- Pay your suppliers in line with the contract terms
- Be proactive in paying them and following the 'Treating Suppliers Fairly' guide
- Resolve disputes quickly
- Encourage organisations to sign up to the Code
Once
approved, you have the benefit to use the PPC logo. The approval process reply
one a few references to be authorised.
But, will
the PPC initiative actually change anything? Many companies see “unfair
contract terms” as the real issue. Players with market autonomy use their authority
to force struggling and small suppliers into unfavourable contract terms, or delay
the resolution of terms to delay payment. A cultural shift is needed for change
to take effect.
The
challenge at hand is a cultural one and only likely to be solved through strong
leadership. Time to step away from the herd…
Michael Fallon MP, Minister of State for Business and Enterprise.
“Prompt payment is critical to the cash flow of every business, and especially to smaller businesses within the supply chain. But it is not just the timeliness of payment, though fast payment is always welcome, but rather the certainty of getting paid that is really important, and enables businesses to plan both for their short and longer term futures.
The Prompt Payment Code is about encouraging and promoting best practice between organisations and their suppliers. Signatories to the Code commit to paying their suppliers within clearly defined terms, and commit also to ensuring there is a proper process for dealing with any issues that may arise. This means that suppliers can build stronger relationships with their customers, safe in the knowledge that they will be paid, and confident that they are working with a business that values the service they deliver. Independent analysis by Experian suggests that current signatories to the Code represent over 60% of total UK supply chain value, so the Code is making a difference.
Certainty on payment inspires confidence across the supply chain - confidence that stimulates investment and growth. This confidence is good for both suppliers and customers.”
The Prompt Payment Code is about encouraging and promoting best practice between organisations and their suppliers. Signatories to the Code commit to paying their suppliers within clearly defined terms, and commit also to ensuring there is a proper process for dealing with any issues that may arise. This means that suppliers can build stronger relationships with their customers, safe in the knowledge that they will be paid, and confident that they are working with a business that values the service they deliver. Independent analysis by Experian suggests that current signatories to the Code represent over 60% of total UK supply chain value, so the Code is making a difference.
Certainty on payment inspires confidence across the supply chain - confidence that stimulates investment and growth. This confidence is good for both suppliers and customers.”
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