Innovation In Action
For The American National Red Cross
Swiftly Implemented Purchase Card Program Improves Efficiency and Control
The American National Red Cross, the nation's premier emergency response organization since 1881, provides humanitarian care for victims of war and natural disasters, community services for the needy, support for military members and their families, collection and distribution of blood and blood products and educational programs promoting health and safety. As a non-profit organization, the Red Cross relies on donations to fund its mission.
Working with Citi, the central treasury of the American Red Cross had enjoyed the centralization, control and efficiency of a Purchase Card program for eight years. Recently, Citi's client undertook an ambitious undertaking — to expand the program to its many local chapters throughout the United States.
Of course, most of these chapters were entrenched within their communities, and thus dependent upon relationships with local banks. To provide incentive to come on board, Treasury hoped to quickly implement each chapter, rapidly increase its annual spend on cards, then share the anticipated rebates with those chapters. Current pricing and spend tiers would also need to be adjusted to include the potential spend achieved through this expansion.
Citi's already-proven rapid response program was a natural fit — and it addressed the client's urgency. After offering an attractive pricing renegotiation, based on projected increased spend, Citi delivered a quick and painless implementation, helping 320 local chapters come on board within months.
Red Cross and Citi's solution enabled an increase in card spend of $60 million, with a proportionate increase in float, securing healthy rebates for the client and its chapters. Efficiency in the procurement process improved dramatically. For every transaction that moves from paper check to commercial credit card payment, a forward-thinking company can save $30 per transaction. In addition, the central Treasury now takes advantage of a new benefit it never enjoyed before — a more accurate view of its procurement spend, particularly across its many local chapters.