Tag Archives: GovProcure 2016

Why Procurement Needs to Open the Door to Supplier Diversity

Procurement is under pressure to engage more in supplier diversity. But help is at hand from organisations who can help make connections.

open door supplier diversity

In May 2015, the Australian Government set out Indigenous company contract targets for federal departments and agencies. Starting from 0.5 per cent, the targets were set to rise to 3 per cent by 2019-20.

The joint message from the Minister for Indigenous Affairs and Minister for Finance claims, “the policy will ensure that Indigenous businesses have the chance to compete and showcase the products they have to offer.”

Supply Nation is the Australian leader in Indigenous supplier diversity. The organisation exists to connect Indigenous-owned businesses with the procurement teams of government and corporate organisations.

Supply Nation has worked closely with government to collaborate and influence the evolution of procurement policy that is now represented by the Indigenous Procurement Policy.

We sat down with Supply Nation’s CEO, Laura Berry, to talk more about the importance of this benchmark, and how organisations across Australia can strive to meet it. 

Why is engaging with Indigenous-owned businesses and suppliers so important for organisations across Australia?

Supply Nation strives to increase opportunities for Indigenous-owned businesses to supply their goods and services to large organisations. Supplier diversity puts under-represented businesses on a level playing field with other qualified suppliers when it comes to competing for the supply of quality goods and services.

One of the major benefits of opening the door to additional markets and engaging in supplier diversity, is that it facilitates the growth of Indigenous businesses. This results in increased economic activity and employment, and channels greater social value back to Indigenous communities.

In addition, data clearly shows that supplier diversity drives significant and measurable long-term business benefits, aside from the goods and services, which can ultimately provide a unique experience to customers. The addition of Indigenous-owned businesses can bring increased competitiveness, innovation and savings to the supply chain.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

Creating an environment where our members and suppliers can connect, develop relationships and identify future procurement opportunities is integral to the work of Supply Nation.

Supply Nation assists our government and corporate members with tools and strategies to embed supplier diversity within their supply chain through a tailored account management model.

We also provide support for business matching, opportunity briefings, supplier promotions, external training opportunities and networking events.

What are the biggest challenges Supply Nation faces in procurement at the moment?

As a not-for-profit organisation, the procurement challenges facing Supply Nation itself are not significant. However, for our Indigenous suppliers, the challenges are the same as those faced by small businesses across Australia.

These include the difficulty in breaking into established supply chains and conventional procurement processes, or in developing relationships with buyers.

With the Federal Government’s Indigenous Procurement Policy, there’s more pressure for government buyers to find and engage with Indigenous-owned businesses. We see a real challenge – and a real opportunity – in facilitating the connection between the businesses and procurement professionals.

What’s the first step for organisations looking to alter their processes to meet new supplier diversity requirements around Indigenous suppliers?

Step 1 would be to become a member of Supply Nation (if you’re not already)!

Take the opportunity to search for goods or services through our directory, Indigenous Business Direct. You can engage with a Supply Nation Relationship Manager who can help you navigate the process.

We can help with changing internal policies and procedures, connecting with businesses that meet your requirements, and setting up established and sustainable supplier diversity practices that are modelled on world best practice.

How can attendees benefit from attending GovProcure 2016 (where Laura is speaking)?

We have some amazing, successful and diverse Indigenous-owned businesses that are growing fast and delivering incredible products and services. I’d recommend everyone comes along to understand how they can engage not only to hit their targets, but also to get some insight into the benefits these businesses can bring to your supply chain.

Among other Australian procurement leaders, the event will also feature Ian Rudgley, CPO for the City of Sydney, a council that despite not being subject to the federal targets, has award-winning engagement and mentorship of Indigenous suppliers.

For more details on the agenda please download the brochure.

5 Biggest Challenges Facing Public Sector Procurement

Public sector procurement managers face a different set of challenges to their private sector peers. But which are the biggest challenges?

challenges public sector procurement

The procurement profession is increasingly becoming a core component of an organisation’s innovation and process-driven strategies to reduce costs, increase efficiencies and make advancements. As a result, procurement managers are feeling the pressure to remain agile and at the forefront of change.

When it comes to the public sector, however, there are numerous and unique roadblocks to successfully implementing these strategies, systems and processes into existing operations.

Procurement managers in the public sector often have a specific framework within which they are required to work. Generally these framework have an increased focus on probity, and lack the traditional supply chain model.

However, public sector procurement departments are responsible for some of the highest levels of spend in any given economy. In most countries, state and federal departments and agencies are responsible for purchasing for public services, including healthcare, infrastructure, and education.

In recent years, the spend by public sector agencies in both the UK and Australia has been measured as over 40 per cent of national GDP. With scrutiny over how money is spent, and any inefficiencies open to public criticism, public sector procurement professionals face a tricky balancing act.

As such, the public sector can both be a source of great knowledge and best practices for those in industry. Yet, they also face their own particular set of challenges.

Key Challenges for Procurement

In July, GovProcure launched a survey aimed at finding out, directly from government procurement managers, what their biggest challenges are for 2016 and beyond.

After analysing the results, the 5 main challenges have been identified so far as:

  1. Realising true benefits from data and analytics in the procurement division
  2. Ensuring the benefits of embedding sustainable procurement practices are fully realised
  3. Balancing outsourcing with maintaining high quality internal capacity
  4. Getting the most out of suppliers
  5. Developing strategies to engage effectively with Indigenous suppliers

Do you have any challenges to add? There’s still time for you to get involved and have your say in the survey. You can complete the survey here.

The final results will be shared with the audience at the GovProcure 2016 conference later this year. The event will host a panel discussion specifically designed to address the challenges identified in the survey. The session will also give procurement managers tangible ideas for improvement in the areas that matter to them most.

Let’s stop just talking about the challenges we face, and work together to overcome them.

The GovProcure 2016 conference in Sydney brings together public sector procurement managers from all levels of government each year to focus on in on opportunities to improve, collaborate and ultimately deliver more value to their organisations.

To find out more, download a GovProcure brochure here.