Striving towards Reconciliation
BUILDING A POSITIVE WORKFORCE THROUGH INDIGENOUS ENTERPRISE
The Challenge
Of the 2.1 million businesses in Australia, only ~0.6-0.8% are owned by Indigenous people, accounting for approximately 14,000 businesses, concentrated mainly in rural and remote communities.
Sodexo Australia’s (Sodexo) investment in Indigenous businesses is a firm commitment as part of its Stretch Reconciliation Action Plan (RAP) and Jatu Clothing (Jatu) is one of Sodexo’s Indigenous business partners.
In mid-2021, Jatu was looking for opportunities to work with a large-scale business partner to help broaden its service offerings through investment and business mentorship.
Sodexo responded to this call, knowing that partnerships and contracts with Indigenous suppliers can provide a foundation for the growth of their business across Australia. Sodexo also recognises the value that can be leveraged in creating opportunities for these businesses, the impact it has on their communities, and in creating generational wealth and economic independence.
A Collaborative Solution
Initially engaged in fulfilling Sodexo’s Personal Protective Equipment (PPE) needs for a major contract in the Pilbara region, Sodexo’s Indigenous Affairs and Supply Management teams have worked closely with Jatu to understand their growth vision to increase their business capabilities and capacity.
In turn, Jatu has become a vital part of Sodexo’s supply chain, supplying uniforms to Sodexo’s regionally placed workforce, a particular challenge during the COVID-19 pandemic when many suppliers faced challenges in meeting standard delivery timelines.
Results Achieved Together
The opportunity for Jatu to increase their scope and offer third-party logistical services, has enabled the business to expand their distribution portfolio nationally. This business has subsequently moved into a larger operating facility and employed two additional team members. Jatu’s team is proudly represented by Indigenous-identifying team members who make up more than 50% of the workforce.
One project of note that Jatu and Sodexo have engaged in is the rollout of co-branded Hi-Vis Work Shirts for staff on RTIO sites in Western Australia. This initiative has seen more than 4,500 shirts delivered to Rio Tinto sites since Sodexo engaged Jatu in this proposal. Jatu have continuously supplied Bisley manufactured shirts, co- branded with embroidered Sodexo and RTIO logos, to staff on these sites since this project commenced in 2023.
In FY24, Sodexo have recorded a total spend of more than $2.3 million with Jatu, which equates to more than a doubling of the total spend of $1.1m from FY21. Sodexo’s contract spend with Jatu represents more than $2.5 million in value annually, with a total spend with Jatu of more than $10 million since 2019.
As Sodexo has scaled its investment with Jatu, the business has established on-site embroidery services, which has enabled even more local employment opportunities and has created economies of scale for delivery of PPE and uniforms to Sodexo sites across Australia.
Sodexo is proud of our longstanding relationship with Jatu and the outcomes which have been achieved together.
“Jatu Clothing & PPE has strategically grown incrementally since 2020, very much so with the support of the Sodexo National Workwear Supply Contract.
During this period, we have doubled our system and process capabilities and warehouse size, whilst also diversifying our client base. As result of this supported incremental growth, Jatu now offers onsite embroidery which has reduced our supply times to customers significantly.
Sodexo has walked with us all the way supporting and assisting us with this sustainable growth strategy and in doing so has demonstrated a very positive commitment to Aboriginal businesses. We firmly believe the supported strategic incremental growth pathway forward has been the key to Jatu’s success and is a blueprint for other emerging businesses.
Jatu is most grateful to Sodexo for demonstrating its commitment to supporting Aboriginal business and providing realistic and tangible opportunities to grow our business.”
As corporate citizens, we are responsible for making supply chain choices that incubate and ensure longevity for businesses like Jatu. By forging long-term partnerships with Indigenous businesses, we foster economic independence, job creation and support within the unique communities where our Indigenous business partners operate.
