Why 72% of Companies Miss Costly Supplier Errors — And How AI Auditing Fixes It

72% of Companies Miss Supplier Errors

According to an audit by The Hackett Group, 72% of mid-to-large enterprises overlook supplier pricing errors during invoice processing. These aren’t rounding mistakes — they’re recurring, systemic discrepancies that quietly bleed millions from company budgets each year.

Yet most procurement and finance teams don’t realize it until it’s too late.

If you rely on manual audits, spot checks, or outdated systems to verify supplier pricing and invoices, you’re leaving your company exposed — and normalizing avoidable financial leakage in your supply chain.

Why Supplier Mistakes Are Costlier Than You Think

The Hidden Financial Impact

Invoice and supplier errors often go unnoticed for months or even years. When they do surface, they’re rarely addressed retroactively — let alone systemically. The result?

• Overcharges on line items that don’t match contracted rates

• Duplicate payments due to slight PO/invoice mismatches

• Unverified suppliers submitting falsified billing or incorrect pricing

• Missed rebates or tiered pricing incentives

A Deloitte study found that 3–5% of supplier payments contain errors, and 80% of those errors favor the supplier.

For a company spending $1M annually with vendors, that’s $30–5O thousand in silent losses.

The Reputation Risk

It’s not just about the dollars. These mistakes:

• Undermine trust with internal stakeholders

• Compromise audit readiness

• Delay month-end and year-end close processes

• Strain supplier relationships when errors are caught late

In today’s volatile markets, tight procurement oversight isn’t optional — it’s essential.

How AI Auditing and Price Monitoring Solve the Problem

AI doesn’t get tired. It doesn’t overlook decimal points. And it doesn’t skip verification steps under pressure.

3rd Armor’s AI auditing platform uses intelligent automation and real-time data to catch invoice mistakes before payments go out — and before finance eats the cost.

Real-Time Invoice Validation

Using machine learning, our invoice audit software reviews every invoice line item against:

• Contracted rates

• Historical pricing

• Approved supplier catalogs

• Volume discount thresholds

This ensures price compliance on every single transaction — without extra headcount or late-month crunch time.

Continuous Supplier Verification

Our tools also provide ongoing supplier verification, ensuring vendors:

• Match payment terms and agreed-upon pricing

• Maintain updated certifications and compliance credentials

• Aren’t engaging in fraudulent billing practices

This protects against both malicious fraud and accidental oversight — automatically.

Your Next Step: See It in Action

Every month without AI auditing could mean millions lost to undetected supplier errors.

In a 30-minute live demo, you’ll:

• Watch 3rd Armor’s platform flag price discrepancies in real time

• See exactly how supplier price monitoring works across all invoices

• Learn how leading businesses are protecting margins without adding headcount

📅 Don’t let the next payment cycle lock in avoidable losses.

👉 Book your personal demo today and take control of supplier compliance before it costs you again.