Do you know if your procurement and supply chains have been set up to the required rigorous standards? If they are not you could face legal consequences, incur significant costs and experience breakdowns in supply.
95% of all major spend projects fail on scope, budget or time.
There are four key areas of your procurement and supply chains that deserve careful consideration and need to be set up according to legislation and best practice:
2. Value for money
4. People skills
Compliance, Regulatory and Legislation
To avoid any legal consequences your organisation must comply with the Anti-Slavery Day Act of 2010 preventing child trafficking, forced labour and domestic servitude.
An issue that catches out organisations is diversity and inclusion. Companies must comply with Equality Act (2010) under which companies are legally required not to discriminate against employees or potential employees due to issues of race, gender, age or disability.
Then there’s the thorny issue of GDPR. Is the data you hold on individuals compliant to the rules of GDPR, are they stored securely and are they confidential?
Whilst Corporate Social Responsibility (CSR) is a voluntary initiative for which no legislation has been enacted, most companies and organisations have adopted CSR policies such as environmental, ethical and philanthropic. Employees, customers and suppliers tend to view a company more favourably if it abides by strong CSR policies.
Value for money
Achieving the best value per pound spent is a key procurement objective. Are your supply budgets under control? Can you prove your supply chain suppliers are competitive? Your authority levels control your budget and spend.
Are contingencies in place to obviate procurement and supply chain risks such as a breakdown in supply which can impact on production, customer service and profit? Are your supply chains assured?
Without the right skill base your procurement and supply chain employees will not be able to operate effectively. Do you regularly assess the ability of your staff to fulfil their responsibilities?
Procurement Central has launched a consultancy service to advise businesses in Kent on all these issues. The team at ProcureKent carries out audits of procurement and supply chains and recommends any necessary changes to ensure a business does not fall into any of the traps described above. The company also manages external contractors and third parties based on its Olympic Games experience:
· Delegated authority and authorised spend management that manage budgets and control costs
· Running and evaluating tendering and evaluation of contracts with full transparency
· Ensuring ethical procurement rules and due diligence are complied with when contracting with external third-party suppliers including full compliance with legal regulations and law
· Implementing Governance with specific policy and procedures
· Awarding contracts to suppliers that deliver results through key performance measurements
· Designing optimal structures and roles for buyers and ensuring that your procurement people and function are qualified and equipped to minimise risks
· Recruitment and evaluation of candidates with relevant skills
· Implementing formal Contracts and agreements including Contractual reviews and supplier audits to ensure your contract and contractors are performing to your requirements and assurance all your controls are fully operational and compliant
· Sustainable and socially responsible supply chains
As Procurement Central is the premier provider of procurement and supply chain training courses and consultancy, it is ideally positioned to your staff ensure they fulfil their roles effectively. Click here to find out more about our new consultancy and audit services provided by our expert team.