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suppliers
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- Prompt payment
- Satisfaction with relationship
- Fair treatment
- Effective communication
- Long-term relationship
Ensure that at least 85% of suppliers agree:
- that the bank pays promptly. TARGET ACHIEVED
- that they have a good working relationship with the bank. TARGET ACHIEVED
- that the bank is fair and reasonable in its dealings with them. TARGET ACHIEVED
- that there is effective two-way communication between themselves and the bank. TARGET ACHIEVED
- that the bank maintains a long-term relationship with them. TARGET ACHIEVED
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performance
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Suppliers' response to statements concerning their treatment by the bank
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Agree strongly |
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Agree |
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Disagree |
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Disagree strongly |
 |
Don't know |
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Very satisfied |
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Satisfied |
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Not very satisfied |
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Not at all satisfied |
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Don't know |
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Suppliers' response to statements concerning their treatment by the bank
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Agree strongly |
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Agree |
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Disagree |
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Disagree strongly |
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Don't know |
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Agree strongly |
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Agree |
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Disagree |
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Disagree strongly |
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Don't know |
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Agree strongly |
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Agree |
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Disagree |
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Disagree strongly |
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Don't know |
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Agree strongly |
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Agree |
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Disagree |
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Disagree strongly |
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Don't know |
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How the bank compares with other companies suppliers deal with 
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Very favourably |
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Quite favourably |
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Not very favourable |
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Not at all favourable |
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Don't know |
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Very favourably |
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Quite favourably |
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Not very favourable |
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Not at all favourable |
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Don't know |
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Very favourably |
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Quite favourably |
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Not very favourable |
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Not at all favourable |
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Don't know |
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Very favourably |
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Quite favourably |
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Not very favourable |
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Not at all favourable |
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Don't know |
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commentary
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Satisfaction According to suppliers, the main benefits of their
relationship with the bank are derived from: having a
prestigious client (40%); obtaining regular work (31%);
receiving income (28%); and working with a credible client
(20%). Overall levels of satisfaction have remained exceptionally
high, with 95% of suppliers being very or quite satisfied. The
main reasons for satisfaction are: good working or long-term
relationship (23%); generally good service (easy to deal with,
good communications, prompt payment, etc.) (49%); and
personal relationships (14%). The bank reports again this year
on the four issues suppliers have indicated as their priorities.
Again, across the board, suppliers indicate exceptionally high
levels of satisfaction particularly when comparing the bank to
other companies they have a relationship with.
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Payment policy The bank is a signatory to
the Better Payment Practice Code i.
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 also complies with the Late Payment Act, introduced
in August 2002. The bank aims to pay suppliers within 30 days
of the invoice date. The bank takes an average of 35 days to
pay, with 78% of invoices paid within the desired 30 day
period. Overall, the bank regards this performance as
satisfactory with queries concerning disputed or missing
invoices being the main cause of payment outside of the 30
day period. 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. By comparison, a recent study
by Experian ii found that companies take an average of 60 days
to pay invoices, and large financial services companies take an
average of 74 days.
Outsourcing In 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 cases, FSA review is required
before any contract can be agreed. In response, the bank
updated its Outsourcing Policy and Standards. Major
outsourced contracts are overseen by a senior manager (Head
of Central Risk Management) and a 'relationship manager' has
been designated for each major 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.
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- www.payontime.co.uk
- www.experian.com
To follow any of the links mentioned within the Partnership Report 2002, please visit the links page.
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new targets
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Ensure that at least 85% of suppliers agree:
- that the bank pays promptly
Richard Goddard, Executive Director, Finance and Risk
- that they have a good working relationship with the bank.
- that the bank is fair and reasonable in its dealings with them.
- that there is effective two-way communication between themselves and the bank.
- that the bank maintains a long-term relationship with them.
Ken Lewis, Executive Director, Resources, CFS/John Sheerin, Head of Procurement and Supplier Management
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