Supply Chain Management
Magnox Limited has a supply chain management policy which lays down the principles of our interaction with our suppliers
1. INTRODUCTION
The purpose of this document is to define the Supply Chain Management policy. Adherence to this policy is mandatory for all staff and all business units in the Company who are involved in the procurement of goods, services or works from the external supply chain.
2 DEFINITION OF SUPPLY CHAIN MANAGEMENT
Supply Chain Management is the delivery of added value through management of the procurement process from initiation of requirement to delivery of goods and services and completion of works which the Company requires to run the business. Disposals of obsolete and redundant items are also encompassed within this definition.
3. POLICY
All Supply Chain Management for the Company shall be carried out in accordance with the declared mission to "Generate maximum shareholder value through uncompromising application of simple disciplined programme delivery" and shall therefore uphold the following principles:
Meet legal requirements
Comply with the Company health, safety, quality and environmental requirements
Ensure that all goods and services purchased within the Company conform to specified requirements at point of use
Meet the agreed requirements of the customer
Provide value for money
Demonstrate the highest professional ethics, standards and conduct
Provide sound commercial financial control, ensure sound corporate governance
4. OBJECTIVES OF SUPPLY CHAIN MANAGEMENT
The purpose of Supply Chain Management is to add value to the business by:
Ensuring that all procurement is made from suppliers who have been assessed as being able to deliver the specified technical and quality requirements
Reducing the cost base, controlling quality, improving operational efficiency and protecting the commercial position of the company
Optimising the decision to source internally from the external supply chain
Optimising the size of the supplier base
Delivering controlled and predictable supply outcomes
Applying a common graded approach to Quality Management in the supply chain
Aligning sub-contracts and processes with customer requirements
5 VALUE FOR MONEY
All sourcing decisions for the Company shall demonstrably provide value for money recognising that this does not mean just lowest tendered price, but shall take into account costs and benefits that are objectively measurable of the goods, services or works on a lifetime basis, including, quality, delivery, maintenance, spares, commercial obligations and risk.
6 MAKE VERSUS BUY
All requirements for the procurement of goods, services and works shall be subject to an annual Make-Buy decision process through the preparation of Lifetime Plans. The Make-Buy decision is the formal strategic process for determining, through economic analysis, the best value option to be delivered either by the Company's workforce or procured from the external supply chain.
7 HEALTH, SAFETY AND ENVIRONMENT
All Supply Chain Management shall carried out in accordance with the Company's primary goal that no harm to persons, plant or the environment should result from contractual activities and that the Group will work with vendors to maintain and improve standards in the conduct of operations, in particular by ensuring that they are adequately resourced and carried out by suitably qualified and experienced people
8 SEPARATION OF DUTIES
Procurement has overall responsibility for making sourcing decisions having obtained relevant input from technical, quality, commercial and financial teams.
In addition, to protect the individual, as well as the Company, there shall be a three way separation of procurement duties such that different officers shall:
Authorise the requirement
Make the commitment
Make payment
Variation from this rule is permitted in certain documented circumstances such as the use of Visa Card, emergencies etc.
9. AUTHORITY AND CHANGE MANAGEMENT
All those involved in the procurement process should be aware of the authority they are permitted to exercise and should not depart from it. The approval of all procurement transactions shall be in accordance with formal levels of delegated authority, including authorisation by the customer, where required.
