Supplier Diversity Management
Career Partners International - Austin has extensive experience and expertise in developing/managing proactive business programs which encourage the use of minority-owned, women- owned, veteran- owned, LGBT-owned, service- disabled veteran owned, historically underutilized business, and Small Business Administration (SBA)-defined small business concerns as suppliers.
Our approach to helping companies develop/manage their Supplier Diversity programs recognizes that sourcing products and services from previously under-utilized suppliers helps to sustain and progressively transform a company's supply chain, thus quantitatively reflecting the demographics of the community in which it operates by recording transactions with diverse suppliers.
Why is this move to engage with diverse suppliers important? According to Dun & Bradstreet, minority-owned businesses contribute jobs for 2.2 million people, women-owned businesses contribute 7.9 million jobs, and LGBT-owned businesses contribute 2.4 million jobs. Diverse and women-owned business enterprises are among the fastest-growing segments of the U.S. economy.
Executive Certified Master Compliance Administrator (ECMCA)
Master Compliance Administrator (MCA)
Certified Compliance Administrator (CCA)
All certifications obtained from American Contract Compliance Association (ACCA), a national certification program for Supplier Diversity professionals.
Procurement departments have thrown around the term “supplier diversity” for years now. While the Federal Government mandates supplier diversity reporting on contracting, other government procurement agencies and private companies are also coming to realize the significant benefits of supplier diversity. This beneficial shift in contracting is often faced with resistance from internal stakeholders. With that type of resistance, here are some key benefits to strongly consider augmenting or implementing supplier diversity in your company:
Supplier Diversity and The Bottom Line
Simply put, supplier diversity aims to create an inclusive supply chain compromised of diverse vendors, such as minority-, women-, and veteran-owned businesses. A common misconception about creating a Supplier Diversity Program (SDM) is that it is expensive. The reality? A more diverse supply chain not only benefits those small businesses, it also makes good financial sense for the company implementing the program.
Part of the reason why supplier diversity has such a positive influence on a company’s bottom line is that implementing a program drives competition among incumbent and new vendors. When companies take stock of their supply base, suddenly, incumbent vendors find their pricing and contractual agreements thrust into the spotlight and under greater scrutiny. This creates more opportunities for diverse, often smaller, vendors that otherwise would not have been considered. This results in leveling the playing field among suppliers and opening the door for greater cost savings for the company.
Another positive aspect of an effective Supplier Diversity Program is the potential to spur innovation. Diverse vendors are often smaller and more agile than their larger counterparts, allowing them to move and maneuver with greater flexibility and ease. As a result, this allows companies to benefit from greater innovative leaps that come with smaller, diverse companies and has the potential to improve their products and services.
The Bottom Line and Corporate Reputation
Now, more than ever, consumers are holding companies to higher standards, making it increasingly challenging for them to partake in poor business practices. Stocks plummet and bad press abounds when poor business practices are unearthed. Companies are increasingly moving toward diversification not only for its financial benefits but for its ability to support a positive image of the company as well. Enhancing and implementing supplier diversity programs can be a positive reflection of the demographics in the community it operates. A company committed to developing a diverse supply chain displays its commitment to doing business with and supporting the economic growth of all communities.
The CPI – Austin Approach
Our approach to Supplier Diversity Management is focused on creating sustainable and measurable practices that boost your company’s revenue opportunities while attaining the benefits previously mentioned. Some of the valuable consulting services include:
#1: Define or augment your program and create policy
#2: Secure commitment from the top down
#3: Strategies to ensure program accountability from all
#4: Develop and identify opportunities for greater supplier diversity on contracts
#5: Establish or enhance relations with diverse suppliers and associations to leverage participation in contracting
#6: Integrate supplier diversity in your agency/organization
#7: Implement a continuous improvement plan and process
Transforming the Vision to Reality
Our Supplier Diversity Management (SDM) Team has extensive expertise in developing and managing SDM programs for numerous companies and government agencies. Our team has recognized certifications in SDM from the American Contract Compliance Association, that includes Certified Compliance Administrator (CCA), Master Compliance Administrator (MCA) and Executive Certified Master Compliance Administrator (ECMCA).
The road to starting a Supplier Diversity Management Program need not be an uphill one. The first step is realizing the significant benefits of implementing such a program and clearly presenting those benefits to achieve internal stakeholders’ acceptance, from the top down. Please contact us to ensure you get the maximum benefits to augment or implement your successful Supplier Diversity Management Program.