How purchasing through GPOs can support Indigenous businesses

Sept. 30 marks Canada’s National Day for Truth and Reconciliation, but the recognition of Indigenous rights, respect, cooperation, and partnership is a year-round effort.

This ongoing commitment is particularly evident in public procurement, where officials and organizations, like Kinetic GPO, are working to foster opportunities with Indigenous communities.

One of the most visible efforts is the federal mandate to award at least five per cent of the total value of all federal contracts to Indigenous businesses with the goal of helping to improve the socio-economic conditions of Indigenous communities. On the municipal level, some cities have implemented policies similarly aiming to increase procurement with Indigenous businesses.

Truth and Reconciliation

Although Truth and Reconciliation is a national priority, the movement is especially pronounced in regions with larger Indigenous populations, such as Ontario, which has the highest Indigenous population among the provinces, and Western Canada, where over half of Canada’s First Nations people reside.

Nicole Wieser, business development manager at Kinetic GPO, in Calgary, notes that efforts to recognize and honor Indigenous populations are widely visible throughout her region. From signage at airports to community parks and public events, the commitment to Indigenous communities is clear.

Wieser has also observed growing interest in Indigenous procurement, with Kinetic GPO’s members showing increased engagement and partners working more closely with Indigenous businesses.

“There’s a misconception that GPOs (group purchasing organizations) can’t contribute to Indigenous procurement,” Wieser said. “But we are actively reinforcing the importance of this initiative and finding practical solutions to make a difference.”

Jean-Marc Nadeau, CEO of SUMA, in Regina, highlights the significant interest in Indigenous procurement in Saskatchewan, which is home to 8.3 per cent of Canada’s Indigenous population.

“Several communities here have policies in place that assign additional points to Indigenous suppliers when evaluating RFPs,” Nadeau said, noting that GPOs like Kinetic GPO are working to build relationships with Indigenous communities to support economic development.

“The Truth and Reconciliation Commission calls for action to right the wrongs of the past and promote Indigenous self-determination,” he said. “A good place to start is opening the doors to Indigenous businesses and giving them opportunities to bid for contracts.”

Sharing Success Stories

Opportunities to work with Indigenous businesses are growing in the world of procurement.

As of 2024, CanadianSME Business Magazine reported that there are more than 75,000 Indigenous-owned businesses and entrepreneurs in Canada. Procurement success stories aren’t hard to find.

Wieser points to digital business services and printing solutions company Ricoh as an example of a Kinetic GPO supplier that partners with Indigenous businesses and has achieved certification with the Canadian Council for Indigenous Business (CCIB).

In addition to supporting Indigenous libraries and education, Ricoh has created a five-year national Indigenous scholarship program through Indspire, and it is working to increase employment opportunities for Indigenous candidates.

As for businesses, Ricoh partners with two major Indigenous-owned dealers in Canada, who work as subcontractors to install Ricoh equipment in their regions. Through its supply chain, the company also partners with Indigenous-owned airline Canadian North and is always looking for additional partners.

CDW, a Kinetic GPO supplier, similarly engages with Indigenous partners in its information technology solutions business. In addition to collaborating with the non-profit organization Pinnguaq to assemble and donate technology kits for Indigenous communities, it partners on the business side with Indigenous-owned technology solutions providers. CDW is also a member of the Canadian Council for Indigenous Business (CCIB) and the Canadian Aboriginal and Minority Supplier Council (CAMSC), which assists in identifying and validating certification of Indigenous-owned businesses.

“We’re actively looking to grow our relationships with Indigenous partners and inviting conversations with customers about our efforts in this area,” says Jennifer Schrock, director of product and partner management, operations, and strategic initiatives for CDW in Toronto. Schrock noted that CDW can provide tier two Indigenous spend reports that help organizations track their progress.

Another example of a Kinetic GPO supplier with successful Indigenous business partnerships is Grand & Toy, a national supplier of office supplies, furniture, and technology, who collaborates with Kebaonish, an Indigenous-led company, to offer tea and coffee products.

Even multinational companies like Amazon Business, a Kinetic GPO partner, have embraced Indigenous initiatives, allowing customers to filter searches for keywords such as sustainability and Indigenous participation. This demonstrates a broadening understanding of how large corporations can contribute to Indigenous procurement efforts.

Earning Trust, Making Connections

While public procurement and GPOs have made significant strides in building relationships with Indigenous communities, challenges remain. One of the biggest hurdles is establishing trust and building meaningful connections.

“Many Indigenous communities have a long history of distrust toward major corporations, so it can take time and persistence to earn the right to collaborate,” said Scott Leonard, vice president of alliance, and chair of Ricoh Canada’s Indigenous Relations Committee. “Establishing trust often requires multiple attempts and sustained effort to prove that the commitment is genuine.”

He was quick to add that building personal, in-person relationships is also critical.

“I have several meetings planned out west, where I will spend time in communities and engage face-to-face,” Leonard said. “It’s vital to demonstrate that you are genuine in your interest to create real, successful partnerships with these communities.”

Sandra Lisi, national director business development for Kinetic GPO, and former director of purchasing client services for the City of Toronto, agrees, pointing out that many Indigenous businesses prefer traditional, in-person meetings over electronic bidding processes.

“In Toronto, for instance, some Indigenous businesses prefer the old-fashioned way of submitting paper bids,” Lisi said. “We are working to increase trust in the digital process and highlight the successes of others to encourage more Indigenous businesses to participate in the bidding process with Kinetic GPO.”

Identifying Unique Spaces

While there are many Indigenous-owned businesses in Canada, Schrock said identifying ones that specialize in unique spaces like information technology services can be challenging.

“As we continue to grow, we’d like to work with more Indigenous businesses from across the country, particularly in Western Canada,” she said. “Belonging to the CCIB and CAMSC helps in terms of accessing their database of Indigenous-owned businesses.”

Lisi says that as more Indigenous members and partners come on board, they will hopefully spread the word to other businesses about the benefits of working with GPOs.

“In Northern Ontario, we’re talking with a council that has 300 members who own Indigenous businesses and are interested in learning more about the process,” Lisi said. “We’re doing the steps to try to increase their presence in our portfolios and among our membership.”

In Western Canada, Wieser is similarly engaged with First Nation authorities and agencies to find more ways to work together both from a member and supplier perspective.

“Everyone wants to increase Indigenous procurement, but not everyone knows how to do it. Working with a GPO like Kinetic GPO is a clear starting point,” Wieser said while reflecting on the broader learning process involved. “We are all learning every day, and at Kinetic GPO, we’re proud to say we’re bringing on more Indigenous members and suppliers. We’re actively moving the needle on this important issue.”  MW

Chris Penny is the CEO of Kinetic GPO. Penny has spent two decades helping public-sector entities and suppliers manage the often-complicated world of public sector purchasing.