To improve cash management, streamline procurement processes and eliminate costs associated with manual paper-based processes
University System of Ohio has selected JP Morgan to provide purchasing card services for its member institutions. The university expects that the five-year agreement will improve cash management, streamline procurement processes, and eliminate costs associated with expensive manual paper-based processes.
Reportedly, the agreement leverages the group purchasing power of all 14 Ohio public universities and 23 community colleges. It has said that currently its members spend some $250 million a year using purchasing cards. It would like to add more universities and colleges to a single purchasing card program and work with JP Morgan to expand the number of vendors that accept card purchases. It has further added that studies show that using purchasing cards can save schools an average of $110 per transaction and reduce procure-to-pay time by six days.
According to the university it will use JP Morgan’s online PaymentNet management tool which provides account administrators with the ability to monitor card usage in real-time, pre-assign and modify spending limits, reconcile transactions with the university’s financial reporting system, and run more than 70 detailed transaction reports, such as vendor analysis, unusual activity analysis, travel or catering spending, and delinquency reports. Additionally, cardholders within the system can also monitor their transactions online, allowing improved oversight of departmental budgets.
There are currently 8,700 cardholders within the University System of Ohio. Eight schools are currently contracted with JP Morgan, which will allow for speed deployment and immediate member savings under the aggregate purchasing plan. Moreover, the purchasing cards facilitate the purchase of items valued under $1,500 without the need to use petty cash, purchase orders or out-of-pocket funds. In addition, substantial use of the purchasing cards for travel-related services that all colleges and universities incur on a routine basis is anticipated.
Eric Fingerhut, chancellor, said: “The University System of Ohio is finding more opportunities to be efficient every day. I applaud the IUC’s (Inter-University Council of Ohio (IUC) Purchasing Group and the procurement staff at Ohio University for leading this effort that will help the University System focus its resources on serving students.”