Characteristics that shape member’s
supplier diversity initiatives
BDR Strategies Include:
Shifting the success measure for supplier diversity from spend to economic impact;
Broadening the supplier diversity view to include other diverse groups;
Including global reach for supplier diversity to engage multi regional opportunities;
Establishing a business process to connect willing acquirers with viable business prospects;
Making BDR “the gold standard” for supplier diversity worldwide; and
Focusing resources on a few top programs to build capacity and capability in diverse suppliers.
Close integration with sourcing organization
Partnership with Advocacy Groups
Annual objectives coupled with quarterly reports
Mentoring
Supplier information sessions
Increasing support of Tier 1 suppliers in Tier 2 purchasing activities through focused relationship-building activities
Expanding reach of performance metrics to increase accountability among team members
Opportunity exchange, a valuable forum delivering business opportunities to MBEs
Introduction of Supplier Diversity Champions throughout the organization
The employment of a consultant in the early stages of program development
Executive leadership support and involvement – the CEO is very supportive and vocal about the program
The employment of a 3rd party I/T company to accurately identify our true minority spend
Internal awareness programs
Company wide implementation of NMSDC Supplier Diversity Best Practices
Enhanced accountability tools/metrics
In Tech Services, which is our largest area of spend, all Tier 1 contracts have a 25% diverse supplier utilization clause. Even small business suppliers which are generally exempt, have a 15% diverse supplier utilization clause.
Requiring all large prime suppliers to become national members of NMSDC and WBENC to ensure the Tier 1 suppliers we do business with foster the same beliefs as we do
Utilization of corporate policy to drive supplier diversity
Establishment of supplier diversity within global purchasing
Appropriate allocation of headcount and funding for operating purposes
Accountability for achieving year over year supplier diversity objectives at all levels of the purchasing organization
Frequent review of supplier diversity performance against objectives
Canadian Aboriginal Minority Supplier Council member
Minority Entrepreneur Initiative
Senior management leadership involvement
Challenges Facing the Supplier Diversity Program:
Government adoption of multi-tier reporting process
Increased emphasis on service disabled veterans
Industry (automotive) conditions placing financial stress on supply chain
Identifying and/or developing M/WBEs in non traditional areas
Identifying smaller opportunities to introduce suppliers that are not yet at capacity for larger projects
Identification of minority suppliers in the electrical commodity
Identification of WBEs with automotive capabilities that match potential opportunities
Supplier consolidation related to company merger and strategic sourcing reduces supplier base
Prime supplier reliance on contract manufacturing and other forms of outsourcing impacts second tier
Internal Education
Pressures to consolidate suppliers to cut costs in sluggish economy
Buyer’s challenge to grow their direct import spend
Large number of supplier inquiries versus our capacity to handle them adequately internally
Customer enforcement of their second tier requirements
Developing US suppliers quick enough to participate in our low cost country sourcing strategies
Consolidation of the supply chain and impacts of telecom and I/T manufacturers outsourcing and off shoring
Intense competitive pressures to continually lower costs is most challenging for smaller companies
Expansion of Second Tier program
Expansion of Supplier Diversity Program in the non-US Region
Sourcing requirements and decision making authority moving outside the US
Company rightsizing impacting resources available for supplier diversity operation
Globalization, consolidation, and rationalization of supply chain reducing opportunities for MBEs that lack scale, are in commodities with high labor content, and have not developed an offshore presence
No visible succession plans or exit strategies for founders of first generation MBE suppliers
Enhancing MBE stature in the value chain
Connecting opportunities for traditional MBEs with opportunities outside of the industry group
