Code signatories undertake to:
1) Pay suppliers on time
- by paying 95% of invoices within the agreed payment terms and without attempting to change terms retrospectively
- by paying 95% of all invoices within 60 days, and 95% of invoices from businesses with fewer than 50 employees within 30 days
- by acknowledging their right to use late payment legislation to invoice for late payment interest and charges when appropriate.
2) Give clear guidance to suppliers
- by providing clear and easily accessible guidance on payment procedures and invoicing requirements at on-boarding stage and on an ongoing basis
- by ensuring there is a system for dealing with complaints and disputes which is clearly communicated, and providing a contact-point (or online portal) for them to ascertain the status of invoices being processed
- by advising them immediately if there is any reason why an invoice will not be paid to the agreed terms.
3) Adopt and encourage good practice
- by requesting that lead suppliers encourage adoption of the Code throughout their own supply chains
- by using the PPC logo to demonstrate commitment to the Code principles and enhance supplier confidence
- by avoiding any practices that adversely affect the supply chain.
The Code Compliance Board will have the remit to investigate and, if need be, act when a term in a contract exists or changes in a way that a supplier claims to be grossly unfair.
- If you pay promptly, then it’s a real benefit to your supplier and potentially to you, the customer, as you could benefit too by receiving more favourable pricing or service which could make you more competitive.
- Once approved, you can use the PPC logo on your documentation and website to show that you are serious about good payment practice.