A new survey shows organizations struggle with conventional business-to-business payment processes that are complex, error-prone and labor-intensive.
The study, published earlier this month, surveyed more than 100 corporate finance professionals in the U.K. Half of survey respondents said they work with more than 500 vendors, while about a third said they work with more than 2,000 on a regular basis. More than two-fifths of those surveyed, processed more than 2,000 invoices every month, and more than a third spent as much as $342 million every month on supplier payments.
More than a third of survey respondents said as much as 40 percent of their supplier invoices involved a dispute, a supplier chasing money or other issues that required manual intervention and interaction. Nearly half said these interactions involved between one and five employees. Some 16 percent of survey respondents said this interaction required more than 36 people to get involved — underscoring the wasted time and manpower associated with the need for manual invoice and B2B payment processes.
Every single survey respondent in the telecoms, oil & gas, travel & leisure, pharmaceuticals & biotech and personal goods industries said they accidentally misdirected or duplicated a supplier payment. Nearly half (49 percent) of survey respondents overall said they made this kind of supplier payment mistake “on occasion.”
On average, the value of a misdirected supplier payment was more than $4 million a year. More than $55 billion in supplier payments were paid late, threatening companies’ reputations and vendor relationships. What’s more, companies spent a combined $68.8 million on reconciliation processes, with a tenth of survey respondents deploying 50 or more employees to this area of operations.
B2B payments are fraught with friction and inefficiency, which is why we set out to change this – and change we have. Inspyrus offers the most innovative and comprehensive payment automation solution on the market. Inspyrus Total Pay transforms the massive ad expensive efforts of paying suppliers into a simple and automated solution, providing a single process for managing all payments and streamlining reconciliation.