(Rick Weissman – Supply Chain Drive)
Supplier payment remains a challenge for businesses, with slow internal processes and insufficient automation presenting the largest obstacles to payment efficiency, according to new research by Tungsten Network and the Institute of Finance and Management (IOFM).
The Friction Index — Tungsten and IOFM’s tool that assesses resistance found in business processes — revealed that 47 percent of companies surveyed confess that one in 10 payments go out late, 16 percent admit that one fifth of their payments are never on time, while only five percent of businesses can assert they always pay on time. One in 12 do not monitor their payment processes at all.
In addition to slow processes and lack of automation, the Index reveals that administrative errors, capacity to manage the sales volume and cash flow management are also top issues that prevent efficient payment to terms. Click here to read more.