Supply Chain Transition (Investment Zone)

Tender description

There are many important trends in the global economy which are creating huge change in how businesses operate. Massive and rapid technological advances, Covid-19 and its aftermath, the push to decarbonise and adapt to climate change as well as geopolitical tensions and their response are altering how businesses operate across many areas such as how they train, recruit and manage staff, how products are made, how services are delivered and how customers and suppliers are managed. The global competition in older industries (e.g., Automotives) has pushed prices down and forced SME companies to be as competitive as possible. This means many small businesses operate on lower margins, where superfluous costs must be trimmed so they can focus on essentials. As a result of this increased competition, the ability of many smaller firms in the West Midlands to navigate and adapt to the new requirements and practices is limited. It takes a lot of resources for companies to plan and prepare for meeting these requirements, let alone the resources required for investment in new plant and equipment, gaining new certifications or hiring new managers and employees etc. Many companies don’t have these resources, and selling their business is sometimes an easier solution. The Supply Chain Transition (IZ) Programme hopes to inspire and equip hundreds of businesses in the West Midlands to take advantage of opportunities in growing sectors of the global economy. Businesses will be engaged at different stages of their journey – from those just beginning to explore new options, to those who need more in-depth analysis of costs and risks, to those who are committed to change and are seeking to invest in necessary accreditations, training, research and development or capital equipment. The programme will be funded by the West Midlands Investment Zone (IZ). The Investment Zone aims to attract investment and jobs into areas which have traditionally underperformed economically but have the potential to be areas of high growth and support the levelling up agenda. The West Midlands Investment Zone will target the Advanced Manufacturing sector. Lot 1: The procurement will involve: - Supporting SMEs based in the seven constituent local authorities of the West Midlands Combined Authority area, plus Warwick District Council, to pivot into new supply chain opportunities related to advanced manufacturing, in particular: - Smart energy systems - Electric light vehicles and associated battery storage - Med-tech and health-tech - Manufacture of Future Housing - Aerospace - Working with a key customer or customers (i.e. organisations that have committed to investing significantly and growing their supply chains) to design and deliver the support. - Marketing and communication activity to recruit and select appropriate businesses onto the programme. - Preparation of an audit of current strengths, weaknesses and opportunities of each participant business. - Preparation of an action plan detailing how participant businesses can respond to the audit, using the following services provided by the contractor: - One-to-one intensive, industry-specific technical advice and guidance - A £6 million fund for collaborative research and development projects delivered in collaboration with research institutions - A £2.5 million budget to pay for leadership and management training at Level 4 and 5 for participant businesses. This will be awarded as a Services Contract. The terms and conditions used will be those specified in our draft contract. A copy of the draft contract applicable to this commission will be included with the published tender pack. The contract for this programme is estimated to run from April 2025 to March 2029. Additional information: The WMCA intends to award one contract to one (lead) supplier. The WMCA encourages a delivery model that brings together a range of expertise, through consortium or sub-contracting arrangements, with a lead supplier named in either model. Please note, there will be no consortium management fee available, and any sub-contracting arrangements are expected to be managed by the lead contractor.