We always endeavour to select suppliers who share our values, our commitment to uncompromising quality and our passion for delighting our consumers
At SABMiller we always endeavour to select suppliers who share our values, our commitment to uncompromising quality, and our passion for delighting our consumers.
Our rigorous supplier accreditation programme assesses our prospective suppliers' compliance with our standards in terms of social compliance & human rights, business governance, financial stability and (where appropriate) technical capability. SABMiller Procurement will contract only with suppliers who have been accredited to our global standards.
Our accreditation process requires our suppliers to be transparent about their business and sustainability practices, and to engage actively in our policies and processes with a combination of self-assessment questionnaires and possibly ethical and technical audits on site.
We build strong relationships with our key suppliers and we work with them to ensure that our global standards are continuously maintained. With our supplier development initiatives, we support suppliers in building and strengthening capability where required.
Our contractual arrangements will be provided during our tender processes.
SABMiller supplier payment terms
SABMiller is committed to the highest level of ethics in how we conduct business and in our dealings with our suppliers. We endeavour to pay our suppliers in a timely manner and we select our suppliers based on robust fact-based balanced score cards. Payment terms are one of the criteria we use in the selection process, alongside quality of goods and services, price, security of supply, sustainability, and innovation. SABMiller has a long history of working closely with suppliers and building long-term, mutually beneficial relationships. As a multinational company that grew from emerging markets, we are well placed to ensure that our approach towards supplier payment terms is appropriate for our supply chains and maximise value for our business, our partners and communities in which we operate.
Our group and procurement target for supplier payment terms is 90 days as a weighted average. This is our going-in position when we tender business. Early visibility sets clear expectations and enables our suppliers to bid competitively taking into account their cash flow position.
We comply with local legislation and industry norms and make exceptions to this policy when required. Our supplier accreditation program enables us to assess suppliers’ financial standings ahead of contracting and ensure we can exercise flexibility when negotiating contractual terms and mitigate risks. Equally, where we run small suppliers development program in support of our sustainable development ambition Prosper, We are willing to agree more favourable terms with suppliers provided we understand how standard payment terms would be detrimental and how shorter payment terms would accelerate their development.
In many geographies were we operate, we recognise that many suppliers find it difficult to get access to flexible credit facilities to secure cash flow. We have therefore developed partnerships with financial institutions to introduce this access to credit through reverse factoring, so that suppliers have the opportunity to draw down payments earlier, at more advantageous rates than those they could access directly. We are also exploring other early payment solutions to be operationalised in 2016.