3.4 Creating successful supplier relationships

We understand the importance of building mutually beneficial relationships with our suppliers. By securing best value goods and services through good procurement practice, we can directly improve our business performance.

We manage 3 types of supplier relationships: our Group Procurement team manages our Group-wide contracts, procurement specialists in our businesses manage purchasing at a local level and we now also directly manage some of our clients’ supplier relationships.

Our procurement policies and guidelines, supported by our procurement manual, state how we manage our procurement and supply chain, to meet both financial and CR targets. Where we undertake procurement on behalf of clients, it is still important to follow the principles of these policies.

We view supplier diversity as an opportunity that makes sound business sense. We recognise that our suppliers play a key role and are an important source of new ideas, innovation and support, irrespective of size, background or composition.

Suppliers who register on our ‘Capita supplier programme’ are questioned on their culture and values, environmental credentials, health and safety record and commitment to corporate responsibility. We have recently reviewed this programme and will be launching a new enhanced supplier registration system during 2009.

We have a wealth of experience in working with subcontractors and partners, using their specialist skills to deliver appropriate, responsible and cost effective services. Under our subcontracting policy we apply stringent criteria when selecting subcontractors and once selected, they work within a fully integrated delivery and reporting framework. This gives our clients full visibility and control of performance regardless of our subcontracting arrangements.