The Federation of Small Business (FSB) has launched a new report into supply chain practices, as it calls on Government to accept a number of public procurement reforms that it believes will promote supply chain best-practice and unlock the potential of the UK’s 5.7 million small businesses.
25 per cent of businesses who are in the supply chains for public infrastructure projects experience late payment more than half the time, according to research by the FSB. However, just 12 per cent of smaller businesses in public supply chains say they have been provided with skills support.
The FSB is calling for Government to identify opportunities to split up big public procurement contracts, make better use of Dynamic Purchasing Systems and to make sure large government suppliers pay on time.
Reflecting on recent market failures, such as the collapse of Carillion, FSB Chairman, Mike Cherry says: “Healthy supply chains are a win-win for businesses and tax payers as they create genuine competition, drive productivity, help close skills gaps and fuel economic growth.
“Carillion’s collapse demonstrated the urgent need for Government embark on a positive reform agenda to increase value for money for tax payers and to minimise the risk of putting too much power in the hands of a few big firms.
“By setting a good example, Government will set down a marker for Chairs and CEOs of the UK’s largest companies so that they take accountability for embracing good supply chain practice.”
As recent events have demonstrated, it is essential that SMEs put in place a business continuity plan that takes into consideration how their business will continue if one or more of their suppliers are hit by a major incident.
Our business experts at Beavis Morgan work with many entrepreneurial businesses across a range of sectors, helping them set up and run their own businesses and guiding them through each stage of the process, whilst navigating the challenges and advising them in making the right decisions both now and for the future.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
If you would like to know more about how we can assist you and your business, contact Steve Govey or your usual Beavis Morgan Partner.