Large UK manufacturers lost £58 million due to preventable issues with their supply chain last year.

A study by risk management company Achilles found such problems cost firms an average total of £105,000 per business. The biggest cause of disruption was the poor quality of products, which hit the industry to the tune of £20.4 million. 

The inability of suppliers to deliver their goods on time was the second most expensive problem, setting manufacturers back £17.2 million. Meanwhile, the financial failure of companies further up the supply chain was also a major factor, costing the industry £7 million.

Adrian Chamberlain, chief executive of Achilles, commented: "This research shows that manufacturers are paying a heavy price for supply chain failures, many of which could be prevented."

The study found although poor quality was the most expensive issue, it was not the most common. Some 54 per cent of respondents reported this problem, while 61 per cent of manufacturers were affected by the failure of suppliers to deliver their products on time.