Big businesses have no plans to increase contracting with SMEs – survey

Paul Snell is managing editor at Supply Management
posted by Paul Snell
16 July 2014

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17 July 2014 | Paul Snell

The vast majority of large businesses have no plans to increase the number of SMEs they contract with.

A survey carried out by IFF on behalf of Achilles, found just 12 per cent of companies plan to expand the amount of small businesses they contract with. Eighty per cent will keep the numbers the same, and 8 per cent don't intend to give them more contracts or did not know what they would do.

Some 67 per cent of companies said they use small suppliers regularly, but they tend to be awarded just up to a quarter of all deals.

The poll of 146 procurement managers at companies with more than 250 employees, also found 26 per cent of buyers were concerned about the financial stability of SMEs. There were also worries about adherence to standards and regulations, although benefits such as flexibility, efficiency and being closer to customer needs were cited as advantages in contracting with small businesses.

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