• Resolution is required
• Daily statement
• Self reconciliation
• Fraud detection

• Expense Report
• Self serve
• Better accounting
• Receipts are required
• Supervisor must approve
• Employee status
• Expense report status

• Payment Controls
• PeopleSoft Controls
• Reconiliation
• GL feeds
• Direct payment to VISA
• Out-of-Pocket reimbursement

• Audits
• Random
• Cowboy
• 100 list
• Nominees
• Best Result

• Reporting
• Brio
• User defined
• Pull reports
• Weekly updates
• Trend
• Decision Support

• Budget
• Finance Review
• Improved detail
• Accrual
• Accountability theme

• Feedback to Employee
• Discipline
• Accountability
• Responsibility
• Training

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Why One Card?

• Facilitated by
• Expense coding
• Expense reporting process
• Improves leverage on 100 million spend
• Actionable data
• Tighter expense controls
• Improved customer satisfaction
• Why One Card? Why Not?