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The Co-operative Bank*
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Delivering Value |  Indicators |  Partnership Report 2001 |  Our Performance |  Home
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Financial Statements 2001

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Delivering Value : Suppliers
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suppliers
  1. Suppliers: prompt payment of bills
  2. Suppliers: satisfaction with relationship
  3. Suppliers: fair treatment
  4. Suppliers: effective communication
  5. Suppliers: long-term relationship [NEW INDICATOR]
Suppliers

Ensure that at least 85% of suppliers agree:
  1. that they have a good working relationship with the bank. TARGET ACHIEVED Tick
  2. that there is effective two-way communication between themselves and the bank. TARGET ACHIEVED Tick
  3. that the bank is fair and reasonable in its dealings with them. TARGET ACHIEVED Tick
  4. that the bank pays promptly. TARGET ACHIEVED Tick
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performance
Suppliers' level of agreement with the following statements concerning their treatment by the bank
* Agree strongly * Agree * Disagree * Disagree strongly * Don't know
How the Bank Compares with Other Companies Suppliers Deal With
* Very favourably * Quite favourably * Not very favourably * Not at all favourably * Don't know
Overall how Satisfied are Suppliers with their Relationship with the Bank
* Very satisfied * Quite satisfied * Not very satisfied * Not at all satisfied * Don't know
commentary
Benefits and satisfaction According to suppliers, the main benefits of their relationship with the bank are derived from: receiving income (35%); obtaining regular work (30%); having a prestigious client (29%); and working with a credible client (24%). Overall levels of satisfaction with the bank remain high, with 92% of suppliers being very or quite satisfied. The main reasons for satisfaction are: no problems experienced (26%); good personal relations with bank contact (25%); sound policies operated by bank (19%); and good working relationship or long term relationship (16%). The bank reports again this year on the four priority issues of prompt payment, good relationship, effective communication and fair treatment. In all four areas, the bank's performance has improved on the high standards reported in 2000. In addition, the bank's performance in all four areas is rated more favourably than other companies, with performance in all aspects improving on performance in 2000. *
Payment policy The bank is a signatory to the Better Payment Practice Codei and, to the best of its knowledge, complies with all requirements. Signatories to the code promise to agree payment terms at the outset of a relationship, explain their payment procedures to suppliers, pay bills in accordance with any contracts agreed with the supplier or as required by law, tell suppliers without delay when an invoice is contested and settle disputes quickly. The bank aims to pay suppliers within 30 days of the invoice date. The bank aims to resolve queries concerning missing or disputed invoices as quickly as possible with the supplier. Those handling supplier relationships are given practical advice to ensure prompt payment can be achieved and are provided with information on the average time it takes to pay individual suppliers. The bank takes an average of 35 days to pay suppliers. Overall, the bank regards this performance as satisfactory. Benchmark By comparison, a recent study by Experianii found that companies take an average of 60 days to pay invoices, and large financial services companies take an average of 80 days.

Long-term relationships Given the comments made by the Centre for Tomorrow's Company in its expert commentary last yeariii, the bank reports on suppliers' satisfaction with the length of their relationship with the bank.

Outsourcing During 2001, the Financial Services Authority (FSA) reviewed its standards for the management of major outsourcing contracts. These cover both existing and new contracts, and in the latter case, FSA review is required before any contract can be agreed. In 2001, the bank updated its Outsourcing Policy and Standards. A 'relationship manager' has been designated for each major outsourcing contract. In total, five outsourcing contracts fall under the new FSA standards, covering Cheque and Credit Clearing, ATM Management, IT Development and Service, Credit Card Processing and Bullion Services. 		*
Better Payment Practice
  1. www.payontime.co.uk
  2. www.experian.com
  3. www.co-operativebank.co.uk/ethics/ethical_partnership.html
    To follow any of the links mentioned within the Partnership Report 2001, please visit the links page.
new targets
Ensure that at least 85% of suppliers agree:
  1. that the bank pays promptly
    Richard Goddard, Head of Financial Accounting

  2. that they have a good working relationship with the bank
  3. that the bank is fair and reasonable in its dealings with them
  4. that there is effective two-way communication between themselves and the bank
  5. that the bank maintains a long-term relationship with them
    John Sheerin, Purchasing and Facilities Manager

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The above data and commentary has been audited by ethics etc...