Supplier Handbook
Contents 1. Purpose, Intent and Scope 2. Introduction to Tarmac 3. Health & Safety 4. CRH Code of Conduct and Tarmac’s Sustainability Strategy 5. Accreditation 6. Terms and Conditions 7. Working for Tarmac 8. Insurance 9. Supplier Engagement 10. Innovation 11. Transacting with Tarmac
1. Purpose, Intent and Scope 1.1 Purpose At Tarmac, our vision is, “Building our Future”. We recognise that Tarmac’s success depends on working effectively with our suppliers to build a future for all of us.
We want you, as our supply chain, to share our values: • Proud - we want you to be proud to work with Tarmac • Collaborative - we want you to work with Tarmac to deliver objectives that improve both of our businesses • Ambitious - we want you to be ambitious in what you can achieve with Tarmac, always striving towards excellence We want to be your “Customer of Choice”. It is therefore essential to set the rules and guidelines that explain how we will work together to form an effective partnership. That means what we expect from you but also what you can expect from us.
1.2 Intent This Handbook was developed with the following principles: • We will operate safely on Tarmac sites • We will select and develop a competitive supply chain through a clear and fair framework • It will be straightforward to do business with Tarmac
1.3 Scope This Supplier Handbook applies to all suppliers of materials and services to Tarmac Trading Limited, Tarmac Cement and Lime Limited, Tarmac Services Limited and Tarmac Building Products Limited, referred to as Tarmac in this Supplier Handbook.
2. Introduction to Tarmac Tarmac, a CRH company, is the UK’s leading sustainable building materials and construction solutions business. Tarmac combines the knowledge and expertise of two of the construction industry’s most iconic brands: Tarmac, the pioneers of the modern road and Blue Circle, the company that patented Portland Cement. Our innovative products and solutions not only safely deliver the infrastructure needed to grow the UK economy today but also help to create a more sustainable built environment for the country’s long term future. We have contributed to some of the UK’s biggest construction projects, including The Sainsbury Laboratory, Wembley Stadium, Heathrow Terminal 5, Blackpool Sea Defences, The Shard and London 2012.
The company has over 150 years of experience and directly employs around 7,000 people across a nationwide network of over 400 sites. Our solutions span aggregates, asphalt, cement, lime, readymix concrete, offsite manufacture, road contracting and highways services, civil engineering, building products and recycling services. This unique combination of people, technology and assets enables us to offer customers unrivalled choice, innovation and flexibility. You can find out more about Tarmac on our website.
3. Health & Safety Safety across our entire supply chain is the key priority for our business. We work to the highest standards and require the companies we work with to commit to this level of performance. We will not compromise safety in any part of our operation. We are committed to building a zero harm culture that prioritises people’s health, safety and well-being, and targets continuous improvement. Through embedding Tarmac & CRH standards and the mandatory framework, this provides a more robust platform for delivery of the Tarmac Work Safe Home Safe Philosophy. Please take time to read and understand Tarmac’s Safety and Health Policy Statement, available on our website.
4. CRH Code of Conduct and Tarmac’s Sustainability Strategy Tarmac and CRH places business ethics and sustainability at the forefront of all business interactions, including those with our suppliers, recognising they are key stakeholders in the success of our business. We expect our suppliers to share our unwavering commitment to ethical business practices and meet our standards including in respect of human rights, health & safety and environmental stewardship. Prior to being approved as a Tarmac supplier, you will have to agree to CRH’s Code of Conduct. Prior to being approved as a Tarmac supplier, you will have to sign CRH’s Code of Conduct. CRH’s Code of Conduct is implemented and embedded through Tarmac’s Sustainability Strategy: • People (Health and Safety, Our People, Community Engagement) - We aim to be a safe business that employs great people and maintains strong community relationships.
• Planet (Climate change, environmental stewardship and resource efficiency) - We have set demanding commitments to help tackle climate change, enhance our environmental stewardship and use resources more efficiently. Please see Tarmac’s Environmental Policy Statement which is available on our website. • Performance (Economic value, governance and ethics) - Through strong governance and ethics we can build a business that creates longterm value and innovates sustainable construction solutions • Solutions (Sustainable supply chain, sustainable construction) - We adopt a whole life approach to provide innovative construction products, services and solutions that support the needs of our customers. Please see Tarmac’s Sustainability Strategy which is available on our website.
5. Accreditation For suppliers who carry out any work on our sites, we will only engage and work with suppliers who are accredited through the Tarmac Supplier Accreditation process.
If your company is already an Avetta member, the system will recognise the data already submitted, so you just need to link to our business and complete the Tarmac specific questions.
We have specifically designed our supplier accreditation process to ensure a single exercise will give suppliers full access to all our UK business units – Materials, Cement & Lime, Contracting and Tarmac Building Products.
Tarmac also recognises the accreditation standards set by Achilles Building Confidence and UVDB which will be accepted in lieu of Avetta.
Our primary supplier accreditation solution is Avetta. By joining Avetta, you have the opportunity to share your company data across the wider sector, as the accreditation process aligns with the Mineral Products Association (MPA) Safer by Partnership Initiative.
6. Terms and Conditions Unless otherwise agreed with a Tarmac Category Manager, you will supply according to Tarmac’s Standard Terms and Conditions. Please note that only the Tarmac Procurement Director is permitted to sign supply contracts on behalf of Tarmac. See the final section of this handbook, to find out how to contact a Category Manager.
7. Working for Tarmac 7.1 Safe Working
7.2 Considerate Working
7.4 Notification Procedure
Suppliers must comply with:
Do not start the provision of Services on Site before obtaining the consent of Tarmac. When working, make sure that no work that you perform is irreversibly obscured or physically covered over until Tarmac has had a reasonable opportunity to inspect it.
You shall give immediate notice in the event of any accident or damage and give all the information and assistance that Tarmac or our insurers may require.
• Tarmac’s current Safety, Health and Environmental Rules for Contractors • All Applicable Laws relating to health and safety including the Health and Safety at Work Act 1974 Compliance with the rules and regulations detailed above plus any relevant Tarmac Safety Standards is an essential condition of our contract with you. Tarmac has the right to remove or request the removal of any person brought to the Site by the Supplier who has: • failed to comply with the SHE Rules • misconducted themselves or been negligent or incompetent, Removal of anyone under these circumstances does not release you from performing your obligations.
You must prevent any nuisance or trespass (including, but without limitation, any noisy working operations, or interference with access or use of public or private roads and/or footpaths) or other interference with the rights of the owner, or any tenant or occupier of the Site or any adjoining land, arising out of the Services.
7.3 Things Found on Site All minerals, metals, objects and other things found or discovered on, under or around the Site shall be the property of Tarmac.
7.5 Supplier’s obligations in relation to equipment Where Tarmac issues materials, plant or equipment ‘free of charge’ to you, such materials shall be and remain the property of Tarmac. You must maintain these materials in good order and condition subject to fair wear and tear. You must use these materials solely in connection with the contract that you are working on. Any surplus materials shall be disposed of at Tarmac’s discretion. Waste of such materials arising from bad workmanship or negligence shall be made good at your expense. You must give back Tarmac’s free issue materials when Tarmac requires.
8. Insurance A key requirement of Tarmac for all of its suppliers is insurance. It is obviously prudent for any supplier to have appropriate insurance. In addition Tarmac considers that requiring its suppliers to hold insurance is a key part of managing its own risk, and guarding its reputation.
In addition Tarmac requires the following additional insurance for certain services:
Tarmac requires any supplier to Tarmac to hold as a minimum the following insurance:
• Where the supplier provides consultancy services, design services, IT or software design or development, or professional services; the supplier shall hold professional indemnity insurance for a minimum of £2,000,000 (two million pounds) per claim
• Employers liability insurance for the higher of the amount required at law or £5,000,000 (five million pounds) per claim • Public liability insurance (including product liability) for a minimum of £5,000,000 (five million pounds) for each occurrence
• Where the supplier is providing transport, warehouse or storage services the supplier shall hold goods in transit insurance for a minimum of £350,000
The supplier will also hold any other insurance Tarmac requires of it as set out in the contract with the supplier or otherwise agreed with the supplier. The supplier must comply with all obligations of its insurance and not do, or omit to do, or permit anything to be done which may invalidate that insurance or diminish the benefit of the insurance. On request from Tarmac the supplier shall provide a copy of the full policy documents and premium receipts for the insurance.
9. Supplier Engagement Tarmac aims to engage all suppliers in a fair and consistent manner. Ownership of supplier management activity will be assigned to a dedicated Category Manager within the central Procurement team. The method of engagement required is determined by an assessment of spend and risk.
9.1 Supplier Selection
9.2 360o Feedback Periodically Tarmac may ask its key stakeholders for feedback on the performance of the existing relationship. This is achieved using a structured online survey called “Voice of the Customer”. Key questions relevant to both the agreement and the relationship with a Supplier are asked to targeted Tarmac employees and the feedback is gathered and fed back.
Tarmac follows CRH’s 5 step strategic sourcing process:
9.3 Supplier Performance Report
1. Business Needs and Objectives
Tarmac employees are able to produce Supplier Performance Reports (SPR’s) to provide feedback to Tarmac’s Procurement team on supplier performance.
2. Category and Market Analysis 3. Create Sourcing Options 4. Strategy Execution 5. Supply Management Monthly gate reviews are held where Procurement Leadership Team reviews progress on active projects and ensures that projects are focused on delivering against clear and focused objectives.
The report will be directed to the relevant Category Manager to deal with. If a Category Manager contacts you regarding an SPR, it is essential that you deal with the query swiftly and pro-actively. SPR’s are logged and used to track overall supplier performance for Tarmac.
10. Innovation To meet the changing demands of infrastructure delivery in the face of increasingly more challenging budgets, tighter working windows and more constrained working environments, it is vital that the construction industry works embrace innovation, maximise efficiency and boost productivity. At Tarmac we are able to draw upon our unique blend of product innovation, technical expertise and logistics networks to work with our customers to understand their goals and help to deliver tangible efficiencies. Innovative product technology allows materials to be laid and installed faster and more efficiently. Our plants and logistics capabilities are optimised to allow us to deliver products as and when they are needed. The strength of our people is the foundation of our industry-leading expertise.
10.1 Tarmac’s Innovation Challenge In 2018, Tarmac ran its first Innovation Challenge in which we invited our supply chain to submit their innovative ideas for adding value to Tarmac’s customers. 190 responses were received with 14 being selected to attend the Tarmac Innovation Forum at the Manufacturing Technology Centre in Coventry. Suppliers will have the opportunity to participate in future annual Innovation Challenges All 14 attendees at the Innovation Forum were invited to pitch their ideas to a senior management panel. Attendees were also presented with some of the toughest challenges that our industry faces and asked to contribute their ideas for how they can be tackled. Following the last Innovation Challenge, the winners, Atlantic Pumps said, “We share with Tarmac a belief that collaboration can bring big benefits to both parties. To receive such recognition from a well-known name in the industry is a credit to our energetic and hard-working team here at Atlantic Pumps.”
11. Transacting with Tarmac Most requirements from across the business are raised as requisitions, these are converted into purchase orders at our shared service centre in Solihull and issued to our supply chain. Significant, non-contracted requirements are directed through Tarmac’s Buying Desk, based at Solihull. The Buying Desk is staffed by trained procurement professionals who go out to market and ensure that Tarmac obtains the best value, taking into account price, quality and timely delivery.
T-Card T-cards are purchase cards which are restricted so that they can only be used by selected, contracted suppliers. If trading on a T card with us, you’ll benefit from lower transaction costs - you don’t even need to send us an invoice.
Low Value Purchase Cards (LVPC) These are credit cards which have a relatively low spend limits and are used for smaller purchases. You will need to provide VAT compliant invoices when trading on LVPC. Both the T-Card and LVPC are provided by Mastercard.
Invoicing Invoices submitted to Tarmac must include the following: • Please ensure that invoices are addressed to the correct legal entity (Tarmac Trading Limited, Tarmac Cement and Lime Limited, Tarmac Services Limited or Tarmac Building Products Limited) • Tarmac’s Purchase Order number • Invoice date and number • Supplier’s name and address • Description of the Goods and Services invoiced as detailed on the Purchase Order (if applicable)
• The location and date of delivery of the Goods invoiced • The dates for part payment, part delivery of Goods and/or part performance of the Services (if applicable) • The location and date of performance of the Services invoiced • The Price of the Goods and/or Services invoiced • Value added tax payable by Tarmac (where applicable to the transaction) stated separately from the Price • The Supplier’s VAT number and any other particulars required by law or regulation from time to time Get all this right and you will be paid efficiently and in accordance with payment terms agreed. If you submit a high number of invoices to us, we may be able to offer e-Invoicing.
Trading Systems Tarmac trades on 2 separate systems: • Tarmac Building Products - trades on the AX ERP system • All other Tarmac legal entities - trade on SAP Tarmac Building Products (AX) Invoices should be e-mailed to p2pprocessingteam@tarmacbp.co.uk All Other Tarmac Legal Entities (SAP) Invoices should be e-mailed to pdfinvoices@tarmac.com Please ensure that you send one invoice per pdf. Up to 10 pdf’s can be sent per e-mail.
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