Values Brochure. Shared values to build a stronger supply chain.

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1 Values Brochure Shared values to build a stronger supply chain.

2 Shared values to build a stronger supply chain Goal The primary goal of the Procurement team at Royal Mail Group is to deliver first class value for the business and protect it from risk, in support of the overall Royal Mail vision to be recognised as the best delivery company in the UK and across Europe. Values Our values Be Positive, Be Brilliant and Be Part Of It - represent the way we do things in Royal Mail. They apply to every employee and define the way we should act as individuals and as a company, They are an inherent part of our culture. Opportunity Royal Mail s supply chain consists of around 5,500 suppliers. With an annual spend in excess of 2.5bn it plays a vital role in achieving our vision. This brochure sets out our values and how Group Procurement seeks to attract the best suppliers and subcontractors to share, support and deploy these values throughout our supply chain.

3 Our values Take opportunities to compete and win contracts Help us streamline the contracting process Support our supply chain - solutions-based, not a shopping list As a supplier, make use of our supplier management portal to collaborate with us and showcase your organisation Deliver on time and in perfect condition Deliver excellent customer service Help us manage risk in the supply chain Work with us to drive innovation Understand Royal Mail as a customer and our needs Be an ethical, socially and environmentally responsible and quality company Promote diversity and inclusion within your organisation and ours

4 Be Positive: Our values Opportunities to work with Royal Mail Royal Mail spends about 2.5bn with external suppliers on the following products and services Print 9% HR and people 10% Utilities 7% Professional services 7% Vehicles 12% Buildings and estates 5% Assets 3% Marketing 3% Business travel 1% Logistics 12% Facilities management 13% IT and automation 19% Royal Mail continually seeks to improve its performance through collaborating with existing suppliers and identifying new sources of supply. New contracts We create between 100 to 200 new supply contracts each year. The majority of these are sourced competitively, providing an opportunity for bidders to showcase their products and services and demonstrate how they can add value. Whether your organisation is a long standing supplier to Royal Mail or a new bidder, there are opportunities to win contracts and develop a mutually beneficial working relationship. Easier to do business with We have worked on our sourcing and contracting processes to become easier to do business with. As a newly privatised organisation, we no longer operate under the fixed timetable and process constraints of the Public Procurement Regulations. We will continue to simplify our bidder qualification and selection process, for example by our move to the SAP Ariba platform that allows bidders to pre-register their credentials via the Ariba network.

5 Be Positive relationship development Royal Mail has a supplier management portal. It enables suppliers to: Upload accreditations (for example safety, quality, corporate responsibility and environmental certifications) Track performance against key performance indicators Support engagement and communication between supplier and customer Training is being rolled out to suppliers so that all parties get the most out of the portal. What s in it for you as a supplier? Opportunity to give feedback and make your opinion heard through regular engagement and surveys Showcase your certifications and awards by uploading them to the portal Ensure we identify and talk to the right people in your organisation with contact details for senior stakeholders and specialists at Royal Mail and the supplier Insights into Royal Mail s planning, opportunities, risks and priorities, giving you the opportunity to provide solutions and innovate for mutual benefits You can find out more about the supplier management portal by ing rmgprocurement@royalmail.com

6 Be Brilliant Our values build a reputation as a valued provider Deliver on time and in perfect condition Our customers rely on Royal Mail to deliver on time, so we expect our suppliers to match this. We operate in a highly competitive, time sensitive market with tight margins. We therefore need to ensure that our suppliers give us the right quality, at the right price, first time. The benefits are clear - returns and disputes are avoided and a relationship of confidence and trust is built up. Our supply chain can enable high performance, which can help us grow our business and in turn provide more opportunities for suppliers in future. Deliver excellent customer service Suppliers are expected to get the basics right but also stand out and impress. Great customer service is essential. As the UK s largest logistics and distribution company, Royal Mail is a complex organisation with some specific needs, for example our operating licence demands particular focus on security of the mail and staff vetting. The best suppliers work to understand Royal Mail - our business and regulatory environment, and innovate to support our vision. Help us manage risk and continuity in the supply chain Risk management is an increasing focus throughout our global supply chain. It is important that the suppliers who help us move mail worldwide are aware of potential risks and events across the world. Suppliers who have a clear understanding of risk in their operation and their own supply chain, and who mitigate and manage these risks effectively, are well placed to win and retain business with Royal Mail.

7 Be Part Our values Of It: Fairness, Diversity and Equality For Royal Mail these principles are fundamental to our identity as a business. We have one of the UK s largest employee populations, with a diverse mix of people that reflects the communities we serve. Fairness, diversity and equality are fundamental to our business. We all have a responsibility to treat each other fairly and with respect, no matter what our colleagues race, age, gender, sexuality, disability or religious beliefs We are proud to be global sustainability leader of the Transportation and Transportation Infrastructure sector, measured by the Dow Jones Sustainability World Index. Royal Mail is committed to placing fairness, diversity and equality, at the heart of our values, policies and everyday practices. We expect suppliers to support this by promoting fair participation and equal opportunities for all their employees and job applicants, and by providing an environment in which all individuals are able to make the best use of their skills, free from discrimination or harassment. These standards apply both to supplier personnel who work physically as part of our organisation, integrated into our teams, and equally to suppliers who support us by providing other services or products. We require all suppliers to adhere to the UN Universal Declaration of Human Rights, and act in accordance with the Ten Principles of the UN Global Compact. These form the basis of the Royal Mail Responsible Procurement Code that we ask all suppliers to operate in accordance with. More information More details of our approach, and our expectations of our suppliers, can be found on the Royal Mail Group website at: files/responsible_procurement_code_v9.pdf If you would like any more information on any of the subjects covered in this brochure, please contact us at rmgprocurement@royalmail.com You can also contact us using the Procurement LinkedIn Showcase page, part of the main Royal Mail LinkedIn page

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