The NSW Government has implemented an Aboriginal Procurement Policy which sets targets for supporting Aboriginal and Torres Strait Islander business growth in NSW. There are many proven benefits to Australian Indigenous communities from increased support to Aboriginal-owned businesses and there are plenty of easy steps you can take as a business to include more Indigenous businesses in your supply chain.
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Aboriginal Procurement Policy
The NSW Aboriginal Procurement Policy (APP) commenced on 1 January 2021. The purpose of the policy is to support employment opportunities for Aboriginal and Torres Strait Islander peoples along with supporting sustainable Aboriginal business growth by driving demand through NSW Government procurement of construction, goods and services.
This policy is one of the key deliverables of the Aboriginal Economic Development framework as part of OCHRE, the NSW Government’s Plan for Aboriginal Affairs.
This plan applies to all government agencies, meaning every government tender is looking for businesses that support Aboriginal and Torres Strait Islander communities.
In terms of the APP, an Aboriginal business is one that has at least 50% Aboriginal ownership and is recognised by an organisation such as the NSW Indigenous Chamber of Commerce or Supply Nation.
Benefits of Aboriginal and Torres Strait Islander engagement
Engaging more Aboriginal and Torres Strait Islander businesses as part of your business’s supply chain has a range of far-reaching benefits, both for your business and Indigenous communities.
#1. Sustainable business and community growth
According to Indigenous supply chain hub Supply Nation, supporting Indigenous businesses has far-reaching benefits including:
Social return. For every $1 of revenue earned by Certified Aboriginal Suppliers, a social return of $4.41 is generated.
Further employment opportunities. Indigenous businesses are more likely to hire Indigenous employees — in fact, they’re 100 times more likely to employ other Indigenous workers. A key factor of strong economic development is Indigenous employment, which makes Indigenous procurement a vital contribution to sustainable communities.
Stimulating the economy. Currently, Indigenous people only own around 0.06% of businesses despite making up 3% of the Australian population. Indigenous-owned businesses are growing at a rate of 12.5% per annum, so more Indigenous procurement means more growth for the Australian economy.
#2. It makes your company more attractive in NSW Government tenders
If your supply chain involves Aboriginal and Torres Strait Islander procurement you’ll be more attractive to government agencies working towards their KPIs. All government agencies are working towards the NSW Aboriginal Procurement Policy’s targets, so if your bid will contribute to those targets you’re more likely to win the contract.
How to engage with Indigenous businesses
You may already be engaging multiple indigenous businesses without realising it. There are a lot of helpful resources available to help find authentic Aboriginal businesses.
Review your current supply chains
Supply Nation is a database which provides detailed information on verified Indigenous businesses across a range of sectors. The Supply Nation website allows users to search by product, category, service area or business name to find a business that meets their requirements.
You may unknowingly already have Indigenous businesses as part of your supply chain. You can check your current suppliers against the Supply Nation database to assess whether you already engage Indigenous businesses.
Make Aboriginal procurement part of your recruiting process
When hiring your own contractors and businesses as part of your supply chain ask them whether they qualify as an Aboriginal or Torres Strait Islander business or employ any Indigenous staff members. This can be as simple as including a tick box on your recruitment forms.
How Mango management software can make Aboriginal procurement easier
Mango is an integrated cloud based HSEQ management system. Within its Quality Management module, Mango provides supplier management applications which can make supporting Aboriginal and Torres Strait Islander businesses easier.
Using Mango, you can:
- Create recruitment forms with Aboriginal procurement parameters
- Keep a centralised database of all your Indigenous suppliers
Learn more about Mango’s supplier management module in the video below.
Get in touch today to learn more about Mango and how it can help your business with Aboriginal procurement
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