Page "Purchasing" Paragraph 4

Another method of decreasing administrative costs associated with repetitive contracts for common material, is the use of company credit cards, also known as " Purchasing Cards " or simply " P-Cards ".

P-card programs vary, but all of them have internal checks and audits to ensure appropriate use.

Purchasing managers realized once contracts for the low dollar value consumables are in place, procurement can take a smaller role in the operation and use of the contracts.

There is still oversight in the forms of audits and monthly statement reviews, but most of their time is now available to negotiate major purchases and setting up of other long term contracts.

These contracts are typically renewable annually.