5 Ways The New Procurement Changes Will Benefit SMEs

As an SME bidding in the public sector, it can often feel as though things are stacked against you. As always, with bigger businesses having more resources at their disposal, any change that helps Small and Medium-sized Enterprises (SMEs) is a win. 

New procurement changes are set to benefit SMEs significantly; designed to simplify the bidding landscape, create fairer competition and ensure timely payments. Here are just a few ways the changes may benefit your small business going forward.

  1. Streamlined Bidding

The bidding process is being revamped to encourage greater collaboration between the public sector and SMEs. The new ‘competitive flexible’ procedure will facilitate more innovative and tailored solutions, providing SMEs with opportunities to better showcase their capabilities. This means a more SME focussed approach, helping your business stand out among bigger fish.

  1. Flexible Frameworks

Changes to commercial frameworks aim to increase flexibility, ensuring that SMEs are not excluded from the bidding process for lengthy periods as they have been before. By allowing more frequent participation, these frameworks help maintain a competitive supplier pool and encourage continuous innovation.

  1. Minimised Barriers

With these new changes in place, contracting authorities will soon be required to actively minimise the barriers SMEs face throughout the procurement lifecycle. This initiative will help small businesses compete more effectively, broadening their opportunities to secure public sector contracts.

  1. Prompt Payment

The importance of financial stability for SMEs will be recognised with enforced 30-day payment terms on a broader range of public sector contracts. This should completely resolve many of the cash flow issues that often leave small businesses in debt waiting for payments to be made.

  1. Stronger Supplier Management

A more robust exclusions framework will be implemented to deal more effectively with underperforming suppliers. This will improve outcomes and uphold the integrity of the procurement process.

Prepare for the Changes

These changes, effective from October 2024, require SMEs in the public sector supply chain to get acquainted with the new processes ahead of time. Understanding and adapting to these changes early can significantly enhance an SME’s ability to succeed under the new regime.

For any questions or guidance on navigating these upcoming changes, assistance is readily available. Feel free to contact us on 01392 247997 or email us at info@winningtenders.com. Proactively engaging with these changes can provide SMEs with a competitive edge in the evolving public sector market.

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