Lessons learned in Tāmaki Makaurau
29 May 2023
Auckland Council Group share their learnings from their Supplier Diversity journey
As a group, Auckland Council, Auckland Transport and Watercare have pioneered supplier diversity in Aotearoa and set some pivotal precedents for both the public and private sector to follow. They have used their collective buying power to create a more inclusive Auckland economy.
In 2016, Auckland Council, Auckland Transport and Watercare came together to create the Auckland Council Group Sustainable Procurement Framework. The aim of the framework is for all three organisations to collectively use their spending power to promote the social, economic, environmental, and cultural well-being of Auckland.
The framework allowed them to signal to their organisations, suppliers, and communities that they would all be looking to generate positive impact through their spend. It created a clear and consistent message that all stakeholders could understand. Since the launch of the framework each organisation has been on its own journey to implement sustainable procurement.
One of the key tactics that all three organisations has leaned into is Supplier Diversity.
Auckland Council has a supplier diversity target where 5% of the value of all direct contracts are to be awarded to diverse suppliers (Māori and/or Pasifika owned business or social enterprises).
Auckland Transport has a supplier diversity target where 2% of the value of procurement spend with Māori-owned businesses by the end of 2023.
Watercare has a supplier diversity target where 5% of total spend is to be with Māori businesses by the end of FY2025.
Whilst the Council group came together to set one tone to the market about their sustainable procurement priorities, they have all had very different journeys when it comes to implementation.
They have all had stories of success of directly and indirectly engaging Māori businesses, Pasifika businesses and social enterprises and have seen the benefits of these relationships.
Over the past 6 years the group has learnt what works, what doesn’t and what needs to be done to get organisational cut through and success. While each organisation has similar aspirations, their approaches to getting there have been different.
Read the full practitioner case study to see the Lessons Learnt of each organisation.