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Managing our supply chain

We have a diverse supply chain, spending £1.8bn a year with 34,500 suppliers, so good procurement practices and the purchasing decisions we make have a direct impact on our business performance.

We want the goods and services we buy to be provided by suppliers with the highest ethical standards, who meet our supplier requirement standard.

At the same time, we encourage diversity among our suppliers, treat them fairly, deal with them openly and stick to our contract terms.

Through our policies and procedures, we can ensure the effective management of supply chain risks, work with suppliers to ensure we adapt to the needs of our clients, and procure goods and services cost effectively.

Responsible sourcing

In 2016, we developed a new procurement policy and standard which set out our approach and key principles. Our supplier requirements standard sets out our expectations of suppliers and their supply chain, ensuring that both Capita and our suppliers comply with the changing regulatory and legal landscape in which we work.

70%

of our supplier base are SMEs

Supplier auditing

We use an external online assessment tool to audit our material suppliers (those with which we spend over £1m, or based on the products or services they supply and where in the world they operate) and in 2016 we completed audits for 51% of these suppliers. We will continue to audit all material suppliers and work with them where necessary to ensure that they improve their performance and meet the standards we expect.

In addition to this, our due diligence toolkit was developed and will be rolled out in 2017 – initially to all new suppliers and then to our existing ones. The toolkit assesses a number of areas including suppliers’ labour practices, adherence to the Modern Slavery Act, environmental performance and data protection. If a supplier’s response highlights a potential risk area, we will work with the supplier to ensure they meet our standards.

 

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