New Supplier set up restriction

Finance have experienced a substantial increase in requests for payments to new suppliers over the last 12-24 months. This has resulted in;

• Higher administration costs i.e. Setting up paying and reconciling new suppliers.
• Multiplicity of supplier for similar products.
• Legal issues in relation to warranty, ownership, insurance and maintenance are not resolved.
• Non- compliance with tax regulations in relation to Tax Clearance Certificates and Witholding tax.

Finance Authorisation

Finance will only authorise new suppliers in future if they meet the following criteria;

• Products are not been provided by an existing supplier or products provided at a better value by an alternative supplier.
• Proper Procurement procedures have been followed.
• Tax affairs of the new supplier are in order.
• Legal issues in relation to the purchase have been adhered to.

Procedures Changes

• Buyers can only send in Request for Authorisation to set up supplier.
• Finance will have to sign off on request.
• Only authorised suppliers will be set up by Accounts payable.

Within the next 12 months Finance will undertake a programme of supplier reduction and amalgamation to ensure that DCU are achieving best value from our suppliers.