Fujitsu Makes Procurement Strategic To Reconciliation With Indigenous Peoples

Breaking down systemic barriers and empowering First Nations peoples and their communities is an ongoing journey. The partnership between Fujitsu and Indigenous Defence and Infrastructure Consortium (iDiC) in Australia is an exemplar of what’s achievable in the First Nations entrepreneurship and business space.

Fujitsu’s strategic First Nations partner, iDiC was one of the first organisations to join Fujitsu’s Innovate Reconciliation Action Plan (RAP), which partners with Aboriginal and Torres Strait Islander communities and businesses in Australia to create a more inclusive and diverse supply chain. To date, Fujitsu’s spend with First Nations suppliers has increased to over $4.5 million, and the company wants to double their yearly spend in the next three years.

Building cultural bridges between a company like Fujitsu and Indigenous-owned suppliers is founded on mutual trust that sparks economic growth from procurement strategies.

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“We’ve worked hand-in-hand with Fujitsu to support them on their reconciliation journey, making it easier for people involved with purchasing decisions at their organisation to engage with Indigenous-owned businesses,” said George Mifsud, director and co-founder at iDiC. “Building financial and economic independence for First Nations-owned businesses helps create jobs for Indigenous Australians, providing sustainable employment for self-sufficiency that bolsters the entire social fabric of the country.”

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A force-multiplier in the business of doing good

According to a study from Supply Nation, every dollar of revenue made by an Indigenous-owned business creates $4.41 of positive economic and social value. Mifsud is well-aware of this as his organisation manages the consortium of over 140 Indigenous-owned suppliers in Australia selling a wide range of offerings that include professional, facility, and ICT services.

“Indigenous businesses are 100 times more likely to employ Indigenous people than non-Indigenous businesses,” said Mifsud. “The more work that we funnel through Indigenous businesses throughout the supply chain, the more jobs we’ll provide to Indigenous people and their communities.”

Meaningful action on reconciliation plans

Mifsud said that iDiC helped Fujitsu develop the company’s First Nations procurement policy and procedures and provides them with strategic advice and practical support. Education includes town halls and lunch and learn sessions where Fujitsu employees gain a better understanding of the company’s commitment to its reconciliation action plan, and the value of hiring First Nations-owned suppliers.

“We help educate employees on how to create a culturally-safe environment for Indigenous businesses and people who want to work in Fujitsu facilities,” he said. “Education demonstrates the company’s commitment to increasing Indigenous participation in the organisation. It creates a cultural connection where Indigenous people feel safe to work with a non-Indigenous organisation knowing that they won’t be discriminated against.”

Procurement technology automates social equity

It can be daunting for First Nations-owned businesses to navigate the supply chain requirements of large companies and prequalify as an approved supplier. With this partnership, both Fujitsu and iDiC are charting a path to greater opportunities.

“Fujitsu’s RAP is at the heart of our corporate framework to create social change and economic opportunities as we work towards building trust and better relationships with First Nations-owned suppliers and extend that to other minority-owned businesses nationwide,” said Payam Rahimi, APAC head of procurement at Fujitsu. “Procurement plays a fundamental role in developing long-term partnerships with supplier communities like iDiC, which enables us to fulfill our vision to harness the power of technology for the benefit of society. There’s no reason why we can’t scale this platform across the APAC region.”

By centralising procurement activities on SAP Ariba, Fujitsu has complete visibility into supplier data including spend allocations and contract status. Digitising procurement has reduced new vendor onboarding time by over 65%, with other major benefits being reporting and supplier risk mitigation.

“With integrated procurement data, we can track and document compliance with corporate commitments and external requirements,” said Rahimi. “For example, we can better manage suppliers based on their degree of risk, automatically triggering alerts that identify alternative sources to prevent disruptions.”

Economic growth from a foundation of trust

Building cultural bridges between a company like Fujitsu and First Nations-owned suppliers is founded on mutual trust that sparks economic growth. After securing long-term contracts with Fujitsu, some suppliers have grown from a handful of workers to 30 or 40 employees.

“We’re bringing these suppliers new opportunities to deliver services, which helps them reinvest back into their business and expand their capabilities,” said Mifsud. “If you’re a young Aboriginal person, you likely haven’t spent a significant amount of time in the city or working in corporate life. When you see that an organisation has a reconciliation action plan, Indigenous employees in leadership roles, and policies to bring First Nations-owned businesses into their supply chain, you’re going to say, hey I’m going to choose to work with that company.”

First Nation innovation unleashed

Beyond immediate employment, iDiC also offers Indigenous-owned businesses the opportunity to innovate, which First Nations people have always been leaders in.

“We appreciate the trust that these companies have placed in us and our relationship with Fujitsu,” said Mifsud. “We ask them to continue being open-minded in identifying new entrepreneurial opportunities through partnerships with organisations like Fujitsu.”