Launching a programme to stimulate supply chain innovation in the West Midlands

Enterprise Nation, in partnership with Newable, Business Growth West Midlands, Greater Birmingham Chambers of Commerce, and the West Midlands Combined Authority (WMCA), was thrilled to host the opening event for the WMCA Supply Chain Transition programme.

The event, hosted in the NatWest Accelerator in Birmingham, brought together government policymakers, supply chain experts and small business owners to discuss how the programme can be used to stimulate supply chain innovation in the region's high-growth sectors of health and med tech, future housing and smart energy systems.

On the importance of SME growth and innovation in the West Midlands

The event host, and Enterprise Nation's founder and CEO, Emma Jones, introduced the audience to Dan Carins, the business policy manager at the WMCA, to outline his thoughts on the importance of small business growth and innovation in the West Midlands.

Dan began by providing the context for the Supply Chain Transition programme. Dan emphasised that the key focus of the programme is on 'transition', supporting businesses move into the supply chains of growth sectors.

Dan noted that resilient supply chains are essential for growing the economy in the West Midlands, adding that the programme seeks to help small businesses showcase their expertise and offer guidance on how they can meet customer requirements.

The programme will provide guidance and support to help businesses find new customers and markets. Dan highlighted that the programme is fully funded, with no cost to participating businesses, and will offer practical, one-on-one guidance to address each business's unique challenges and opportunities.

The ultimate goal, Dan said, is to help businesses win new orders, create jobs, and become more competitive, thereby enhancing the region's overall resilience.

On what the government is buying

Dan Carin's keynote address was followed by a panel session, hosted by Thom Webb, deputy managing director at Newable, bringing together a wealth of knowledge and experience, providing attendees with a comprehensive understanding of the current trends, challenges, and opportunities in public sector procurement.

Sandra Sewell, the head of strategic account management at the Crown Commercial Service, kicked off the discussion by highlighting the key areas of focus for the public sector.

From the growing demand in health and social care to the increasing emphasis on sustainability and net zero initiatives, Sandra painted a picture of a dynamic landscape that presents ample opportunities for small businesses to get involved. Sandra also touched on the importance of skills development, digital transformation, and income generation - all areas where the public sector is actively seeking innovative solutions.

Amardeep Gill, a partner at Trowers & Hamlins LLP and its national head of public sector practice, delved into the challenges and opportunities facing different parts of the public sector.

He noted that local government has been under significant strain due to austerity measures and the impact of the COVID-19 pandemic. However, Amardeep highlighted the potential of devolution, with regional authorities receiving multi-year settlements and the ability to mix funding streams, creating fertile ground for small businesses to explore.

Turning the spotlight to central government, Amardeep identified a shift towards a desire for more innovation and entrepreneurialism, potentially opening up new avenues for smaller businesses to engage. He emphasised the importance of transparency in public sector procurement, urging small businesses to stay informed and actively seek out opportunities.

Shirley Cooper OBE, the government's SME crown representative, underscored the significance of the Procurement Act, which she described as a "game-changer" for SMEs.

Shirley stressed the need to ensure that all public sector buyers have a strong focus on engaging with small businesses at every stage of the procurement process. Shirley also encouraged women-led businesses to take advantage of the support and community available, recognising the unique challenges they may face in accessing these opportunities.

Throughout the discussion, the panellists emphasised the importance of small businesses being "ready" - whether it's understanding the requirements for certifications, familiarising oneself with public sector frameworks, or tapping into the wealth of information available on government websites and through organisations like Enterprise Nation.

The speakers also highlighted the role of public sector buying organisations in creating collaborative networks and opportunities for SMEs to integrate into supply chains.

On the private sector procurement opportunities: What strategic suppliers are buying

Industry experts Bob Roopra, health tech specialist at Konduit Ltd, and Louis Sebastian, partner at Trowers & Hamlins LLP, shared valuable insights on how small businesses can successfully navigate the intricate world of procurement.

Bob emphasised the importance of being involved in defining tender requirements, rather than simply responding to an existing tender. This, he explained, allows SMEs to shape the procurement process to better suit their innovative solutions. He highlighted the potential of leveraging the gaps of larger companies and exploring managed service contracts, which larger companies may have gaps to fill, as entry points into the industry.

Turning to the crucial issue of intellectual property (IP) protection, Louis stressed the need for SMEs to safeguard their IP from the outset. He advised SMEs to carefully review contract terms, particularly around IP ownership and licensing, to ensure they retain control over their valuable innovations. Louis emphasised the importance of involving legal counsel early in the process to help navigate the complex legal landscape and protect the SME's interests.

The speakers also discussed the benefits of collaborating with larger companies, such as accessing their distribution channels and leveraging their market presence. However, they cautioned SMEs to carefully negotiate contract terms to ensure a fair and mutually beneficial arrangement, protecting their IP and risk exposure.

Success story: How a local entrepreneur secured public sector contracts

Emma Jones introduced Andy Mallett, solutions director at 848 Group, a company focused on IT services and the delivery of Microsoft products. Andy explained how 848 was first introduced to the public sector through Deloitte, a journey that began in 2016 as they sought to establish themselves as a disruptive IT company.

The first contract 848 secured was with a regulatory body in Birmingham. They pursued this contract with enthusiasm, and a bit of immaturity when it came to fully understanding a contract from a large consultancy to an end client. This experience would prove to be a valuable lesson and began to shape a more robust indirect approach.

Andy noted that a key outcome was the introduction of a commercial director to bring a more objective, pragmatic approach to decision making. Andy emphasised the importance of managing partner relationships ethically and transparently, avoiding direct competition that would create conflict.

The relationship is a two-way street, with 848 proactively identifying opportunities while also receiving leads from Deloitte. Typically, Deloitte handles the programme management, while 848 focuses on the technical work and assisting Deloitte with its obligations under the contract, such as reporting on key performance indicators.

Looking ahead, Andy was optimistic about 848's prospects in light of the Procurement Act, which requires tier one suppliers to increase their use of SMEs. He noted that 848 is well positioned, having already established strong partner management practices, and is eager to engage with Deloitte's SME ecosystem. Deloitte has also helped 848 expand globally into markets such as Europe and the US.

Andy concluded by expressing cautious optimism about 848's prospects for 2025, noting a promising pipeline but concerns about talent acquisition and scaling the business quickly enough.

Emma Jones highlighted the OECD's prediction of economic growth driven by public sector spending, and encouraged delegates to be ready to capitalise on this 'sugar rush' of government investment.

Find out more about the West Midlands Combined Authority Supply Chain Transition programme here.