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MoD sets out plans to support SMEs

This year the Ministry of Defense (MoD) published a document to set out their plans to support SMEs by setting out a target spend of 25% for SMEs by 2022.

In the document, the MoD stated that to realise it’s long term vision for the UK’s defence sector, they hope to create a vibrant, competitive and sustainable supply chain. They state that the contribution made by SMEs is crucial to UK prosperity and the MoD’s availability to continue to compete in the global marketplace.

Their aim in the next four years is to become the customer of choice for defence SME suppliers. They currently spend ¾ of their budget with smaller businesses within their supply chain, however, plan to continue working towards improving the supply chain and map accurate reporting of spend within SMEs.

The Action Plan supported by Ministerial endorsement includes a number of case studies that will be used to actively share across the department. The plan also includes sub-sections of; strengthening supplier engagement, improving procurement policy and process, easier access to do business with defence and encourage innovation, all of which provide clear action.

This change in the MoD’s plans is a refreshed approach to the departments supply chain, ensuring that SMEs are well represented by aligning with the DSF (Defence Suppliers Forum) and the Defence SME Forum, which is chaired by the Minister for Defence Procurement and provides SMEs opportunities to share their views and experience of working in defence.

This, in turn, will help to attain feedback from SMEs including any barriers to entry, promoting good practice, championing prompt payment, opening supply chains to a wide range of suppliers and advertising subcontracting and marketing engagement opportunities through the Defence Contracts Online supplier portal.

For more information and guidance for prospective suppliers, you can read the Opportunities and Innovation in the Defence Supply Chain brochure. The full MoD SME Action Plan can be found here.


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