Guide 10:
Uplifting sector or supplier capability

What this economic benefit means

Uplifting sector or supplier capability means strengthening the capability, resilience, or performance of suppliers or sectors that are strategically important to New Zealand

This benefit takes a broader view than workforce training and development, a separate benefit.

Instead, this kind of capability relates to improving an organisation or sector’s:

• processes or systems
• technology
• commercial maturity
• connectedness and ability to share knowledge.

The focus is on long term market health, rather than individual supplier advantage.

Wider impacts of uplifting sector or supplier capability

When procurement uplifts supplier or sector capability:

• supply markets become more resilient and capable
• innovation and quality improve
• risks related to concentration or fragility are reduced.

Planning for uplifting sector or supplier capability

This guidance applies if uplifting sector or supplier capability has been identified as a benefit at the planning stage. When planning, consider:

• Is this supply market strategically important to New Zealand?
• Are there known capability gaps or vulnerabilities among the supply market or within the sector, for example in their processes, technology, or commercial maturity?
• Would investment in capability deliver long term value?
• Can barriers to supplier participation or sector growth be addressed?

The general guidance on planning for economic benefits applies alongside these specific considerations.

Plan to include economic benefits in the procurement

Example RFx questions for uplifting sector or supplier capability

Use and adapt these examples in your tender documentation to confirm whether respondents can successfully deliver this benefit.

• Describe the initiatives you would take to build supplier or sector capability (for example, mentoring and knowledge sharing).
• Explain how these initiatives will contribute to market resilience or performance.
• Provide examples of similar capability building activity that you’ve done in the past.

Remember to keep requested information proportional and clear. The general guidance on approaching the market for economic benefits still applies.

Approach the market with economic benefits in mind

Indicators to measure uplifting sector or supplier capability

You could use the following indicators to measure the success of this benefit. If they don’t directly fit your organisation’s context, adapt them as needed.

Keep performance measurement proportional to the procurement.

You would want to measure which capability improvements were achieved against specified milestones. Measurable improvements could be:

• Increasing domestic supplier participation in a key sector.
• Growing the size of a supplier through the contract.
• Mentoring or upskilling a supplier.
• Growing organisational capability (for example, industry experience or certifications).