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UK supplier relationships more mutually beneficial, study finds

Friday 4 October 2019 14:08 CET | News

New research from Barclaycard Commercial Payments has painted a picture of the changing dynamic between UK buyers and suppliers.

 

According to the research findings, three quarters of businesses communicate more openly with suppliers about business strategy. Additionally, seven in ten corporates are looking for longer-term supplier relationships than five years ago. 65% of business are now more concerned about the reputational damage caused by late supplier payments.

Almost half (48%) of procurement teams contact preferred suppliers at least once a week. However, there is still more to be done; when looking at how procurement professionals could improve their supplier relationships, the number one response was for businesses and suppliers to ensure they understand each other’s strategic priorities (32%).

The research found that six in ten (61%) businesses are more concerned about paying suppliers on time than they were five years ago, which could be as a response to increasing pressure from government to pay smaller suppliers within their agreed payment terms.

Respondents said that they currently pay suppliers on schedule 73% of the time, on average. When asked why they might not meet the agreed payment terms, three in ten (30%) cited slow internal processes as one of the main reasons. The same proportion (30%) said that they would like to simplify their procurement processes to ensure suppliers are paid more quickly, in order to improve supplier relationships.

 

 


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Keywords: Barclaycard Commercial Payments, research, commercial payments, B2B payments, supply chain management, supplier payments, payments, late payments, supply chain finance
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Countries: World