Supply Chain Payment Practices: Barely Any Movement in 2021 With Average Score Creeping Up Just 0.6 Points

The Comparison

Here's a snapshot of supply chain payment practices based on data from 2020 and 2021:

• 2020: Analyzed across 80 companies, the average payment score landed at 54.1 out of 100. This benchmark reflects payment behaviors observed during a period heavily impacted by initial pandemic disruptions.
• 2021: The analysis covered 67 companies, showing a slight increase in the average payment score to 54.7 out of 100. Fewer firms were analyzed, perhaps indicating increased scrutiny, although sample size changes can skew results.

What This Means

The marginal 0.6-point increase in the average payment score from 2020 to 2021 suggests that payment behaviors within supply chains remained largely unchanged during this period. While any improvement is nominally positive, this near-static performance indicates persistent challenges, possibly related to ongoing economic uncertainties impacting cash flow for many firms. Businesses concerned about the impact of late payments on their bottom line can use a late payment calculator to assess the true cost.

One-line summary: With 67 companies surveyed in 2021 averaging 54.7 out of 100 compared to 80 companies surveyed in 2020 averaging 54.1, very little changed.