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Leveraging Social Procurement Introduction to Social Procurement for local government Rhianna Dean, Social Traders
Acknowledgement 2 I would like to acknowledge the the Wurundjeri people of the Kulin Nation, the Traditional Custodians of the country I am joining you from, and acknowledge their continued connections to land, waterways and community. I pay my respect to their Elders past, present and emerging. I extend that respect to the traditional custodians of Country throughout Australia and all Aboriginal and Torres Strait Islander people who may be joining us today.
What well cover today 3 What do we mean when we say Social Procurement? What are some local councils already doing to leverage social procurement? What are the different things you can do to strengthen social procurement in your context? What are some practical examples of how to embed social procurement into your purchasing processes? Working towards the unique role local government can play in building social enterprises?
4 What is social procurement? When buyers use their purchasing power to achieve social outcomes beyond the products and services they require, they are undertaking social procurement.
5 A cross functional approach to driving social value Functional Silos Strategic Social Procurement Procurement Community Services Organisation
6 What are some examples of the types of social impact that you think could be supported through this type of procurement? Do you already have any social targets, goals or commitments to your community that align to these impact areas? Breakout - Impact in your context
7 Social Procurement 7 SOCIAL PROCUREMENT Keeping money in local economies Employment for marginalised groups Economic empowerment Local Content Local Business Direct Employment Social Enterprise Indigenous Business Women Owned Business
8 Social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment. A Social Traders certified social enterprise: 1. Has a defined primary social, cultural or environmental purpose consistent with a public or community benefit 2. Derives a substantial portion of their income from trade; and 3. Invests efforts and resources into its purpose such that public/community benefit outweighs private benefit What is a social enterprise?
9 Social Traders role is to work as the broker between Business and Government & social enterprise Social Traders Services Access & support Staff engagement Strategy development Leadership network Credibility Connect with Customers Join the community Help grow your business Business & Government Social Enterprise
social procurement workshop presentation
11 600+ ST certified social enterprise categories Facilities Maintenance (Cleaning, Repairs, etc) Catering & Hospitality & Venue Hire Business Services Community & Social Services Merchandise & Products (including Office) Marketing and Communications HR, Training, Education & Healthcare Services Industrial Production & manufacture Gifts or rewards Merchandise & Products Transport, Freight & Logistics Travel & Tourism Other Services (Design, Technical, Personal, Real Estate) Renewable Energy
12 Categories in NSW Social Enterprise Categories by State 0 5 10 15 20 25 30 35 40 45 Advertising & media Building products & materials Business & Administrative Services Cleaning Services & Equipment & Supplies Community & Social Services Financial and Insurance Services Food & Beverage Products Gifts or rewards Horticulture & arboriculture Industrial Production & manufacture Legal Services Mechanical Services Music & Games & Toys & Arts & Crafts & Educational Parking & Traffic Services & Equipment Printing and Distribution Services Renewable Energy Signs & Barriers Training & Education Services Travel & Tourism Waste Management & Landfill NSW NSW
13 Do you already know of any social enterprises in your area? What services do they provide? Crowdsource SEs in your area
14 Why are others doing Social Procurement? Meeting key stakeholders expectations Government efficiency Contractual targets Staff attraction and retention Customers - competitive advantage and compliance Shareholders/Investors - delivering greater value Social license Its the right thing to do 14
15 Local Governments - Customers Kylie Flament General Manager Green Connect Illawarra
16
17 Local Governments - Strategic
18 Survey, Stakeholder Working Group, Literature, Community Strategy and Action Plans that link to Vic Govt and Council Innovation pathways and engagement Capacity and Funding Procurement Public Awareness https://shaping.banyule.vic.gov.au/SocialEnterprise Banyule
19 Local Governments Anchor Institution Anchors are organisations and institutions based in a place - whether that be a suburb, town, city or region - for the long term, with a mission or purpose that is tightly connected to that place. They are significant because they are among the largest employers and spenders in that place, and can align their resources (e.g. HR, estates, construction, facilities, financial assets, procurement) to benefit the community in which they are anchored (beyond their core services). - Impact Investment Provocations Series, Yunus Centre, Griffith University
20
21 Darebin Council & Outlook Environmental A partnership that has lead to incredible scale and growth Great Lakes Council & Community Resources Multiple enterprises now under one community owned banner Local Governments - Partners
22 What model would work well in your local area? Whats youre unique role? Have you been part of similar approaches before, or are you now? Breakout where are you best placed?
23 CHALLENGES Change from familiar suppliers Scale and capacity may not match - current gap in demand and supply Existing procurement practices, standard agreements, contracts, etc Early planning and supplier engagement Social enterprise capacity to respond to standard market approaches risk appetite, lean sales overheads, may not have BD staff Internal engagement and understanding
24 Social Procurement in practice Tier 1 Tier 2 Tier 3 Tier 4 Waste Contract Awarded to Outlook Environmental SE Landscaping Contract Awarded to Commercial Org Nursery Contract Awarded to Yarraview Nursery SE Traffic Control Contract Awarded to Commercial Org Labour Hire Contract Awarded to WISE Employment SE Engineering Expertise Contract Awarded to Commercial Org Niche Engineering Contract Awarded to Commercial Org Web Design Contract Awarded to SKYS Design SE
25 Market approach Direct Buying directly from a certified social enterprise that is delivering on the objectives (or Indigenous Business, Disability Enterprise, etc) When there is a relevant supply market Can simplify monitoring of social outcomes through contract management Indirect Where the buyer engages a mainstream/commercial supplier and requires them to deliver social outcomes through the process. This can include requiring spend with social enterprise. When there is not a relevant supply market Can include a mixed field of social enterprise and commercial Usually more complex social indicator measurement and monitoring
26 Practical Levers in the Procurement Life Cycle Procurement project planning Opportunity analysis Supply market analysis Tendering, assessment & selection Appropriate scope for target suppliers Managing supply arrangements Performance monitoring and review Evaluating & learning Evaluating social outcomes Learning and improving social procurement practice 26 Design go to market approach Evaluate for social impact Establish appropriate engagement relationship
27 Sourcing Strategies No Strategy When to Apply 1 UNBUNDLE SE supply market does not have the capacity to meet scope 2 BUNDLE Size of scope needs to be increased to enable a sustainable social solution (or to maximise social impact) 3 EXPRESSION OF INTEREST Limited knowledge of how social impact could be addresses and/ or desire to encourage innovation 4 SOURCE FROM SE/IB ONLY Known SE supplier/s with current capability and where internal processes allow selective sourcing 5 EVALUATION CRITERIA FOR SOCIAL IMPACT Looking for all participants to demonstrate social value desire to send message to the market on importance of social value to organisation 6 EVALUATION CRITERIA FOR SUBCONTRACTING TO SE/IB The category/ project does not support direct SE purchasing, but Tier 1/ Tier 2 suppliers can be mandated/ encouraged to incorporate SEs in their supply chain 7 INCORPORATE SE/IBS INTO OPEN PANELS Panels are a key sourcing tool used by the business with there is an opportunity to encourage/ enable SE to participate 8 ESTABLISH SE/IBS ONLY PANELS SE capacity and diversity in selected category enables SE only panels and this approach is supported by internal policy 9 SUPPLIER RELATIONSHIP MANAGEMENT Relationships and structured SRM processes enable engagement with existing long-term suppliers to explore social impact opportunities 10 PARTNERSHIPS A specific match of SE supplier capability, a pipeline of work and internal openness to partnering Long-term opportunities for innovation around shared social objectives 27
28 What would be a live opportunity in your context? This can either be a real example or something realistic in the future. What sourcing strategies or levers might work best for that opportunity? The opportunity in your context
29 Building the network of local social enterprise contacts Connecting your region with national opportunities Combining to create connections and value Creating shared value for your council Your unique role in the sector!

More Related Content

social procurement workshop presentation

  • 1. Leveraging Social Procurement Introduction to Social Procurement for local government Rhianna Dean, Social Traders
  • 2. Acknowledgement 2 I would like to acknowledge the the Wurundjeri people of the Kulin Nation, the Traditional Custodians of the country I am joining you from, and acknowledge their continued connections to land, waterways and community. I pay my respect to their Elders past, present and emerging. I extend that respect to the traditional custodians of Country throughout Australia and all Aboriginal and Torres Strait Islander people who may be joining us today.
  • 3. What well cover today 3 What do we mean when we say Social Procurement? What are some local councils already doing to leverage social procurement? What are the different things you can do to strengthen social procurement in your context? What are some practical examples of how to embed social procurement into your purchasing processes? Working towards the unique role local government can play in building social enterprises?
  • 4. 4 What is social procurement? When buyers use their purchasing power to achieve social outcomes beyond the products and services they require, they are undertaking social procurement.
  • 5. 5 A cross functional approach to driving social value Functional Silos Strategic Social Procurement Procurement Community Services Organisation
  • 6. 6 What are some examples of the types of social impact that you think could be supported through this type of procurement? Do you already have any social targets, goals or commitments to your community that align to these impact areas? Breakout - Impact in your context
  • 7. 7 Social Procurement 7 SOCIAL PROCUREMENT Keeping money in local economies Employment for marginalised groups Economic empowerment Local Content Local Business Direct Employment Social Enterprise Indigenous Business Women Owned Business
  • 8. 8 Social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment. A Social Traders certified social enterprise: 1. Has a defined primary social, cultural or environmental purpose consistent with a public or community benefit 2. Derives a substantial portion of their income from trade; and 3. Invests efforts and resources into its purpose such that public/community benefit outweighs private benefit What is a social enterprise?
  • 9. 9 Social Traders role is to work as the broker between Business and Government & social enterprise Social Traders Services Access & support Staff engagement Strategy development Leadership network Credibility Connect with Customers Join the community Help grow your business Business & Government Social Enterprise
  • 11. 11 600+ ST certified social enterprise categories Facilities Maintenance (Cleaning, Repairs, etc) Catering & Hospitality & Venue Hire Business Services Community & Social Services Merchandise & Products (including Office) Marketing and Communications HR, Training, Education & Healthcare Services Industrial Production & manufacture Gifts or rewards Merchandise & Products Transport, Freight & Logistics Travel & Tourism Other Services (Design, Technical, Personal, Real Estate) Renewable Energy
  • 12. 12 Categories in NSW Social Enterprise Categories by State 0 5 10 15 20 25 30 35 40 45 Advertising & media Building products & materials Business & Administrative Services Cleaning Services & Equipment & Supplies Community & Social Services Financial and Insurance Services Food & Beverage Products Gifts or rewards Horticulture & arboriculture Industrial Production & manufacture Legal Services Mechanical Services Music & Games & Toys & Arts & Crafts & Educational Parking & Traffic Services & Equipment Printing and Distribution Services Renewable Energy Signs & Barriers Training & Education Services Travel & Tourism Waste Management & Landfill NSW NSW
  • 13. 13 Do you already know of any social enterprises in your area? What services do they provide? Crowdsource SEs in your area
  • 14. 14 Why are others doing Social Procurement? Meeting key stakeholders expectations Government efficiency Contractual targets Staff attraction and retention Customers - competitive advantage and compliance Shareholders/Investors - delivering greater value Social license Its the right thing to do 14
  • 15. 15 Local Governments - Customers Kylie Flament General Manager Green Connect Illawarra
  • 16. 16
  • 18. 18 Survey, Stakeholder Working Group, Literature, Community Strategy and Action Plans that link to Vic Govt and Council Innovation pathways and engagement Capacity and Funding Procurement Public Awareness https://shaping.banyule.vic.gov.au/SocialEnterprise Banyule
  • 19. 19 Local Governments Anchor Institution Anchors are organisations and institutions based in a place - whether that be a suburb, town, city or region - for the long term, with a mission or purpose that is tightly connected to that place. They are significant because they are among the largest employers and spenders in that place, and can align their resources (e.g. HR, estates, construction, facilities, financial assets, procurement) to benefit the community in which they are anchored (beyond their core services). - Impact Investment Provocations Series, Yunus Centre, Griffith University
  • 20. 20
  • 21. 21 Darebin Council & Outlook Environmental A partnership that has lead to incredible scale and growth Great Lakes Council & Community Resources Multiple enterprises now under one community owned banner Local Governments - Partners
  • 22. 22 What model would work well in your local area? Whats youre unique role? Have you been part of similar approaches before, or are you now? Breakout where are you best placed?
  • 23. 23 CHALLENGES Change from familiar suppliers Scale and capacity may not match - current gap in demand and supply Existing procurement practices, standard agreements, contracts, etc Early planning and supplier engagement Social enterprise capacity to respond to standard market approaches risk appetite, lean sales overheads, may not have BD staff Internal engagement and understanding
  • 24. 24 Social Procurement in practice Tier 1 Tier 2 Tier 3 Tier 4 Waste Contract Awarded to Outlook Environmental SE Landscaping Contract Awarded to Commercial Org Nursery Contract Awarded to Yarraview Nursery SE Traffic Control Contract Awarded to Commercial Org Labour Hire Contract Awarded to WISE Employment SE Engineering Expertise Contract Awarded to Commercial Org Niche Engineering Contract Awarded to Commercial Org Web Design Contract Awarded to SKYS Design SE
  • 25. 25 Market approach Direct Buying directly from a certified social enterprise that is delivering on the objectives (or Indigenous Business, Disability Enterprise, etc) When there is a relevant supply market Can simplify monitoring of social outcomes through contract management Indirect Where the buyer engages a mainstream/commercial supplier and requires them to deliver social outcomes through the process. This can include requiring spend with social enterprise. When there is not a relevant supply market Can include a mixed field of social enterprise and commercial Usually more complex social indicator measurement and monitoring
  • 26. 26 Practical Levers in the Procurement Life Cycle Procurement project planning Opportunity analysis Supply market analysis Tendering, assessment & selection Appropriate scope for target suppliers Managing supply arrangements Performance monitoring and review Evaluating & learning Evaluating social outcomes Learning and improving social procurement practice 26 Design go to market approach Evaluate for social impact Establish appropriate engagement relationship
  • 27. 27 Sourcing Strategies No Strategy When to Apply 1 UNBUNDLE SE supply market does not have the capacity to meet scope 2 BUNDLE Size of scope needs to be increased to enable a sustainable social solution (or to maximise social impact) 3 EXPRESSION OF INTEREST Limited knowledge of how social impact could be addresses and/ or desire to encourage innovation 4 SOURCE FROM SE/IB ONLY Known SE supplier/s with current capability and where internal processes allow selective sourcing 5 EVALUATION CRITERIA FOR SOCIAL IMPACT Looking for all participants to demonstrate social value desire to send message to the market on importance of social value to organisation 6 EVALUATION CRITERIA FOR SUBCONTRACTING TO SE/IB The category/ project does not support direct SE purchasing, but Tier 1/ Tier 2 suppliers can be mandated/ encouraged to incorporate SEs in their supply chain 7 INCORPORATE SE/IBS INTO OPEN PANELS Panels are a key sourcing tool used by the business with there is an opportunity to encourage/ enable SE to participate 8 ESTABLISH SE/IBS ONLY PANELS SE capacity and diversity in selected category enables SE only panels and this approach is supported by internal policy 9 SUPPLIER RELATIONSHIP MANAGEMENT Relationships and structured SRM processes enable engagement with existing long-term suppliers to explore social impact opportunities 10 PARTNERSHIPS A specific match of SE supplier capability, a pipeline of work and internal openness to partnering Long-term opportunities for innovation around shared social objectives 27
  • 28. 28 What would be a live opportunity in your context? This can either be a real example or something realistic in the future. What sourcing strategies or levers might work best for that opportunity? The opportunity in your context
  • 29. 29 Building the network of local social enterprise contacts Connecting your region with national opportunities Combining to create connections and value Creating shared value for your council Your unique role in the sector!