Resolving Supplier Payment Bottlenecks: A Strategic Framework for Improving Disbursement Processes

Abstract

This study examined the supplier payment bottlenecks and their impact on disbursement management at Harbor Star Shipping Services, Inc. Specifically, it assessed the effectiveness of company practices in addressing payment bottlenecks in terms of throughput, operational expense, and inventory; analyzed operational challenges in disbursement management across cost, quality, service, and speed; determined the relationship between practices and operational challenges; and proposed a Supplier Disbursement Framework. A descriptive–quantitative design was employed, with data gathered from 87 purposively selected company personnel across branches and departments directly involved in supplier payments. Data were collected using a validated researcher-made questionnaire and analyzed through descriptive statistics, t-tests, ANOVA, and Pearson’s correlation. Findings revealed that company practices were rated “evident” but unevenly implemented, with operational expense management as the strongest area and throughput as the weakest. Operational challenges were assessed as generally “effective,” with service and speed rated highest, while cost remained the most vulnerable. Correlation analysis indicated a low but significant positive relationship (r = .367, p < .001) between company practices and operational challenges, confirming that inefficiencies in payment processes directly affect cost, quality, speed, and service outcomes. The study concludes that strengthening supplier payment practices is essential not only for financial accuracy and timeliness but also for overall operational efficiency. It recommends adopting automation, centralized monitoring, continuous training, and Lean Six Sigma methods to minimize bottlenecks and build a sustainable disbursement framework.