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Running a responsible business

Suppliers

2012 Olympic logo at the airport

Each year we spend some £5.2 billion purchasing goods and services from our suppliers. We are determined to build strong and trusted relationships with our supply partners but also to boost the efficiency of our procurement process.

Efficient procurement

We procure goods and services through a strategic sourcing process, using benchmarking to make sure we achieve maximum value both at the point of purchase and over the life of a supply contract.

During the year, our procurement team reviewed our spending with our top 500 suppliers who account for some 94 per cent of total annual external spend. The structure of our commercial deals and the specification of the goods and services being bought were fully investigated, resulting in considerable savings over the year.

Corporate responsibility in the supplier base

As we describe in more detail in our annual CR report we have taken a fresh look at our supplier CR strategy. Called ‘Responsible Procurement’, the new multi-faceted approach allows us to understand much more clearly if the CR credentials of our suppliers match up with our own ‘One Destination’ corporate goals.

Supplier risk

We have overhauled our supplier risk assessment and monitoring process in favour of a less subjective approach, using external company data and analytics.

Payment performance

We continue to maintain supplier payment performance around our target of 90 per cent of suppliers paid in accordance with mutually agreed terms. The number of days’ purchases in creditors at 31 March 2010 is calculated in accordance with the provisions of the Companies Act 2006 and was 33 days (2009: 32 days).

During the year we continued to build on our sponsorship strategy for London 2012.

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