Businesses waste 6,5000 hours per year due to supply chain friction

Thursday 14 September 2017 13:00 CET | News

A study by Tungsten Network has revealed that US businesses lose USD 171,340 per year due to poor payment practices causing friction in the supply chain.

Tungsten Network has launched its inaugural Friction Index report to explore which companies are most affected by friction in the supply chain. According to the report, businesses estimate they spend on average 55 hours per week doing manual, paper-based processes and checks; 39 hours chasing invoice exceptions, discrepancies and errors and 23 hours responding to supplier enquiries. 

The sources of friction identified by the report amount to 125 hours per business per week or 6,500 hours per year. When multiplied by the average hourly US pay (USD 26.36) this means US businesses are losing as much as USD 171,340 a year resolving payment issues. 

The report shows that 36% of businesses have named removing friction from the payment process as a top priority for 2017. However, 20% state that this is not a priority, something that the report’s authors claim is an indication that the scale and costs of the problem is largely unseen. 

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Keywords: Tungsten Network, supply chain finance, invoicing, e-invoicing, supply chain friction, payments, US
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: World
This article is part of category

Banking & Fintech