Keen to include Indigenous businesses in your supply chains?
Approach the procurement process with an open mind, and don’t leave it until the last minute, members were told at an Australian Industry Group webinar to mark National Reconciliation Week (NRW) last week.
Too often, Indigenous engagement is an afterthought, and procurement teams are quick to box First Nation suppliers into the SME space or consider them only for basic tasks or service offerings.
“This year’s NRW theme All In means using your purchasing power to grow Indigenous economic participation,” webinar panellist Deb Barwick, of the NSW Indigenous Chamber of Commerce (NSWICC), said.
“When we include Indigenous businesses in our supply chains, we create jobs and strengthen our communities. Your procurement and partnerships can create measurable outcomes.”
The webinar, hosted by Australian Industry Group’s Vivienne Filling, explored:
What does good, equitable procurement look like?
“It’s when you consider including Indigenous suppliers every time you have a market opportunity,” Ms Barwick said.
“And remove the blinkers: many people have perceptions around what First Nations businesses are capable of and what they can deliver.
“Never assume there isn’t an Indigenous business that can do the job.
“Many of our partners, when we first work with them, are amazed at what’s available.”
NSWICC partners with more than 500 majority Indigenous-owned organisations that collectively cover more than 70 spend categories.
“We’re quite confident there’s an Indigenous business that covers nearly every kind of supplier,” Ms Barwick said.
“It's an incredibly diverse space. It’s always worth contacting us to find out which Indigenous businesses can supply for your contract.”
Webinar guests heard how some businesses keen to procure from First Nations suppliers find it difficult to balance value for money with the need to ensure equitable and inclusive procurement outcomes.
“At the chamber, we're all about ensuring our suppliers understand where their rates need to be in regard to value,” Ms Barwick said.
“We notice they're pricing themselves out of the market; it’s a constant education piece.
“The intel that comes through the conversations via our Procurement Help Desk or the work we're doing with our partners and their procurement teams is really important for us to continually ensure our businesses are competitively tendering and bidding.”
At the same time, some suppliers underestimate their value.
“During the tendering process, a lot of our members are very shy about talking about their community impact,” Ms Barwick said.
“They tend to avoid answering questions related to that space.
“We say: ‘Why aren't you talking about the nursing scholarships you guys fund every year, or why aren't you talking about this [achievement]? If you've got a competitive bid, and you're not highlighting all the incredible things you're doing, you might not get that work.’
“It's a cultural thing, so we work with them to articulate the additional value they bring as a supplier to a partner organisation.”
NSWICC is part of the National Indigenous Business Chambers Alliance, which has chambers across the country.
“The beauty of the chamber environment is being able to provide localised knowledge,” Ms Barwick said.
“We honour and respect each other's jurisdictions, but we work together.”
NSWICC, which recently celebrated its 20th anniversary, is the oldest chamber in the network.
Its member businesses have all passed its certification process, which is recognised by all levels of government.
NSWICC has a dedicated team that helps government, industry and corporate buyers adopt a business-as-usual agenda around procurement from Indigenous suppliers.
“It’s essentially a professional concierge service that makes Indigenous participation in your supply chain easier,” Ms Barwick said.
“When you contact our helpdesk, our team does the hard work for you. They determine which businesses have the capability and capacity to meet your needs and can generally provide you with a report within 24 hours.”
NSWICC also provides consulting services and training to help organisations navigate issues such as black cladding — when a non-Indigenous business represents itself as having Indigenous heritage for commercial gain — in their procurement.
“Black cladding is jeopardising the goodwill of corporate Australia, industry and government, who are trying to ensure their supply chains are open to legitimate Indigenous suppliers,” Ms Barwick said.
“Watch out for a non-Indigenous business that's existed for a long time and then suddenly has an Indigenous arm or element to its name.
“Another red flag is when there’s an Indigenous person on the marketing material, but they’re not in any conversations around the business.
“When we do certification, we look at who's controlling the decision-making in the business, who's delivering the work and who's got the financial control.
“Follow your gut. If there’s a genuine feeling that the business might not be an Indigenous business, check with us whether they've been certified.”
For successful outcomes, organisations need to engage early.
“Historically, Indigenous engagement is an afterthought, which is not good,” Ms Barwick said.
“Indigenous businesses, like any other business, need to know what work they've got coming up, but quite often they get tapped on the shoulder at the end of the contract, because somebody needs to fulfil their Indigenous engagement targets.
“If you plan your procurements well ahead, you can maximise your outcomes.
“A few months out is always a good idea. There aren’t many smaller to medium businesses that can respond when it's last minute, so the earlier, the better.”
“National Reconciliation Week is important, but we should be looking at reconciliation as part of our everyday lives,” Ms Barwick said.
“What better way to do that than by building it into our procurement processes?
“Procurement is such a powerful lever for change and economic impact. Without economic impact, all the other disadvantage we're fighting to address in our communities is harder.
“The growth of Indigenous businesses is having a significant positive impact on addressing things like employment, housing and finances.
“Procurement teams and buyers have an amazing opportunity to bring about change, as well as reconciliation.”
Contact NSWICC for further procurement support.
Interested in cultural awareness training? We’ve partnered with Gawura Cultural Immersions to provide training that creates awareness and knowledge about First Nations cultural practices and how that translates into a professional setting. The training aims to enhance cultural competency, foster inclusivity and promote respect for the experiences and perspectives of First Nations people. Find out more here.
Wendy Larter is Communications Manager at Australian Industry Group.
A former journalist for newspapers and magazines including The Courier-Mail in Brisbane and Metro, the News of the World, The Times and Elle in the UK, she is passionate about giving businesses a voice.
