Suppliers

All our procurement activity is carried out by our commercial department, whose objective is to support our vision to be the best UK water and wastewater company, providing great service to our customers. We build relationships with our key partners and suppliers based on common values to achieve our goals.

We conduct business with around 2,500 suppliers every year, from major international corporations to sole traders. We are committed to meeting our obligations to our suppliers, measuring our progress whilst dealing fairly and ethically at all times.

Our approach to supply chain activity is based on category management which takes a long term holistic view of our demand, specifications and the supplier market to deliver the appropriate contract strategy. Throughout this process we’re encouraging commercial awareness from market to company and encouraging competition wherever necessary.

Our third party spend is around £1 billion per annum and consolidated into a number of categories which reflect similar commercial considerations and supply markets, with each category having a dedicated category delivery manager.

Supplier segmentation

Our supplier segmentation model splits suppliers into four segments: Partner, Strategic, Preferred and Approved. The model sets our expectations for the different segments against performance measures of: customer, regulatory/legal, sustainability/efficiency and health, safety and wellbeing. Those higher up the segmentation hierarchy receive greater scrutiny, for instance, regular meetings are undertaken with Partners to evaluate performance, plan future activity and manage performance issues.

Supplier segmentation model
Partners and Strategic suppliers account for a large proportion of our annual spend and are more critical in delivering our key services. Preferred suppliers provide goods and services accounting for a lower proportion of spend value and as such receive less interaction from our commercial team. Whilst approved suppliers are generally smaller, with shorter relationships that incorporate more local, one off transactions.

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