1. Photo by Karl Steinbrenner Supplier Strategy Moving Vendors from Level 1 To Levels 2 or 3 Valerie J Smith, CPCP

2. NASACT 2008 Charge Card Administration 2 Supplier Strategy - Acquiring Bank/Merchant Service Providers Enables suppliers to accept and process charge cards. Provides training, set up, software and support for transaction processing. - Cardholders Cardholders, Buyers and Procurement representatives that purchase products, goods or services from the merchant. - Card Provider Issuing Bank for the Purchasing Card used by cardholders. Supplier Strategy:

3. NASACT 2008 Charge Card Administration 3 Supplier Strategy - Level I provides basic credit card purchase information including but not limited to; Supplier name, Merchant Category Code, Date and Total purchase amount. -Level II adds additional information to level 1 elements including but not limited to; Customer Code, Sales Tax amount, Vendor Tax ID, Outlet zip code and Minority & Women Owned Business status (MWOB). - Level III adds line item detail to level I and level II elements including but not limited to; Customer Code, Sales Tax, Item Description, Item Quantity, Item Unit of Measure, Product Code, Freight amount and Extended Item amount.

4. NASACT 2008 Charge Card Administration 4 Supplier Strategy - Level I Basic Data – Standard Interchange Cost, only transaction data passed to client, supports e-commerce initiatives -Level II Improved Data – Lower Interchange Costs, ability to send client limited line item information, supports e-commerce initiatives. - Level III Superior Data – Lowest Interchange Costs, ability to send client invoice level details, supports e-commerce initiatives, and ability to qualify for Large Ticket Discounts

5. NASACT 2008 Charge Card Administration 5 Supplier Strategy -Analysis of Data -Work with Card Provider to facilitate -Have it matched with Platform vendors -Return data with: - Matched – accepting -Un-Matched – not accepting -Level set up as – 1, 2 or 3 -Any additional data – Socio Economic

6. NASACT 2008 Charge Card Administration 6 Supplier Strategy -Ways to Match -Federal ID -Vendor ID -Name -Address

7. NASACT 2008 Charge Card Administration 7 Supplier Strategy -Analyze Vendor Volumes -Volume -Transaction Count -Average transaction cost

8. NASACT 2008 Charge Card Administration 8 Supplier Strategy -Design Target Audience – Phase #1 -Vendors with -High transaction counts -Low transaction costs

9. NASACT 2008 Charge Card Administration 9 Supplier Strategy -Design Target Audience – Phase #2 -Vendors with -Low transaction counts -High transaction costs -If that level of volume can be on a card

10. NASACT 2008 Charge Card Administration 10 Supplier Strategy -Design Target Audience – Phase #3 -Vendors with -State Contracts -Recurring Charges

11. NASACT 2008 Charge Card Administration 11 Supplier Strategy -Determine Target Group Size -Critical to be a success -Can do a blast letter mailing – very low response -Limiting Size to enable personalization -Get a buyer to participate

12. NASACT 2008 Charge Card Administration 12 Supplier Strategy -Targeted Letter, Call or Face-to-Face -Decide based on your phases -Should we do a letter followed by a call -The letter gives a Heads up so it does not seem as a cold call -Should we just do a letter -Normally low response rate -Should we do a vendor fair -Invite a small group of vendors -Have provider assist

13. NASACT 2008 Charge Card Administration 13 Supplier Strategy -Follow Up -You must have follow up to be a success -Always follow up with vendors -They are busy people too -Remind them of the financial benefits