Use of minority groups and local suppliers

Objective: Encourage use of local suppliers and suppliers with minority group ownership to further reduce the companies Carbon Footprint and to support local and minority group owned businesses.

Definitions:

1. What is a small and local supplier?
   • Small.
     Where the organisation has fewer than 50 employees and has an annual turnover or balance sheet value, which is equal to or less than £8.2m/10m Euros (EU definition), they are deemed to be a Small supplier.
   • Local.
     Where the organisation’s operations are carried out within the same UK area/region as the procuring team members home/working location.
2. What is a minority group?
   • minority, a culturally, ethnically, or racially distinct group that coexists with but is subordinate to a more dominant group. As the term is used in the social sciences, this subordinacy is the chief defining characteristic of a minority group.

The company does not discriminate in favour of, or against, any particular group or type of suppliers, regardless of their location, size, or position in the market.

We encourage new sources of supply and innovation from all suppliers capable of and wishing to supply the company, and select suppliers on the basis of their ability to demonstrably provide on-going value for money. We support small organisations that may have potential to become key suppliers of the future and local suppliers where we have a local presence in the community.

While the company operates an open and non-discriminatory supply policy, it can sometimes be

challenging for small and local suppliers to engage because:

• The services we require use large, or global infrastructure that a small or local supplier will not yet be able to supply.
• Our company's offering requires that we have a constant and interrupted supply which often can not be guaranteed from a small supplier.

Benefits of Using Small and Local Suppliers

Small and local suppliers may be better placed to offer benefits such as:

• a more responsive service;
• reduced need for transportation (and associated reduced carbon emissions); and
• more tailored solutions and supply arrangements.

The use of small and local suppliers and the empowerment of these organisations to develop and expand their businesses could potentially result in a stronger small and local supplier sector in the regions the company operates leading to potentially increased competitiveness in the longer term.

Better value

Because of their size or flexibility of location/type of premises, small and local suppliers can have lower administrative costs when compared with a larger competitor, reducing the cost of overheads and consequently the overall cost of supply.

Better and Specialised Services

Local suppliers may specialise in a particular product or service, for example local catering. Because of their emphasis on specialisms or excellence in a certain area they will often be better placed to supply a higher quality product or service and to tailor their service to meet the company's specific needs.

Innovation

Small and local suppliers could

• bring more innovation (e.g. technological) to the products or services delivered,
• be able to be agile and move quickly to embrace new developments in the market, especially where they are a niche provider of these products or services.

Contributing to the Development of Local Economies

Small and local suppliers consistently contribute to development of local economies and have been identified by the Government as being central to the development of well-being within UK regions.

By placing business with these types of suppliers, the company will also indirectly contribute to development of local communities and their economies.