Study reveals UK businesses are wasting time and money handling the payment process
The average UK business loses £88,725 per year through clunky payment practices causing friction in their supply chain, according to new research by Tungsten Network. This equates to almost 6,500 man hours chasing purchase order numbers, processing paper invoices and responding to supplier enquiries.
As Tungsten Network launches its inaugural Friction Index report, businesses estimate they spend on average per week around 55 hours doing manual, paper-based processes and checks; 39 hours chasing invoice exceptions, discrepancies and errors and 23 hours responding to supplier enquiries. They also spend five hours on compliance-related challenges such as handling international taxes and three hours tackling invoice fraud.
Rick Hurwitz, Tungsten Network CEO, comments: “Numerous processes in the financial world remain cumbersome and time consuming when they needn’t be. Technology means we can do away with the tiresome and menial tasks that clog business work streams and instead boost productivity and efficiency. It is surprising that in this tech enabled day and age businesses are still spending so many hours per week managing a process that could be automated.”
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 UK pay (£13.65) this means UK businesses are losing as much as £88,725 a year resolving payment issues.