Whilst most supply chain departments will have key transactional process and activity flows documented in some manner – one significant aspect of the purchasing function that is often overlooked is a code of practice. So do you need a code of practice for your supply chain staff? The short answer to this question is ‘Yes’ – whilst you may have activities documented the code of practice describes the policies and procedures for how individuals conduct themselves and manage key relationships as part of their day to day responsibilities.
A Code of Practice is not something that will radically transform the operation of the supply chain, but it will help people to be aware that they have responsibilities, wherever they are in the supply chain and the Code will help them to know what these responsibilities are. It also acts as a convenient way of introducing ethics and business standards into a document that will be read by everyone within the supply chain.
But what should be included in the code of practice? The Code of Practice should clearly guide staff as to the standards expected of everyone within the supply chain and include elements such as:
Relationships
The code of practice should explain how relationships with suppliers and other stakeholders will be managed and maintained in a fair and equitable way – for example only soliciting quotations when there is a requirement – having fair guidelines (for example evaluating suppliers), policies on anti-discrimination (between size of supplier, location etc), rules on dual sourcing.
Standards
The code of practice should also ensure that the personnel within the supply chain function operate to certain ethical standards. For example not accepting inappropriate gifts or hospitality and to what extent to maintain relationships with key personnel within the suppliers used.
Ethics & Professionalism
Most businesses expect high ethical and professional standards from their employees – this typically covers – fairness, objectivity, honesty. Staff can also be reminded that they need to be wholly open and honest throughout all aspects of the supply chain and they need to be open about any relationships that they may have, which could potentially have an impact or influence.
Legal aspects
The code of conduct should describe how the appropriate laws/governance apply to thier activities and how disputes should be managed and co-ordinated.
Care of process
Team members should be aware of how their tasks inter-relate with other parts of the business and – thus ensuring that key activities are carried out in a timely and effective manner. The Code of Practice should also remind people involved in the supply chain that they should provide information in a manner that is timely, accurate and ensures confidentiality.
Summary
The Code of conduct is an important document within the supply chain policies and procedures. It demonstrates that the supply chain function takes its responsibilities seriously.