The Prescription for Card Program Success

The Prescription for Card Program Success

Marzena MaloszyckaSVP, North America Travel Product

Manager

Citibank

Paul CipolloneAssoc. Director, Global Lead-

Expense, Corp. Card, & Pcard

Bristol-Myers Squibb

Dr. Sara FriedlanderDirector, Enabling Services

Global Procurement

Bristol-Myers Squibb

Agenda

• Defining the goals and challenges

• Addressing the challenges

• Enjoying the benefits

Knowing there's a team of caring experts gives me hope and lets me embrace a life not defined by my disease.Mitra Ghandeharizadeh

Awaiting a treatment option for her autoimmune disease; her mother Faranak Nikfar is a BMS Research Fellow working toward that goal.

“

”

To discover, develop and deliver

innovative medicines that help patients

prevail over serious diseases.

Our Mission

how we work together for patients

The very best company known for

• transformational medicines

• superior competitive performance

• energizing work experience

• uncompromising ethics

OUR

Our Vision

AccountabilityInnovationPassion Speed

Our Strategic Foundation

Diversified Specialty BioPharma

Best of BIOTECH

Best of PHARMA

I N N O V A T I O N

Focused and Integrated

The Best PEOPLE helping patients in their fight against serious disease

1. Defining the goals and challenges

What was the Challenge?

▪ Employees were compelled to use personal cards▪ Difficult and time consuming expense report reconciliation process

▪ Lack of visibility into travel and meeting spend

▪ Insufficient controls

▪ Very manual process to provide adequate reporting to the Government/Authorities

Consequences

Globally inconsistent Travel and Meeting card acceptance

What was the Ultimate Goal?

Total spend visibility

Fraud preventionStreamline process for

Program Management

Increase rebate earnings

Improve card acceptance Convenience for employees

One Card Provider, One System,

One Process

What was the Solution?

New card provider with truly global coverage and great card acceptance across

various programs to address employees’ and company’s needs

Global Cards Program Considerations

Embedding Payments into Existing Business Ecosystem

❑ Direct integration with the ERP systems

❑ Payments integrated into operations and business flow (3rd –Party FinTech

Platforms):

• Corporate Travel Technologies

• Procurement and E-catalogues

• E-invoicing Solutions

• Business and Operations Platforms

Multiple Billing Types: Individual or Central

❑ Individual Bill Corporate Pay (IB/CP)

• Company pays only approved business expenses

• Preferred model for T&E cards

❑ Corporate Bill Corporate Pay (CB/CP): Entire bill is paid regardless of expense

submission

• Employee receivable management (owed to card or owed to company)

• Purchasing cards are typically CB/CP

Global Footprint and Currency Choice: Local or USD

❑ Local Currency card programs can reduce the amount FX fees

• Some countries tax foreign currency card spend

❑ International Payment Cards (IPC) are available in selected markets

Contracting: Regional and Local

❑ Template agreements for each market or region

• Regional contracting versus in-country

• Local contracting may require in-country support

• One contract per legal vehicle

• Credit-based product governed by the applicable laws and regulations for

the relevant market

To implement a Global Cards program, key decisions need to be made that will guide the program.

2. Addressing the Challenges

Conducting the RFP

Partnered with

Indirect Procurement

Preferred Bank Group

Member

Evaluated 5

Programs Using

Scoring System

Short Listed 3

Programs

Conducted on-site

Interviews

Benchmarked with

Other Companies

Interviewed

Customers

Made

Selection

Socialized Decisions

RFP Scoring RankCategories of Questions Weighted for Importance

Rank

Geography 1

Card Program Specifics 2

Service Level Agreement 3

Security and Governance 3

Account Support/Customer Service 4

Reporting Capabilities 4

Pricing 4

Other Program Options 5

Company Specific 5

Key Differentiators & Decision Points

Global Capacity

Innovative

Technology

Global

Consistency &

Efficiency

▪ Single point of contact

▪ Global customer service

▪ Single integrated card management tool

▪ Seamless integrations with T&E system – Concur/SAP

▪ Fraud prevention and audit technology

▪ Chip & Pin technology

▪ Globally consistent tools

▪ Global and customizable reporting

▪ Executive level reporting module

Aligning the Resources

❑ Dedicated project managers

❑ Business

❑ Systems

❑ Citi

❑ Technology participants including SAP/Concur

❑ Program administrator designations, regional ownership

❑ Engagement with travel providers

❑ Aligned Treasury/HR/IT/Finance/Legal/Leadership, globally

Our Contributions to the Success

❑ Working on a Roadmap

❑ Global rollout

❑ Program types and controls

❑ Tools

❑ Executing

❑ Teams

❑ Responsibilities

❑ Tracking

Cardholders as of May 18, 2016 - Snapshot

LATIN AMERICA

Country Cardholders

Int’l Paym't Cards (USD)

•Chile 34 ( 23 % )

• Peru 28 ( 0 % )

• Venezuela 18 ( 13 %)

By Country

• Argentina 170 ( 0 % )

• Brazil 223 ( 0 % )

• Columbia 70 ( 0 % )

NORTH AMERICA

Country Cardholders

U.S. / P.R. 10,106 ( 5 %)

Canada 315 ( 17 %)

Country Cardholders

•Austria - 72 ( 95 % )

• Belgium 257 ( 14 % )

• Denmark 46 ( 28 % )

• Finland 32 ( 6 % )

• France 905 ( 38 % )

• Germany 604 ( 0 % )

• Ireland 299 ( 115 % )

• Italy 548 ( 14 % )

• Netherlands 79 ( 25 % )

• Norway 32 ( 88 % )

• Portugal 47 ( 104 % )

• Spain 187 ( 9 % )

• Sweden 98 ( 21 % )

• U.K. 640 ( 16 % )

• Czech Republic

30 ( 6 % )

• Greece 54 ( 24 % )

• Hungary 25 ( 6 % )

• Poland 72 ( 22 % )

• Switzerland 91 ( 1 % )

• Romania June 2016

• Turkey June 2016

EUROPE

MIDDLE EAST/AFRICA

ASIA PACIFIC

Country Cardholders

• Australia 222 ( 1 % )

• Taiwan101 ( 11

%)

• Thailand 10 ( 9 % )

• Hong Kong 20 ( 0 % )

• Singapore 27 ( 23 % )

• South Korea 201 ( 0 % )

• India 7 ( 72 % )

• Japan June 2016

Country Cardholders

Int’l Paym't

Cards (USD)

• Kuwait 4 ( 300%)

• Oman 2 ( 100%)

• Qatar 2 ( 33 % )

• Saudi Arabia

56 ( 22%)

• UAE 43 ( 43 %)

By Country

• Israel 10 ( 71 % )

• South Africa

23 ( 12 %)

Legend:

Green = roll-out complete

Blue = roll-out in process

Black = to be implemented

Estimate 97% of new cards are issued as part of the roll-out

Cards Project Overview

Co

un

trie

sC

ard

ho

lde

rsS

pe

nd

ing

Co

vera

ge ▪ Low Card acceptance outside US

▪ High Out of Pocket and use of Secondary Cards

▪ Additional manual effort by employee to report OOP expense

transactions

▪ Total spend up/Out of Pocket spend down 5% (Jan-May 20, YOY)

▪ Results:

▪ Improved Productivity (esp. Field Sales)

▪ Increased compliance

▪ Improved visibility on spend

▪ Increased rebate due to greater card usage

Co

mp

lexi

ty

▪ 50 countries managed by BFS

▪ 27 individual people

▪ 3 FTEs (2.7 BFS; 0.3 Market)

▪ 15,995 cards issued

▪ Cards issuance contingent on employee’s personal credit

▪ 7 markets with secondary card

▪ 15,814 cards issued

▪ Cards issued based on company’s credit

▪ Only Mexico and China have not transitioned

▪ 1 agreement with limited coverage ▪ Global Procurement, BFS & Legal collaboration on 53 BoD resolutions

▪ Treasury & BFS collaboration on 60 separate banking & credit

agreements

▪ 350 documents required

▪ 5 countries managed by BFS

▪ 45 countries managed by market resources

▪ 54 individual people/7.33 FTEs

Prior Issuer Current Issuer

Re-evaluating the suppliers and their

processes

❑ Travel Management Companies

❑ Reviewing their whole payment systems and engaging their merchant banks to transmit

information that helps improve matching and enhances expense control

❑ Hotels

❑ Air Carriers

❑ Restaurant

Card Solutions

❑ T&E

❑ Virtual Card Account

❑ Central Travel Account

❑ P-Card

Communication

❑ Stakeholder communication (including across regions)

❑ Cardholder communication and training

3. Enjoying the Benefits

Benefits to BMS❑ Better acceptance

❑ Happier traveler

❑ Reduced risk

❑ Improved control and visibility into spend

❑ Mitigation of overspend risk

❑ Reduced manual reconciliation by employees

❑ Increased efficiency and productivity

❑ Cost savings and higher rebate

❑ Improved company’s cash flow

❑ Freed up vital resources

Size of the Benefits

❑ Shift from out-of-pocket expenses to Citi’s T&E Card:

❑ BMS EU 24% in spend, 22% in the number of transactions

❑ BMS APAC 8% in spend

❑ BMS LATAM 7% in number of transactions

❑ VCA solution to mirror the PO limit = reduced adjustments by approx. 30%

❑ Reduced expense report time by 30min/report = $245,313 cost savings

Benefits to Travelers

❑ One method of payment

❑ No need to use personal cards

❑ Reduction in manual reconciliation

❑ Improved productivity

Takeaways

❑ It can be done and it can be done in short period of time!

❑ Make use the right stakeholders are included right from the beginning

❑ Stay focused

Q&A