Procurement & Supply Chain Management Policy
Procurement & Supply Chain Management Policy – Effective from 1st January, 2021.
K M Group 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 Group 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 Group’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 Group 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 business performance, 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:
K M Group’s approach to Ethical and Responsible Procurement is based on the following Key Principles:-
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 Group’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:
The Procurement and Supply Chain Management Team are responsible for:
Personnel are responsible for:
Vendors and Suppliers are responsible for:
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:-
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:-
Our Commitment Managing and Mitigating Risk
K M Group 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.
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