As we continue to explore performance-centric metrics within the Procure-to-Pay (P2P) lifecycle, it’s time to turn our attention to an often-overlooked, yet highly revealing area – Supplier Queries. These queries, while seemingly routine, serve as a pulse-check on how well your systems and processes are functioning from the supplier’s perspective.
What Are Supplier Queries?
Supplier queries arise when vendors reach out for assistance after delivering goods or services and submitting invoices. These queries can take many forms. The majority – nearly 50% to 60% – revolve around basic status inquiries. Suppliers want to know: Has the invoice been received? When is payment expected?
A second group of queries is related to master data changes. These could include updates to the supplier’s name, address, VAT details, banking information, or key contact personnel. Another common category involves disputes, such as disagreements over short payments, VAT application errors, or mismatched payment terms.
Late payment reminders make up a smaller portion of queries, often driven by overdue amounts. Occasionally, suppliers also reach out to communicate changes in their own financial policies, though this is relatively rare.
Why This Metric Matters
The number of supplier queries raised within a given period – compared to the total volume of invoices processed – is a revealing metric. Ideally, fewer than 10% of invoices should generate queries. A higher rate signals inefficiencies, lack of transparency, or potential breakdowns in communication.
Supplier queries don’t just consume time and resources. They can erode trust, slow down operations, and disrupt the predictability of cash flow management. More importantly, they often point to deeper systemic issues – such as data inaccuracies, unclear communication, or inefficient workflows – that need to be addressed.
How to Reduce Supplier Queries Proactively
The most effective way to reduce queries is to empower suppliers with real-time information. Implementing supplier portals can be transformative. These platforms offer visibility into invoice status, payment schedules, and other key details – helping vendors self-serve instead of chasing your Accounts Payable team for updates.
Regular analysis of incoming queries also helps identify recurring patterns. Are certain suppliers more likely to raise issues? Are particular types of invoices more prone to disputes? By conducting regular reviews, finance teams can uncover root causes and develop clear, corrective action plans.
Rather than treating each query as an isolated incident, it’s more effective to view them as part of a broader performance narrative – one that reveals whether your internal systems are functioning with accuracy and clarity.
Harnessing the Power of Digital Dashboards
To manage this effectively, organizations are increasingly turning to visual analytics tools such as Power BI and Tableau. Whether built manually or automated through integration with ERP systems, dashboards provide an immediate overview of invoices in progress, pending actions, and emerging trends.
These dashboards offer more than just data – they provide context. With a clear view into supplier behaviour and internal performance, finance teams can respond faster, resolve issues earlier, and reduce the likelihood of repeated queries.
Building a Stronger Supplier Experience
A low volume of supplier queries is not just a sign of operational excellence; it’s an indicator of strong vendor relationships. At Right Path Global Services, we support organizations in reimagining how supplier communication is handled – bringing visibility, structure, and accountability into the process.
By addressing the root causes of queries and leveraging technology for better transparency, businesses can build smoother, more resilient P2P operations – where suppliers feel informed, valued, and confident at every step.
