Supplier diversity and progressive procurement
At ACE New Zealand we support and value Māori businesses. We understand that lifting wellbeing outcomes for Māori through progressive procurement offers broad social and economic benefits for the whole of Aotearoa.
About
At ACE New Zealand we support and value Māori businesses. We understand that lifting wellbeing outcomes for Māori through progressive procurement offers broad social and economic benefits for the whole of Aotearoa.
We support the Government’s Progressive Procurement Policy – Te Kupenga Hao Pāuaua – and the target of 8% of government contracts being awarded to Māori businesses. We understand that applying a progressive procurement approach to the government’s significant spend provides a great opportunity to address inequities faced by Māori and encourages a healthy market essential for a resilient and sustainable future.
We acknowledge our role, and the role of our members, in contributing to the success of this policy. We do so by supporting all our members to adopt new ways of working that contributes to the achievement of the progressive procurement target and objectives, and committing as an organisation to do the same.
See the ACE New Zealand Progressive Procurement Policy
Benefits
Supporting all businesses to compete for work supports a healthy market through increasing competition, growing local expertise, and creating jobs.
Supporting diversity positively impacts innovation and drives competitiveness.
An article by Amotai, a business that works with government, corporate and iwi organisations to unlock procurement opportunities and enable meaningful connections with Māori and Pasifika businesses, identifies the top five reasons to procure from Māori businesses.
- Closing the wealth gap – diverse businesses play a critical role in closing the racial wealth gap.
- Higher employment rates for Māori – indigenous businesses are more likely to create jobs in their local communities compared to other business.
- Māori businesses create role models and culturally safe spaces – Māori business owners are role models in their communities for whānau, community, and employees. Cultural values are intrinsically embedded in the day-to-day operation creating a culturally safe environment.
- Innovation – Māori authorities and SMEs are more likely to export and have higher rates on innovation and R&D than other New Zealand firms. Many minority businesses are also small enterprises that tend to be nimbler and more innovative.
- Competitive advantage – successful supplier diversity can create competitive advantages to companies. Diversifying the supply chain can provide companies with new revenue opportunities, creation of new markets, and access to diverse customer bases.
Read the article Top 5 reasons to procure from Māori and Pasifika businesses
Case studies
Yakas Construction and Kāinga Ora
Māori business Yakas Construction won their first government contract with Kāinga Ora to build six state homes in Kaikohe, where there's a critical housing shortage. Yakas got targeted capability uplift support, including getting tender-ready, through our progressive procurement kaupapa.
Watch the video of Yakas Construction and Kāinga Ora
Height Project Management, Waka Kotahi and KiwiRail
Waka Kotahi and KiwiRail are delivering the New Zealand Upgrade Programme (NZUP), the Government’s $8.7 billion investment in rail, public transport, walking, cycling and roads. Height PM developed a roadmap to help guide successful progressive procurement for the programme.
Read the Māori Economic Opportunities Roadmap New Zealand Upgrade Programme
Tools and resources
Increasing supplier diversity
Amotai connects Māori and Pasifika-owned businesses with buyers wanting to purchase goods, services and works.
Supporting Māori businesses to become tender-ready
The Social Procurement Toolkit developed by Height Project Management and Auckland Council provides a practical way to embed and deliver social outcomes in contracts and projects.
Applying broader outcomes in construction procurement
The Construction Sector Accord has published new guidance to support government buyers and industry suppliers in applying broader outcomes in construction procurement.