Prompt Payment Code (PPC)
Action Plan to Commit to Prompt and Effective Payments in our Supply Chain
Goal: Implement systems and processes to ensure prompt and effective payment to all entities within our supply chain.
Accounts payable department
Immediate (0-3 months): Implement quick wins and establish foundation.
Short-term (3-6 months): Refine processes and address identified gaps.
Long-term (6+ months): Continuously monitor and improve payment performance.
Conduct a supplier survey: Assess current payment satisfaction levels and identify pain points.
Review payment terms: Analyse existing contracts and renegotiate extended terms if necessary.
Standardise invoicing process: Establish clear guidelines for invoice submission and approval.
Automate accounts payable tasks: Utilise technology to streamline invoice processing and approval.
Communicate commitment to suppliers: Publicly announce intention to prioritise prompt payments.
Implement early payment discounts: Offer incentives for early invoice settlement.
Integrate with electronic payment platforms: Facilitate faster and more secure transactions.
Develop a payment schedule: Establish predictable payment cycles for different supplier categories.
Improve communication with suppliers: Provide regular updates on invoice status and payment timing.
Track and measure performance: Monitor key metrics (e.g., average payment turnaround time) and identify areas for improvement.
Partner with financial institutions: Explore financing options to accelerate payments.
Invest in supply chain finance solutions: Utilise platforms that automate and optimize payments.
Benchmark against industry standards: Continuously compare performance to industry best practices.
Conduct regular supplier reviews: Solicit feedback and address any lingering concerns.
Foster collaborative relationships: Build trust and transparency with suppliers through open communication.
Track supplier satisfaction through surveys and feedback mechanisms.
Monitor key performance indicators (KPIs) such as average payment turnaround time and percentage of early payments.
Benchmark performance against industry standards and competitors.
Conduct regular reviews to identify and address any ongoing challenges.
This plan has been approved by the Board of Directors of Consultdoc Limited and will be available to the public on our website from the PPC logo.