Developing a Social Procurement Strategy that is an asset, not a liability
The Victorian government are rolling out social procurement requirements that all departments and agencies procuring goods and services must implement. The weighting allocated to social procurement can be 5% for smaller spends to 10% or higher for larger value projects.
So for companies doing business with the State of Victoria social procurement is something they will have to understand, adopt and implement themselves as they respond to invitations to tender. There is much more involved than hiring people that are LGQBTI, disabled or Indigenous.
State of Victoria Guidance requires that Organisations’ “Social Procurement Strategy must:
- outline the organisation’s business strategy (including strategic priorities and objectives), procurement profile and social procurement opportunity analysis
- clearly articulate the social and/or sustainable procurement objectives that the organisation will prioritise in its procurement activities for the coming year
- establish roles and responsibilities to ensure compliance with Social Procurement Framework requirements
- incorporate social procurement into the organisation’s capability development planning
- incorporate social procurement into the organisation’s supplier engagement planning / develop a supplier engagement plan that incorporates social procurement
- incorporate a reporting and management framework to monitor progress and performance, promote continuous improvement and review the Social Procurement Strategy”
While on first pass these social procurement requirements can be daunting and another liability with everything else going on in this strange new world we find ourselves in, there are big opportunities too.
The good news is that by becoming an early adopter of the guidance provided by the State of Victoria and adapting it to develop your organisations social procurement strategy and framework, a lot of the work is already done for you. And what you do in this space will align with what government departments and agencies (and their head contractors) who are your customers are doing helping to score well against the 10%+ weighting.
By progressively implementing it into your own supply chain you can score even better by reporting on and getting credit for not only what your own organisation is doing in response to this social procurement policy but what your whole supply chain is doing.
If you would like to know more about how you can develop a social procurement strategy that is an asset without it becoming a liability please get in touch to discuss.
All the best
One World Consulting
Director OWC (and Co-Founder of Clann) - One World Consulting
A strategic procurement specialist with over 20 years of financial, commercial and contractual and strategic partnering project experience working in both the private and public sectors. A graduate of the Australian Institute of Company Directors and holding a Master of Business Degree in Collaborative Business Models, I have developed a range of strategic partnering and project (and program) decision-making tools and am proficient with the Victorian Government Investment Management and Investment Lifecycle Guidelines having prepared more than 20 public sector project business cases that were approved and funded. My experience also includes working on major bids and tenders both Australia-wide and internationally to advising customers and suppliers on major projects in a broad range of sectors and including government departments and agencies providing commercial, strategic, procurement and partnering /alliancing advice.One World Consulting