Outstanding Procurement Practice - UK Ministry of Defence
Far too often the UK Ministry of Defence is criticised for its procurement practices. Here is a link ( http://www.supplymanagement.com/news/2014/defence-minister-hits-back-at-late-payment-claims )to an article that identifies current levels of payment promptness. An extract of particular interest:
"the department paid almost all correctly submitted invoices within 11 days, and more than 90 per cent within five days, during the 2012/13 financial year. Legislation says that it should pay suppliers within 30 days."
These figures are incredible and for a government body exceptional. Private sector companies should take note. What the government should now do is go that extra mile to ensure that payment terms throughout the country in both public and private sector should be no greater than 30 days. Why? Because this government claims to be a government for business and is relying on the private sector to help pull the country out of recession and establish a positive growth profile. The single largest problem for most businesses is cash flow; prompt payment greatly assists with cash flow management...
"the department paid almost all correctly submitted invoices within 11 days, and more than 90 per cent within five days, during the 2012/13 financial year. Legislation says that it should pay suppliers within 30 days."
These figures are incredible and for a government body exceptional. Private sector companies should take note. What the government should now do is go that extra mile to ensure that payment terms throughout the country in both public and private sector should be no greater than 30 days. Why? Because this government claims to be a government for business and is relying on the private sector to help pull the country out of recession and establish a positive growth profile. The single largest problem for most businesses is cash flow; prompt payment greatly assists with cash flow management...
Comments
Post a Comment