Supplier Diversity in a Box provides tools and training to help companies establish effective supplier diversity programs. The program covers supplier diversity basics, identifying baseline spending, finding and engaging diverse suppliers, certification processes, and metrics to measure progress. Participants will receive best practices, policies, procedures and tools over six online training sessions to build their supplier diversity knowledge and capabilities.
13. • Phase E (Execution):
Supplier Diversity Program Development
Project Plan Element List, Cont.
(For Illustration Purposes)
Supplier Diversity Coordinator
Steering Committee and Sponsor resource assignment
Supplier Diversity (SD) core group approval
Core team training (SD Coordinator, Procurement, CM's?) WIIFM
Change management program development
Website modification discussion/action plan
Portal requirements and viewing rights
CM #3: Workforce message
Present spend findings to SC for review and approval
Identiy and join selected national diversity organizations, local programs, conference planning
Validate spend with Category Managers/assing contract and ratings task
CM #4: Workforce soft launch/presentation/venue selection
Category manager program overivew and mini-training
ID supplier diversity target categories, spend goals, and present to SC for approval
CM #5: Supplier diversity training to category managers and super users
Review Category Manager ratings and contract expiry dates
Adjust addressable spend value based on above
CM #6: Supplier diversity program update to workforce and suppliers
CM #7: Communicate program goals/to workforce, HQ and SUPPLIER base
CM #8: Global SD update
Determine Tier 2 applicability
Identify diverse suppliers that are not yet registered for outreach by SD Coordinator
Provide outreach to suppliers that are suspected to be diverse yet haven't registered.
Review addressable spend against category diversity opps
Communicate diverse supplier base with Category Managers
CM #9: Media outreach
Identify qualified diverse suppliers from ratings outcome. Report on portal for search
Engage procurement/Category Managers for next steps for inserting diverse supplier
Document (e.g. PO, RFP, MSA, et al) review of existing supplier diversity language. Make verbiage recommendations/Legal
Create RFX tracking device to store diverse supplier utilization on RFx and other spend events
CM #10: Diverse supplier fair/meeting/networking event
CM #11: Supplier diversity update/workforce/HQ/Media and external go-live
36. Supplier Diversity Statistics
The combined “buying power” of Hispanic, LGBT, African
American, and Asian American-owned businesses is now
about $4.3 trillion dollars ConnXus, SourceOne Innovations 2017
“…Yet, why don’t we feel wealthier?...”
40. Assignment, part I (Due in 5 business days)
• Spend file ALL SPEND—EVERY LAST CENT!
• Spend for (using PO’s, EFT, P-Card—Everything!):
• Goods and Services
• Support (IRS, health care, charities,
organizations, etc.)
• Regular Excel-like type flat file
• Must include:
• Complete customer name
• Address (City, State, Zip)
• Nice to also have:
• EIN (Employer Identification Number)
• Spend Category
• Known diversity status
41. Assignment, part II (Due in 5 business days)
Produce all documentation that refers to and/or supports
Supplier Diversity, including:
• Purchase orders
• RFx documents
• Contracts
• Marketing brochures
• Website references
• Any others…
57. How to Find Diverse Suppliers?
• Search engine capabilities (year 1 part of program)
• Attend out reach events
• Linked In groups
• Sponsor diverse supplier day
• Communicate internally to build adoption
• Professional membership to access their membership
• Advertise (LI, Google, Twitter, FB, Digital, etc.)
59. • Phase E (Execution):
Supplier Diversity Program Development
Project Plan Element List, Cont.
(For Illustration Purposes)
Supplier Diversity Coordinator
Steering Committee and Sponsor resource assignment
Supplier Diversity (SD) core group approval
Core team training (SD Coordinator, Procurement, CM's?) WIIFM
Change management program development
Website modification discussion/action plan
Portal requirements and viewing rights
CM #3: Workforce message
Present spend findings to SC for review and approval
Identiy and join selected national diversity organizations, local programs, conference planning
Validate spend with Category Managers/assing contract and ratings task
CM #4: Workforce soft launch/presentation/venue selection
Category manager program overivew and mini-training
ID supplier diversity target categories, spend goals, and present to SC for approval
CM #5: Supplier diversity training to category managers and super users
Review Category Manager ratings and contract expiry dates
Adjust addressable spend value based on above
CM #6: Supplier diversity program update to workforce and suppliers
CM #7: Communicate program goals/to workforce, HQ and SUPPLIER base
CM #8: Global SD update
Determine Tier 2 applicability
Identify diverse suppliers that are not yet registered for outreach by SD Coordinator
Provide outreach to suppliers that are suspected to be diverse yet haven't registered.
Review addressable spend against category diversity opps
Communicate diverse supplier base with Category Managers
CM #9: Media outreach
Identify qualified diverse suppliers from ratings outcome. Report on portal for search
Engage procurement/Category Managers for next steps for inserting diverse supplier
Document (e.g. PO, RFP, MSA, et al) review of existing supplier diversity language. Make verbiage recommendations/Legal
Create RFX tracking device to store diverse supplier utilization on RFx and other spend events
CM #10: Diverse supplier fair/meeting/networking event
CM #11: Supplier diversity update/workforce/HQ/Media and external go-live
63. Outreach Resources, Cont.
• National Veteran Owned Business Association (NaVOBA)
• Mimi Lohm
420 Rouser Rd #101, Moon, PA 15108
412-269-1663, Ext. 164
mimi.lohm@navoba.com
• National Veteran Business Development Council (NVBDC)
• Keith King
325 E. Crescent Lane, Detroit, MI 48207
888-CERTIFIED
Operations@NVBDC.org
• National Gay and Lesbian Chamber of Commerce (NGLCC)
• Katie Chmielewski
729 15th St. NW, 9th Floor
Washington D.C. 20005
info@NGLCC.org
• Small Business Administration (SBA)
Linda McMahon
Washington, D.C.
800-827-5722
www.sba.gov
70. “Up to 10% of sales come with supplier diversity requirements” *
• Automotive Industry example
* Source: Supplier Diversity Performance Study,
The Hackett Group 2016
“ All leading US automotive companies have strong supplier diversity
commitment and expect suppliers to support their initiatives through
subcontracting (Tier 2) programs.
The following companies have Tier 2 programs that require suppliers to meet
diversity subcontracting targets of 8% of spend or higher:
Ford Motors
General Motors
Fiat Chrysler
Toyota
Twenty-five percent of all Fortune 500 companies have formal supplier diversity
programs. Tier 2 programs are also being considered in the Federal government
contracting agencies. (Source: MMSDC and Supplier.IO)
72. Certification Requirements are Rigorous
There is a rigorous, multi-step process for certification. While
each certifying agency does certification differently, the
attached is a good example of the typical certification
process below. Please click below, and open attachment.
79. Supplier Diversity Metrics
Number of sourcing events launched
Number of diverse suppliers invited
Number of diverse supplier participating
Number of diverse business awards
Reasons for RFP no business award
Spend by diverse category
Tier I compliance/Tier II
External awards/recognition