CANADIAN BLOOD SERVICESPROGRAM GROWTH

Linda Dyck

Manager, Corporate Accounting Canadian Blood Services

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Canadian Blood Services

Agenda

• Canadian Blood Services

• Card Programs

• Growth process

• Key Messages

• Questions

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Canadian Blood Services

Who we are:

-Not-for-profit, charitable organization

-Mission is to manage the blood and blood products supply for Canadians

-Manages the ‘One Match’ Stem Cell and Bone Marrow Network

- Operates 41 permanent sites, 11 bone marrow centres, approximately 4700 employees across Canada

- Collects approximately 850,000 units of blood annually

- Holds in excess of 2000 ‘mobile’ clinics annually

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Canadian Blood Services

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Canadian Blood Services Card Program

•Background of our Program:

•Two card program- Purchase card and Travel card

•Program Implemented in October 2006

•Moved from a manual based system to electronic expense report system

• Diverse skills from administrative to medical

•Approximately 2000 card holders

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Card Distribution in Canada

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Purchase Card Growth

Year Transactions Average transaction Total Amount (000’s)

2006-2007(first yr) 3925 $241 $947

2007-2008 17,469 $212 $3,699

2008-2009 16,997 $237 $4,036

2009-2010 17,560 $256 $4,504

2010-2011 16,924 $272 $4,596

Projected 2011/12 16,275 $294 $4,790

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Travel Card Program

Year Transactions Average transaction

Total Amount (000’s)

2006-2007 5,380 244 $1,312

2007-2008 26,901 182 $4,898

2008-2009 30,376 189 $5,750

2009-2010 32,026 185 $5,941

2010-2011 33,427 180 $6,023

Projected 2011/12

30,100 180 $5,427

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Reasons for Success of Program

Policies •Purchasing , Travel and Corporate Card

Cardholder/Approver Support-•mandatory training •cardholder guides available on-line•training follow-up•feedback on expense envelops•monitor “problem cardholders”•on-line communications•dedicated webpage

Audit•unassigned transactions •tracking/reporting deviations •one time vendors•transaction analysis

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Cont’d

Communication

•regular communication to cardholders/approvers/ business

•policies

•newsletters

•survey

•benefits of program

Reporting

•monthly reporting to management & approvers

•supply management

•auditors

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Training

Training

• In person

• Conference call/webinar

• Remedial and/or new cardholder

• Mandatory cardholder/approver training

• Available through on webpage

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Growth Potential Identified

Steps:•Payment files review

•Numerous low dollar invoices under $1000 & low risk purchase orders

•Encourage new vendors to accept payment by corporate card.

•Work with accounting and purchasing to use Visa as payment method when feasible

•Identify existing Accounts Payable Vendors who accept Visa for payment.

•Work with business partners to promote usage of Purchase card and Travel card whenever feasible.

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Growth Potential

Ghost Cards:

•Implemented ghost cards at 100 hotels across Canada

Benefits

• No manual invoice entry• No new vendor setups • Efficient invoice processing• No past due or late charges• Convenient• Vendor is reimbursed more quickly• Opportunity for discounts with hotel chains

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Growth Potential

Designated Visa cards by vendor:

-Used to pay for goods and services for specific projects.

Benefits:•Drives dollars onto card program•Eliminates vendor setup in SAP•Eliminates cost of issuing a cheque •Secure control of transaction onto card•Visibility to transaction on card within 24 hours

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Growth of Card Program

Currently CBS has a large number of employees that submit mileage claims, we are encouraging the use of rental cars to drive additional dollars onto the card program and reduce costs for CBS by 40% when a rental car is used for trips over 200km.

Name / Centre # of mileage claims $ of mileage claimsJOSEPHINE, TORONTO 29 8,900.11 DONNA, GTA 28 12,815.57 EILEEN, TORONTO 25 6,150.75 KASH, TORONTO 25 6,307.96 JANICE, GTA 23 9,507.57 MARYSA, TORONTO 22 4,863.18 KELLY, GTA 21 8,547.63 MARLENE, GTA 21 9,316.68 ANNETTE, TORONTO 19 7,909.44 SHARON, GTA 19 9,417.28 DEBORAH, TORONTO 18 2,245.36 CHERYL, TORONTO 17 4,637.54 GRACE, TORONTO 15 1,962.02 JULIE, TORONTO 15 2,023.77 ADEL, GTA 15 5,803.99 LEN, TORONTO 14 2,873.92 HELEN, TORONTO 14 2,446.97 MARGO, GTA 13 5,994.97 TOM, TORONTO 13 751.46 CRYSTAL, GTA 12 3,488.15 GARY, GTA 10 153.46 HILLAREY, TORONTO 9 3,126.10 KURT, TORONTO 9 1,065.54 WAYNE, GTA 5 1,953.57 TERESA, TORONTO 5 705.16 JOHN , GTA 4 384.20 TRUDY, GTA 24 5,393.27 TOTAL 128,745.62

Example of mileage(one years worth of mileage expenses)

Potential Savings: $128,745 X 40% = 51K

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Future Opportunities

Utilities –Card provider should work with utilities for card acceptance at a business level

Landlords- monthly rent transactions

Business continuity- Cards available for use in event of disaster

Conference & meetings- Centralize organization of meetings and payment of all expenses

G L O B A L T R A N S A C T I O N B A N K I N G2011 Scotiabank Commercial Card Conference

Questions?

Resources:• Card provider • 2011 Corporate Card Travel Benchmark Survey

Richard Palmer and Mahendra Gupta

• NAPCP• GBTA

Thank you for your time and interest.