- The Indigenous Purchasing Program (IPP) of the Commonwealth of Australia aims to source 3% or more of its goods and services from Indigenous-owned and run enterprises by 2020, the Guardian reported.
- Businesses must be 51% indigenous-owned or controlled to qualify for an IPP contract. In total, the commonwealth of Australia spends $57 billion every year on procurement.
- The IPP serves as a window to urge government departments through the door in order to pursue Indigenous owned and run businesses, many of which operate a basis too small to earn attention as viable suppliers.
The IPP program not only serves to add native inclusively to the sourcing table, but also ensures a wide variety of suppliers supporting government need.
Risk is always an issue when only limited sourcing is available. Weather extremes, employment issues, and even local government conflicts in rural areas can affect a company's ability to consistently provide sourcing materials. However, when sourcing diversity is sought, especially in a large geographic range, the risk is mitigated.
A further, and perhaps more valuable benefit is the ability of business to provide a resource for social cohesion. Purchasing and supplying requires a steady degree of interaction and communication, which often form a catalyst for understanding through shared experience. A particularly good relationship between suppliers and distributors contributes to reliable partnerships, one of the chief aims of the IPP program.