American Express adopts First Technology solution

In a move to provide its customers and merchants with a sophisticated, affordable e-procurement-to-payment system, American Express Cards in SA has adopted a solution developed by Johannesburg-based First Technology.

The solution combines the convenience of American Express Cards virtual payment offering with First Technology`s revolutionary E-Procure online/offline e-business solution.

Julia Hayes, Manager: Procurement Development and Sales at American Express Cards, says American Express has developed a procurement and purchasing model aimed at low-value corporate purchases.

"Cards - virtual or physical - are issued to key purchasers in organisations with their own individual predetermined spend thresholds. Management information reports are provided to summarise items including spend by category, by cost centre and policy exceptions.

"By joining forces with First Technology, we can take this model to its logical conclusion, giving our corporate card members an integrated, affordable, cost-effective end-to-end B2B solution with full, multi-level workflow and electronic document management," she explains.

American Express Card members are able to "rent" First Technology`s E-Procure software on an ASP (application service provider) basis. First Technology hosts the software on the international AT&T backbone. (http://www.eprocure.co.za)

First Technology has developed the same software for the ACCXite E-Procure module as an add-on for ACCPAC, one of the world`s most popular accounting systems. The module is currently being made available to the 250 000 registered ACCPAC users via the global ACCPAC sales and marketing channels.

American Express Cards has joined the strategic business partnership with ACCXite to ensure maximum added value to small to medium businesses served by ACCPAC.

"The ASP model of E-Procure integrated with the American Express Cards` virtual payment solution, offers enormous benefits for buyers and sellers. Paying to use well-developed collaborative supply chain software offers greater value and returns on investment than developing one`s own extremely expensive fully integrated solution.

"Apart from the well documented advantages associated with e-procurement such as improved productivity, buyers gain a streamlined payment mechanism with line item detail, transaction cost reductions and the ability to control spend based on authorised limits.

"Sellers will see their cash flow optimised, and experience improved security associated with sales, as well as administrative savings and increased convenience."

Clark Coetzee, MD, i-Development Division at First Technology, believes the First Technology E-Procure`s association with American Express Cards offers a revolutionary way to realise the savings that e-business has long been threatening to achieve.

"These benefits have generally not been achieved due to three major problems:

* Issues relating to Internet usage;

* The `hidden` costs associated with e-marketplace membership and transaction fees; and

* Difficulties associated with integration to legacy back-office systems.

"Apart from addressing all these issues, E-Procure also provides SA businesses with a fully installed world-class e-procurement solution providing multi-level workflow and high levels of security, at a fraction of the cost of any procurement software currently available to the local market. In addition, local businesses will obtain a solution that complies with and incorporates SA business practices because the software was written in SA," Clark says.