Small and medium-sized enterprises (SMEs) play a critical role in the UK economy — driving innovation, creating jobs, supporting job creation, and generating wealth by supplying specialist products and services that keep essential industries moving. Within healthcare, their contribution is equally vital. SMEs also have a positive impact on local communities and the broader public sector, supporting economic development and social value. Yet despite their potential, SMEs capture only a small share of NHS procurement spend — around 19% as of 2024, compared to their wider economic footprint.
The NHS relies on a vast supply chain, from medical devices and pharmaceuticals to logistics, digital tools, and estate management. The NHS Supply Chain operates as a company managing procurement and logistics, ensuring supply continuity for critical healthcare products. Companies of all sizes, especially SMEs, contribute to the system by bringing innovation, agility, and cost-effective solutions to all these areas, often delivering 10–30% more efficiently than large firms. Empowering SMEs to participate fully isn’t just good for small businesses — it’s good for patients and for the sustainability of the NHS itself. The commitment of SMEs to supporting health outcomes across different sectors, such as health and social care, strengthens the resilience and effectiveness of the NHS supply chain.
Recent reforms under the Procurement Act 2023 are designed to simplify public procurement and make NHS supply chains more accessible. However, barriers remain — and navigating the NHS procurement landscape can still feel daunting for many smaller suppliers.
This article explores both the barriers and emerging opportunities for SMEs in the NHS supply chain — and how, with the right guidance, small businesses can position themselves for long-term success. Looking to supply the NHS? Schedule a free demo to see how HCI Contracts can help you identify and win the right opportunities.
Understanding the NHS Supply Chain: An Overview for SMEs
The NHS supply chain is one of the largest and most complex procurement networks in Europe. At its centre is NHS Supply Chain (SCCL) — the organisation responsible for sourcing, contracting, and delivering hundreds of thousands of products and services to NHS hospitals and trusts, with a strong focus on efficient distribution to healthcare organisations across the country. Its online catalogue contains over 600,000 items, covering everything from consumables to cutting-edge medical technology, including essential items such as food.
However, the system is not entirely centralised. Alongside SCCL, procurement also takes place at regional and local levels:
- Procurement hubs (such as London Procurement Partnership or NHS Commercial Solutions) run regional frameworks.
- Individual NHS trusts buy directly for specialised local needs or emergency responses.
- Framework agreements underpin much of this activity — long-term contracts that pre-approve suppliers for specific categories of goods or services.
For SMEs, understanding these layers — and which frameworks or hubs their offering best aligns with — is essential. Managing the entire supply chain is crucial for resilience, as disruptions at any point can impact service delivery. Getting listed on the NHS Supply Chain catalogue opens the door to national visibility, while regional frameworks can provide a stepping stone to wider opportunities. Achieving supply chain excellence is a key goal for the NHS Supply Chain and its partners.
Key Barriers for SMEs Entering the NHS Supply Chain
Despite growing awareness of their value, SMEs still encounter several hurdles when trying to enter or scale within NHS procurement systems. Optimizing the early stages of procurement, such as tendering and pre-qualification, is crucial for SMEs to overcome initial barriers and participate more effectively.
The most common barriers include:
To better support potential suppliers and manage risks, it is essential to regularly review procurement processes and supply chain management practices. This helps ensure that systems are efficient, inclusive, and responsive to the needs of both SMEs and the NHS.
1. Complex Procurement Frameworks and Bureaucratic Processes
NHS tendering remains intricate, with extensive documentation, compliance checks, and repetitive form-filling across multiple portals. To improve efficiency, it is essential to streamline each line of the procurement process for SMEs. Many SMEs lack dedicated bid teams, meaning senior staff must divert time from day-to-day operations. This increases the cost of bidding and discourages participation.
2. Limited Awareness of How to Get Started
Information on how to get on the NHS Supply Chain is often fragmented or technical. Without clear signposting, SMEs can struggle to know where to register, which frameworks to target, or how to contact NHS buyers. While new guidance and SME advisory forums are improving this, many small businesses still find the process opaque. Better guidance and technology can enable SMEs to participate more effectively by providing clearer pathways and support.
3. Financial and Compliance Constraints
From ISO certifications to insurance thresholds and data governance requirements, the compliance load on SMEs can be heavy. Achieving and maintaining certifications such as ISO 9001 or ISO 13485 can be expensive, and high costs can deter SMEs from participating, while long payment cycles can create cash flow strain. The Procurement Act 2023’s introduction of mandatory 30-day payment terms is a welcome improvement, and these changes can lead to savings for SMEs and the NHS, but financial pressures persist.
4. Digital Transformation Challenges
The NHS increasingly expects suppliers to integrate with systems such as Peppol e-invoicing and GS1 barcoding (Scan4Safety). For smaller suppliers, upgrading systems or implementing small business supply chain management software can require investment in both technology and training — a barrier for those without digital capacity. Additionally, allocating sufficient resources—such as materials, technology, and skilled personnel—for digital transformation can be a significant challenge.
Tip: Struggling with digital compliance? HCI Contracts helps SMEs assess and streamline their procurement systems for NHS readiness. Book a free consultation.
Opportunities for SMEs in the NHS Supply Chain
While the challenges are real, the landscape is shifting in SMEs’ favour. There are increasing growth opportunities for SMEs to expand their role and impact within the NHS supply chain. The NHS and government alike are actively opening the door for smaller suppliers. SMEs bring numerous benefits to the NHS supply chain, such as driving innovation, increasing flexibility, and supporting local economies. By fostering innovation and collaboration, SMEs can deliver significant value to the modern NHS supply chain.
1. Pro-SME Policy Reforms
The Procurement Act 2023 simplifies bidding, centralises contract data, and introduces open frameworks that can be re-entered over time — allowing SMEs to join more flexibly. These reforms are part of broader public sector efforts to support SME participation in procurement and supply chains. It also mandates transparency in SME spending targets and ensures prompt payment down the supply chain.
2. NHS SME Action Plan (2024–2026)
NHS England’s SME Action Plan commits to greater engagement, demonstrating a strong commitment to supporting SMEs and fostering positive impacts on local economies through job creation and community involvement, as well as providing clearer guidance and broader use of Dynamic Purchasing Systems (DPS) — open frameworks where SMEs can join anytime. These systems lower barriers to entry and favour innovation.
3. Localised and Niche Supply Opportunities
Integrated Care Systems (ICSs) and regional trusts increasingly prioritise local procurement to build resilience and community value. SMEs that can supply rapidly or meet specialist needs — from medical consumables to digital tools — are well-positioned to benefit. Smaller companies can work with larger organisations through a collaborative approach, using open dialogue and integrated systems to meet NHS needs more efficiently.
4. Sustainability and Innovation
The NHS’s Net Zero by 2045 goal creates vast opportunities for SMEs offering sustainable products or services. SMEs can have a significant impact on the NHS supply chain by introducing innovative solutions and driving meaningful change towards sustainability. With sustainability now weighted in tender scoring (a minimum 10% social value criterion), smaller businesses can compete effectively and gain a competitive advantage by showcasing green credentials and local impact. Explore tailored SME support services with HCI Contracts’ consulting solutions. SMEs play a pivotal role in driving sustainability and innovation within the NHS supply chain.
How to Get on the NHS Supply Chain as an SME
Entering the NHS supply chain takes preparation but is achievable with the right strategy. Here’s a simplified roadmap:
- Research your market – Identify where your product or service fits within NHS Supply Chain categories and frameworks, and assess your production capabilities to ensure you can meet demand.
- Meet core compliance standards – Obtain the relevant ISO certifications, ensure MHRA registration (if applicable), and prepare policies on quality, data security, and sustainability.
- Register on procurement portals – Create accounts on Find a Tender (FTS), Contracts Finder, and the NHS Jaggaer eTendering system.
- Engage early with NHS buyers – Attend “Meet the Buyer” events or webinars to understand upcoming procurements.
- Partner strategically – Consider joining consortiums or subcontracting with prime suppliers already on NHS frameworks, as this can help potential suppliers gain valuable experience.
Not sure where to start? HCI Contracts can assess your eligibility and help you apply to the right NHS frameworks.
Regularly review your processes, supplier engagement strategies, and supply chain performance to improve your chances of success.
Navigating the NHS Supply Chain Catalogue and Frameworks
The NHS Supply Chain catalogue is the central platform where NHS trusts order approved goods and services. For SMEs, being listed means immediate national exposure — but getting there involves joining a framework agreement first. The NHS Supply Chain is committed to delivering best value to healthcare providers by negotiating cost-effective, high-quality products and services through strategic sourcing and efficient procurement.
Frameworks pre-qualify suppliers based on price, quality, and compliance. Once approved, products appear on the NHS catalogue, allowing trusts to purchase directly without running separate tenders. For SMEs, this eliminates repeated bidding and significantly reduces administrative overhead. These frameworks also drive savings and efficiency by streamlining procurement processes, reducing costs, and supporting better decision-making for both suppliers and the NHS.
Dynamic frameworks, in particular, are a game changer. They remain open for new entrants, giving SMEs multiple chances to join rather than waiting years for renewal cycles. Tip: Unsure which framework suits your business? Talk to HCI Contracts— we can help identify the best fit and manage your application from start to finish.
Building Long-Term Relationships Through NHS Supply Chain Contacts
Winning a contract is only the beginning. Successful SMEs build strong, ongoing relationships with NHS procurement teams. This includes:
- Keeping communication proactive and transparent, while understanding the needs of customers.
- Attending supplier relationship meetings or category updates, and leveraging resources to strengthen relationships.
- Demonstrating reliability, innovation, and compliance over time, and recognizing the responsibility suppliers have to maintain high standards.
NHS procurement contacts — from category managers to trust buyers — value consistency and problem-solving. Building trust through responsiveness and quality delivery can open doors to future opportunities, extensions, or referrals across the system. Need an introduction or help navigating NHS networks? Talk to us today.
Best Practices: SME Supply Chain Management for NHS Contracts
Once you’ve joined the NHS supply chain, sustaining success depends on continuous improvement. Understanding global supply chains and their impact on the NHS is crucial, as international disruptions can affect the reliability and resilience of supply networks.
- Adopt small business supply chain management software to track inventory, automate invoices, and integrate with NHS systems.
- Maintain compliance by keeping all certifications and policies up to date through tools like the Evergreen Supplier Assessment.
- Monitor KPIs such as on-time delivery rates and quality scores to meet NHS performance standards.
- Embed sustainability and social value — reduce carbon footprint, source locally, and document community contributions. By adopting responsible supply chain practices, SMEs can make a positive difference in the world and contribute to global sustainability. Need help improving your supply chain systems? Book a free consultation with HCI Contracts.
Leveraging clinical expertise is also essential for ensuring high-quality supply chain management that meets the needs of the NHS and its patients.
Partnering with HCI Contracts for NHS Supply Chain Success
For SMEs, the NHS supply chain represents both a challenge and a vast opportunity. The Procurement Act 2023 and NHS reforms are creating a more level playing field, but success still requires preparation, compliance, and persistence.
With the right guidance, SMEs can unlock meaningful partnerships with the NHS — delivering innovation, value, and resilience across the healthcare system.
HCI Contracts helps businesses like yours every step of the way — from identifying the right frameworks to ensuring bid-readiness, compliance, and long-term performance. Let’s get your business ready for the NHS. Speak to an expert at HCI Contracts today.