Building Fairer, More Inclusive Supply Chains
Building Fairer, More Inclusive Supply Chains
Ahead of the International Day for the Elimination of Racial Discrimination, Sandra Kerr CBE, Race Equality Director at Business in the Community, draws on our latest thematic review to highlight what needs to change to make more diverse supply chains a reality.
What SMEs and corporates told us about inclusive procurement
Business in the Community (BITC)’s latest thematic insights reveal a striking truth: while UK supply chains fuel innovation and economic growth, they are still far from inclusive.
Drawing on more than 5,000 survey responses and nearly 3,000 qualitative comments, our research highlights the real barriers faced by small and medium-sized enterprises (SMEs), particularly those led by ethnically diverse founders, and the opportunities for government and employers to drive meaningful change.
In June 2025, BITC convened its Supply Chain Long Tables, bringing SMEs and large organisations together for an honest dialogue. The format involved SMEs speaking first, with corporates listening and then sharing their own challenges. This approach exposed a clear gap in perspectives, but also a shared recognition that fairer supply chains strengthen resilience and long-term success.
What SMEs and corporates told us about inclusive procurement
1. Access and transparency
SMEs often struggle to even see opportunities. Many feel procurement processes are opaque and rely heavily on personal networks or “insider access.”
2. Complexity and capacity
Overly burdensome application processes – sometimes running to 50 pages – disproportionately disadvantage small teams competing with corporates that have specialist bid staff.
3. Finance and cash flow
Excessive insurance requirements and payment terms stretching to 90–120 days are crippling for smaller companies and undermine their stability.
4. Culture of risk and recognition
Risk-averse procurement practices often exclude SMEs. When SMEs do contribute via subcontracting, they are frequently invisible in final reporting.
5. Relationships and trust
Across the board, SMEs emphasised that personal relationships and clear communication are often the deciding factors in winning work. Mentoring and ongoing support were cited as essential.
What policymakers can do to support businesses
We need the Government to support businesses with better data on the landscape of diverse small businesses, enterprises and founders, broken down by sector and location. This will allow procurement teams to better target their outreach, widen access to opportunities to win contracts and deliver social value in local communities.
What large businesses and corporates can do to strengthen supplier diversity
Large businesses and public sector organisations should complete the Inclusive Procurement Maturity Model (IPMM) diagnostic tool to encourage good practice in inclusive supply chains. To further drive progress and success within the IPMM, organisations should also take the following steps:
As AI becomes more embedded in procurement, with a quarter of procurement professionals already using it, there is further opportunity to reduce bias and widen access if deployed responsibly. BITC’s Responsible AI Framework provides practical guidance to help organisations embed transparency and fairness into AI-enabled decision-making.
Ultimately, inclusive supply chains are not just fairer, they are smarter. By removing unnecessary barriers and strengthening collaboration, employers and policymakers can unlock growth, innovation, and economic resilience across the UK.
Join the launch event
Join BITC’s Race Campaign for the launch of the Building Fairer, More Inclusive Supply Chains Report. By attending the event, you will:
