UK COMPANIES are wasting more than £9.8 million and nearly 850,000 man-hours every year, according to a new expense management study from American Express Commercial Card.
Nearly half (47 per cent) of the companies polled by Amex still use "manual or mostly manual processes" for dealing with expense claims. Only nine per cent use wholly-automated systems. More worrying, suggests Amex, is that 33 per cent of UK senior decision-makers admit they do not know what benefits, if any, a corporate card and expense management system can bring. Only 15 per cent thought they might save money.
Mimi Kung, American Express Commercial Card vice-president and general manager said: "While many decision-makers appreciate that the manual handling of purchasing and expenses is expensive and time-consuming, our research indicates that many companies are just not aware of the alternatives."
Amex says that the 843,682 wasted man-hours - valued at £9,871,082 - is almost certainly an under-estimate as it takes no account of process mistakes, nor of the time taken to complete expense forms.
However, expense systems provider KDS insists companies are catching on fast as the recession prompts yet more cost-cutting measures. The company says the economic crisis has led to a surge in sales enquiries.
"We have the wind in our sails because companies are actively seeking cost killers," says KDS chief executive Yves Weisselberger.