Reuters is committed to improving the efficiency of how we transact with suppliers by automating the "purchase to pay" process. This will enable both parties to reduce administration costs and reduce the time required for each transaction.

We have defined a number of general principles that relate to the supply of goods and services. The precise requirements will vary depending upon the product to be supplied however the following provides an overview of the levels of control and
automation that Reuters has adopted.

Goods or services should only be supplied to Reuters against a commitment made via one of the following means:

• Purchase Order
• Signed contract
• Corporate Purchase Card
• Credit Card

To facilitate electronic transmission suppliers should be able to receive Purchase Orders through at least one of the following mediums:

• Auto-fax
• E-mail
• XML

Direct transmission between our respective systems is a further option that we are keen to develop where the nature of the goods or services being supplied makes this practicable.

Where an item is physically received our staff are required to confirm receipt in our ordering system so that an automated payment can be made.

For the supply of services a payment schedule and authorisation process should be agreed with the appropriate Reuters contact prior to invoice submission.

We are moving towards a "No PO / No Pay" policy and all suppliers are required to agree to participate.

Invoices should be submitted on a monthly basis, regardless of the frequency of supply. Where there is a large number of transactions invoices should be submitted electronically to facilitate automated up-load. Templates are available.

Payment administration within Reuters is managed by a small number of regional Business Service Centres (BSCs). To avoid delays it is most important that invoices are submitted directly to the appropriate BSC and not to individuals within the business unit supplied.

We continue to look for ways to reduce the need for invoicing by employing more efficient ordering and payment processes. For example:

• Payment on receipt
• Purchase cards
• Electronic catalogues

Catalogues currently in use are maintained by Reuters in order to ensure that the range of product available conforms to our policy for that particular category. Opportunities to access externally managed catalogues using "punch-out" technology are also of interest as long as suppliers are willing to control their offering according to the same rules.