K M Plant Hire & Groundworks Ltd.
Procurement & Supply Chain Management Policy
Procurement & Supply Chain Management Policy – Effective from 1st January, 2021.
K M Plant Hire & Groundworks Ltd. appreciates that diligent Supplier selection and ongoing performance management in business, is both prudent and wise, and is essential in upholding quality standards across the business.
K M Plant Hire & Groundworks Ltd. (‘K M Plant’) acknowledges and recognises the principle areas of risk that exist within its areas of commercial operation, and seeks to avoid, reduce or mitigate such risks with careful stewardship of its engagements. K M Plant’s Procurement and Supply Chain Management operates a strict regime of Ethical Sourcing and Due Diligence upon the Supply Chain, and applies PAS 91 processes to the selection and maintenance of all approved Vendors, Subcontractors and Suppliers. This is monitored on an ongoing basis and subject to annual review.
The purpose and scope of this Procurement Management Policy, governs the way K M Plant works with the selected Suppliers – Vendors, business partners and third parties, including Subcontractors. The Policy applies to all personnel who procure from Suppliers, in all areas of operation, across Directs and Indirects.
The Policy objectives take into account that K M Plant seeks to deliver and provide excellent services at value costs, and acknowledges that our Suppliers are pivotal in achieving this. The management of our Procurement processes and Supply Chain, has a significant potential ‘Bottom-Line’ impact on our profitability, our industry perception and reputation, and also in our success towards meeting our ethical sourcing and sustainability objectives. Using high quality vendors, business partners and third parties gives K M Plant commercial flexibility and agility, and is also integral to the sustainable delivery of client commitments as the business scales.
The principal objectives of this Policy are to:
Make sure that Suppliers comply with Policy and Legal requirements (including areas such as Finance, Health and Safety, Human Rights, Labour engagement standards and employment Law, etc.);
Identify the risks associated with using particular Suppliers and manage these risks to an acceptable level;
Ensure that the roles and responsibilities of Vendors/Suppliers are clearly defined and adhered to; and
Ensure that the way K M Plant supplies, delivers and develops their products and services reflects the sustainability objectives of K M Plant and those of customers and Clients.
K M Plant’s approach to Ethical and Responsible Procurement is based on the following Key Principles:-
Upholding Ethical business practices and complying with all relevant Legislation;
Being an informed, aware and intelligent Customer/Client.
Understanding the risks and complexities of the services K M Plant procures.
Ability to respond to performance issues and address or resolve appropriately.
Influencing the priorities of key Suppliers to align with K M Plant’s and those of our Clients
Ensuring a sustainable service can be provided to K M Plant’s Customers and Clients.
Ensuring Equal Opportunities, Diversity and Inclusion is embedded within the whole Supply Chain.
Requirements in respect of Supplier selection:
Appointment of Suppliers must be based on their ability to perform as defined for the mutually agreed terms, in addition to taking into consideration such factors as social values, ethical sustainable practices and environmental impacts. All terms must be agreed on an ‘arms’ length principle’ basis, and comply with the prevailing Policies and Legislation.
This is managed through K M Plant’s PAS 91 quality and compliance assurance on-boarding procedure. All Suppliers are in turn encouraged to monitor the sustainable credentials of their own suppliers, and assist those who require support in achieving and optimising this.
Management of Contracts:
Supplier Contract Performance Management must address the key issues. These include defining our expectations, the Vendor’s understanding of their obligations, contract related performance, scope of work, and any deliverables. In particular, confirmation is sought regarding the comprehension of and adherence to, the following fundamental Policies: Ethical Sourcing and business practices, Supply Chain sustainability, Equal Opportunities, Diversity and Inclusion, Social Responsibility, Data and Information responsible curation in GDPR/DPA compliance, responsible physical asset management, fully compliant Health and Safety. All Vendors must take appropriate measures to protect our physical and intellectual property, proprietary information and data, in the interests of transparency, include a right of verification and Audit access.
Equal opportunities for small and medium sized businesses, minority owned businesses, social enterprises and the voluntary and community sector, etc., will be provided;
Management of Subcontracting:
Ensure that any right to Subcontract included in the contract, is bound by the same terms and conditions, and is expressly agreed and approved by the Contract Manager, prior to inception or commencement. Before Subcontractors are appointed, a Risk Assessment must be carried out, and any required mitigation measures put in place;
A defined Governance structure in put into place to manage key strategic and core suppliers; and
Monitoring of Suppliers:
Suppliers are monitored to ensure that the Supply Chain risk is managed within the terms of our Risk Management Policy.
The Managing Director is ultimately responsible for the engagement into the Procurement and Supply Chain Management function, of a suitably qualified, competent and experienced Procurement and Supply Chain Management professional, and undertake over-arching Governance via reviewing, monitoring, endorsing and facilitating the achievement of this Policy’s aims.
The Procurement and Supply Chain Department is therefore responsible for the administering this Policy on behalf of the Managing Director, and for developing and rolling-out the supporting methodologies, mechanisms and strategies to drive continual performance improvement and responsible curation on the Supply Chain and Procurement function.
All personnel involved in the Procurement function are responsible for:
•Driving, adopting and sharing best practice purchasing and supply standards and initiatives;
•Developing mutually beneficial collaborative trading relationships with suppliers which increase the accountability (including environmental performance) of the Supply Chain; and
•Monitoring the evaluation and assessment of Supplier’s supply practices (including ethical, sustainable measures, etc.), taking appropriate commercial action as necessary.
The Procurement and Supply Chain Manager is responsible for:
•Ensuring that this Policy, supporting procedures and corrective actions are implemented and complied with; and
•Leading by example in protecting the K M Plant brand and championing beneficial knowledge sharing across the business divisions;
•Implementing and enforcing the supporting processes and procedures;
•Undertaking effective Supplier performance and Supply Chain sustainability evaluation and applying corrective actions where necessary;
•Ensuring that all personnel are aware of their responsibilities under the respective Policies and legislation, etc. and receive appropriate guidance, support and training to fully comply; and
•Addressing any inappropriate behaviour or Policy breaches.
Personnel are responsible for:
•Carrying out their work in line with this Policy and any associated procedures, and legislation;
•Challenging any behaviour that falls short of the expectations of this and any other Policy; and
•Identifying any breaches of this and any other Policy and reporting them to their Line Manager.
Vendors and Suppliers are responsible for:
•Acting in accordance with this Policy and any associated procedures, following legislation and official guidance.
What will successful implementation of this Policy achieve?
•Governance and adherence to our Policy, procedures and controls is evident; and
•Any commercial activity and contract management audits confirm compliance with the policy.
In further support of the Policy, the following measures are applied in due diligence:-
Financial Intelligence is garnered and referenced in respect of potential suppliers and Clients, to minimise risk exposure to the implications of poor payment behaviours, and to verify supplier stability and related sustainability of supply.
The following checks are undertaken initially and ongoing:-
Financial Stability and Credit Worthiness assessments via Credit Assist (Dun & Bradstreet)
Director Checks via Companies House Webcheck system
Internet Searches for potential areas of concern or risk exposure
Consultation with Trade Credit Insurance Brokers for Industry Intelligence via The Channel Partnership
Review of PAS 91 Subcontract supplier applications against acceptable criteria
Technical and Legal review of proposed Contract(s) and any subsequent alterations from Clients
Reference where applicable to external professional Advisers or Trade Bodies
Active monitoring of the economic markets and sector of supplier operations
Initial and ongoing reviews of the Suppliers terms of business for currency and appropriateness
Review of the supplier’s self-governance and any Social Responsibility factors
Care is taken to apply optimum appropriate resourcing to the Procurement function, with the most suitably qualified and experienced personnel applied to the management of each aspect. Care is taken to ensure all respective personnel involved in the procurement function, are suitably qualified, experienced, trained and supported, to ensure they can manage their aspect of the Procurement function effectively and efficiently.
To mitigate risk and promote safe and efficient working, the following is applied:-
All personnel (whether part-time, full-time or temporary), are equipped with the necessary skills and resources for the effective performance of their role(s).
All personnel also receive appropriate training to ensure they are correctly trained, skilled and qualified for the work they undertake, and a Gap Analysis is undertaken annually.
Risk Assessments and Audits are undertaken across the business and through the Supply Chain to ensure compliance with this and any other applicable Policy.
Supplier/Vendor performance is measured against agreed terms and any identified shortfall is challenged.
Ongoing liaison with Suppliers and Vendors is undertaken to address any sub-optimal performance issues.
Regular Toolbox Talks and Team Briefings are provided to ensure all internal personnel are fully aware of their responsibilities towards full compliance with applicable legislation and company policies, etc.
A culture of awareness and knowledge-sharing is encouraged for all personnel to provide mutual support in respect of ensuring all Polices are complied with across all operations of the business.
Policies are reviewed and where applicable revised on at least an annual basis for compliance, currency and suitability.
Policies are in place for the management of Risk, and active monitoring is undertaken in support and enforcement.
Our Commitment Managing and Mitigating Risk
K M Plant Hire & Groundworks Ltd. endeavours to provide a safe and efficient working environment, within which professionalism, appropriate diligence, care and best practice are present in all aspects of operational activity. All personnel are actively encouraged to proactively seek to avoid, reduce or mitigate Risk wherever possible, within all the functions of the business, and to support their colleagues in this common objective accordingly.