We spend two thirds of our revenues in procuring goods and services from our supply chain partners, making them an invaluable resource to our business, our customers and the communities we work in.
As we deliver some of the largest and most complex construction and infrastructure projects, along with projects at the heart of local communities, our Procurement Strategy sets out how our supply chain partners can help deliver our five values of Lean, Expert, Trusted, Safe and Sustainable, making it clear what we expect of those who we work with and what we hold ourselves accountable to. It has seven principles:
- Become the customer of choice for the best of the supply chain by being easy to do business with
- Ensure that we have the right, skilled people for the job, a strong talent pipeline and that we provide an environment where they excel
- Put in place processes that work, are compliant and transparent, making the best use of technology to deliver for our business and for our supply chain partners
- Mitigate and manage risk through early and closer integration with our supply chain partners
- Work together to identify market risks and sharing forecasts that enable early commitment and investment where it is needed
- Keep safety and wellbeing at the forefront of all that we do – it underpins every relationship, transaction and choice that we make.
Prompt payment of our suppliers
Balfour Beatty works with c.12,500 supply chain partners across the UK, processing around 500,000 invoices every year. We know how important it is to our supply chain partners that we pay them on time and to mutually agreed terms and we remain focussed in our efforts to do so. As signatories to the UK Government’s Prompt Payment Code, we comply with the principles of the Code.
Since 2015, we have visibly streamlined and improved the systems and tools used in the planning, delivery, progress tracking and payment of supply chain partners with the introduction of Tradex, which provides an e-invoicing platform, supplier invoice status portal and Constructionline.
We continue to embed these digital processes and tools, which also include Jaggaer and DocuSign. This allows us to cut the red tape, improve reliability and speed up payment, to ensure that supply chain partners are being paid on time. This also ensures that they are supported and our sustainable procurement priorities and requirements are being met and tracked.
These processes and systems are helping us to continue to improve our payment days and enhance our accuracy and transparency including the implementation of catalogue software for a number of key supply chain partners. Moving our supply chain partners onto payment terms of 60 days or less and, from 1 July 2021, paying organisations with less than 50 employees in 30 days or less. Through the use of electronic invoicing and approvals, we have increased the percentage of invoices paid within 60 days to 92% from 91%.
We are committed to paying our supply chain partners on time to mutually agreed terms. Our target is to increase the percentage of invoices paid within 60 days to 95%.
For more information on our processes for paying supply chain partners, please visit our Supply chain partner payment page.