New procurement policy supports local māori economy

Acknowledging the positive influence Parininihi ki Waitotara (PKW) can have on Māori economic success is a central pillar of a new procurement and purchasing strategy adopted by the organisation.

“We know that by supporting Taranaki Māori businesses and suppliers we are helping to create a vibrant and financially successful economy for our people,” says Joe Hanita, PKW General Manager Finance and Investments. “It has always been an informal metric over the last few years but now we have elevated it to become a formal objective.”

The new procurement strategy, which has a principal objective to reflect a culture and discipline of ‘value for money’ in support of longterm financial return aspirations and collective Māori economic success, was developed in the wake of a procurement and purchasing review commissioned by the PKW Board.

“The aim of the review, which was carried out by PricewaterhouseCoopers (PwC) against a best practice model, was to enable us to fully understand the strategic implications of our procurement approach and our purchasing processes,” says Joe.

Above image: Joe Hanita

“It also enabled us to identify what we needed to do to ensure our new strategy was in full alignment with our four values.”

The first of these, Manaakitanga, ensures that purchasing decisions reflect that goods and services are sustainable and fit for purpose. This approach aims to ensure effective management and therefore minimise waste, unnecessary consumption or in-proportionate spend to revenue growth. It will also mean that environmental and/or negative societal impacts are a consideration.

Upholding Kaitiakitanga will call for excellence in following procurement best practice while Whakapono will be reflected by establishing formal arrangements with suppliers for a high proportion of PKW’s expenditure.