How Much Does Supplier Onboarding Cost You?
Supplier onboarding often feels like “just part of the job.” This calculator helps estimate what that work is actually costing your business each year.
Core Inputs
How many new suppliers do you onboard in a typical year?
Include net-new suppliers, not renewals.
0200
50
What percentage of those suppliers require compliance or verification documents?
Examples include W-9s, certificates of insurance, banking letters, regulatory or certification documents.
0%100%
60%
On average, how many total hours does your team spend onboarding one supplier (excluding compliance review)?
Think intake, follow-ups, data entry, approvals, and coordination across teams.
<1 hr40+ hrs
8 hrs
When compliance documents are required, how much additional time does that typically add per supplier?
Includes collecting documents, validating information, resolving issues, and follow-ups.
<1 hr40+ hrs
4 hrs
What is the approximate fully loaded hourly cost of the people involved in supplier onboarding?
Consider salary, benefits, and overhead across procurement, AP, legal, and operations.
$20/hr$100/hr
$55/hr
What percentage of suppliers typically require rework after initial onboarding?
Rework may include missing or incorrect documents, data mismatches, duplicate records, or additional approvals.
0%100%
20%
On average, how much additional time does each reworked supplier require?
Include time spent investigating issues, correcting data, and re-approving the supplier.
<1 hr40+ hrs
3 hrs
+
Advanced: Quantify Onboarding Delays & Downstream Impact
How long does supplier onboarding typically take from request to approval?
Measured in calendar days, not working hours.
1 day40+ days
14 days
What is the estimated cost of onboarding delays per supplier, per day?
This may include expedite fees, production delays, missed revenue, invoice holds, or operational disruption. If unsure, choose $0.
Estimated Annual Cost of Supplier Onboarding
Based on the inputs above, your current supplier onboarding process may be costing your organization approximately:
$0
Per Year
0
Total
Hours
Hours
$0
Avg Cost
per Supplier
per Supplier
0%
Rework
Rate
Rate
Labor baseline
$0
Compliance overhead
$0
Rework costs
$0
Delay & downstream impact
Not included
This estimate is directional and based on your inputs and conservative assumptions. Actual costs may vary based on process complexity and organizational structure.
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