Building a Diverse, Inclusive and High‑Impact Public Sector Supply Chain

Public sector procurement often limits access for smaller and diverse suppliers, restricting innovation and impact. This case study shows how PSR reimagined its supply chain, removing barriers, enabling SMEs and VCSEs, and delivering more inclusive, agile and high-impact outcomes at scale.

The Challenge

Public sector procurement processes often create systemic barriers for SMEs and VCSEs, with high compliance thresholds, duplicated onboarding and complex governance disproportionately disadvantaging smaller suppliers. This limits diversity and innovation while increasing cost and friction for government.

As the UK public sector’s Total Talent solution, PSR manages ~£1.1bn of spend across 140+ organisations, requiring a model that delivers value and social impact without weakening governance or delivery confidence.

The Solution

Redesigned supplier entry and progression, shifting from compliance‑led gatekeeping to a supported, performance‑based ecosystem
Streamlined, proportionate onboarding, aligned to the service delivered, reducing duplication and cost for SMEs across PSR service lines
Dedicated Supplier Management Team, providing hands‑on support to help suppliers secure required accreditations
Speedier onboarding, enabling rapid, compliant mobilisation of specialist SMEs for urgent programmes
Fair governance reset, where all suppliers start as preferred partners and progress based on evidenced performance, not size or history
Supplier Management Framework, giving equal visibility of expectations, metrics and routes to growth

Inclusive Engagement by Design

PSR actively enhances supplier capability through key initiatives:

An annual engagement plan ensures all suppliers, including those with no live work, understand available opportunities and expectations
SME and VCSE sessions provide practical advice on government challenges and direct interaction with PSR decision-makers
Early market engagement and RFIs attract new and underrepresented suppliers to the ecosystem
Creation of the AMS Diversity & Inclusion Alliance, enabling SME and VCSE specialists to co‑design inclusive hiring improvements

Proven Results

75% of PSR’s 500+ suppliers are SMEs, demonstrating diversity at scale, not aspiration

Supplier‑generated social value tripled year‑on‑year, growing from £50k (2023–24) to £150k (2024–25)

Expanded workforce diversity outcomes, including attracting older workers and supporting mothers returning to work

Faster mobilisation and increased agility,
including a niche SME fully operational
within four days for the Home Office
Queue Management Programme

Why It Matters

PSR shows that inclusive procurement strengthens delivery rather than diluting control. By removing unnecessary friction and aligning opportunity to performance, PSR has built a supply chain that is more agile, more innovative and better equipped to respond to urgent public sector needs. This approach not only widens access for diverse suppliers but also improves outcomes for government by accelerating mobilisation, increasing resilience and embedding social value into everyday delivery. The result is supply chain diversity operating in practice, not policy, delivering measurable value for government, opportunity for suppliers and meaningful impact for communities at scale.