Tag Archives: minority owned business

Supplier Diversity? I Don’t Have Time For That!

“No one wants to change suppliers…” but embracing Supplier Diversity is getting easier than ever before, and there’s a whole host of reasons it’s good for your business! 

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Supplier diversity programs are a hot topic.

We know we’re supposed to have them…

And we’re told that they’re a great thing both for our organisations and the broader communities in which we work and live.

But what are the actual facts when it comes to embracing a supplier diversity program? Do they really add innovation and value to your business? Is finding a minority owned supplier more trouble than it’s worth?

What is supplier diversity?

Supplier diversity is a business strategy that ensures procurement professionals source their goods and services from a diverse range of suppliers; whether they’re minority or women owned businesses, not-for-profits or social enterprises.

How suppliers gain classification as a diverse business differs across the globe but both a formal process of classification and legislation supporting these businesses is extremely valuable to both buyers and suppliers.

United States

The United States is often regarded as being at the forefront of advancing supplier diversity.

The National Minority Supplier Development Council (NMSDC), with a network of 1,750 corporate members, advances business opportunities for certified minority business enterprises and connects them to corporate members.

Businesses in the US that are least 51 per cent  owned by citizens who are Asian, Black, Hispanic and Native American can be  Minority Business Enterprise (MBE) certified.  According to the Minority Business Development Agency, there are 8 million minority businesses in the US that account for nearly $1.4 trillion in revenues.

South Africa

The Broad-Based Black Economic Empowerment (B-BBEE) Act passed in 2003 with the fundamental objective  to advance economic transformation and enhance the economic participation of black people in the South African economy.

UK

The UK has been slower to implement clear policy in this area but is an increasing number of organisations working in this space .

MSDUK, for example, is a non-profit membership organisation driving inclusive procurement. We promote the ethos of diversity and inclusion in public and private sector supply chains by identifying and introducing innovative and entrepreneurial ethnic minority owned businesses (EMBs).

CIPS supports the definition of a diverse supplier as one that is “51 per cent owned, controlled or operated by one or more individuals who are members of an ethnic minority group, are disabled, or are women and who are ‘economically disadvantaged’, in that their personal net worth is less than $750,000”

Australia

Supply Nation connects Australia business with Indigenous businesses and is endorsed by the Australian Government as the leading directory of Indigenous businesses for their procurement teams to fulfil their targets under the new Indigenous Procurement Policy.

We interviewed two people who know a thing or two about the benefits;  Rod Robinson, Founder & CEO, ConnXus, Inc. and Lamont Robinson,  Vice President, Supplier Diversity -Nielsen.

Why should our organisations support supplier diversity?

“Supplier diversity has evolved throughout the years since its original inception through Executive Order 11458 in 1969, establishing the Office of the Minority Business Enterprise,” begins Lamont.

“Since that inception, supplier diversity has grown into a business imperative.”

He explains that organisations are establishing these programs to meet needs in six areas:

1. Clients

“Clients are increasingly asking their suppliers to help them with their diversity efforts. It is important to understand the reality that consumers use their purchasing power to support businesses that support companies with owners that look like them.”

2. Competition

“Having a successful supplier diversity program is often a differentiator for retention/recruitment of clients.”

3. Compliance

“Since some clients have federal contracts, they turn to their suppliers to assist with their diversity goals”

4. Communities

“Since diverse businesses typically employ more individuals in underserved communities than their larger counterparts, increased sales for those businesses should lead to more jobs in the community and more paid insurance for those employees.”

“A successful supplier diversity program could positively impact the recruitment and retention of diverse talent.”

5. Customisation innovation

“Diverse suppliers are more innovative and flexible in providing [a] solution.”

“Smaller, more nimble companies typically have greater customer service than their larger counterparts. The customer service is also more personable than with what is provided by large companies.”

6. Costs

“A diverse supplier base creates more competition, which leads to aggressive pricing.”

Rod Robinson argues that “corporate supplier diversity programs yield proven, measurable results in improved innovation, quality and value.

“Overall, it makes good business sense for corporations to do business with diverse suppliers to build a more sustainable supply chain.

“The U.S. Census Bureau reports that minority-owned businesses continue to grow significantly faster than non-minority-owned businesses. From 2007-2012, the number of minority-owned firms increased 29 per cent.”

How can supplier diversity add value to your organisation?

“If a procurement policy requires at least two diverse bidders for every three bidders, those new suppliers will not only have a chance to offer competitive pricing, but they can expose the organisation to new avenues of revenue growth, including access to new markets,” says Rod.

“Furthermore, these suppliers often align with corporate sustainability efforts (energy conservation, reduced paper consumption).”

Lamont believes that “diverse suppliers are typically created by individuals or groups looking to disrupt the marketplace.”

“These individuals seek innovative ways to create a service or product that more effectively meets the needs of clients. Working with smaller, nimble, and more innovative diverse suppliers allows supplier diversity to introduce innovation to the supply chains of their respective organisations.”

Supplier diversity programs are too time consuming

“No one wants to change suppliers,” Lamont admits.

“We all would like to maintain status quo when partnering with the companies that supply us products and services we consistently use and consume.

“However, there are various organisations and tools created to speed up the time needed to source from diverse businesses.

“Best practices are identified when organisations join diversity advocates such as the National Minority Supplier Development Council, the Women’s Business Enterprise National Council, the National Gay & Lesbian Chamber of Commerce and other similar organisations. Networking with peers from organisations that are members of the aforementioned advocates provides a platform to source for diverse businesses to meet an organisation’s needs.”

Rod agrees with this point of view, arguing that “vetting diverse suppliers requires the same process and time as vetting non-diverse suppliers, but procuring with purpose and intention yields a more sustainable business model, supply chain and economy.”

“Partnering with a technology leader such as ConnXus offers procurement professionals increased visibility and ease-of-use for what might seem to be a difficult or time-consuming task. Choosing the right technology partner can enable procurement professionals to have a unified tool to manage diverse sourcing, supplier diversity, supplier risk, economic impact and more.”

Procure with Purpose – Join the movement

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Enrol here to join the Procure with Purpose group and gain instant access to our exclusive online events.

Can You #FeeltheLove This Valentine’s Day…?

As a procurement professional, cutting costs is the very least you can do! Procure with purpose and start driving change world-wide…

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Our webinar,  Feel The Love takes place at 3pm GMT /10am EST  on 14th February 2018. Register your attendance for FREE here. 

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labor, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious present #FeeltheLove – the first Procure with Purpose webinar.

What can I expect from the Feel the Love webinar?

We’ll be discussing…

  • What is Procuring with Purpose?
  • Why should professionals care about purpose-led procurement?
  • What are the small things that you can do immediately to drive big outcomes?
  • How do you measure and report social impact to the CFO?
  • The procurement teams who are already getting it right!
  • How can businesses ensure that economic growth is always accompanied by a respect for human rights?
  • Our vision for using the power of social media to drive purpose-led procurement around the world

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

Pat McCarthy – SVP and GM, SAP Ariba North America

As head of SAP Ariba’s North American business, Pat McCarthy is responsible for driving sales performance, the go-to-market strategy and overall operations of the field organization across the U.S. and Canada.Since joining SAP in 2005, he has held a number of executive roles successfully leading Net New, Mobility, and Database &Technology teams throughout the U.S.

Immediately prior to his current post, Pat served as chief operating officer for the Midwest region of the U.S., overseeing the consistent execution of sales strategies, operations and the region’s go-to-market initiatives.

Pat graduated from Elmhurst College, sits on the board of Chicago Tech Academy, a charter non-profit for Chicago high school students, and supports global charitable endeavours through Kiva.

Nicole Verkindt – Founder and CEO, The OMX

Nicole Verkindt is the Founder & CEO of Canadian technology company, OMX (theomx.com).

She is passionate about the role that data and networks can play in connecting diverse supply chains and analysing and improving the exact impacts from procurements.

The platform is the only one in the world that manages obligations companies have to invest in local businesses. OMX is an online marketplace to help companies diversify their procurement by providing opportunities through the platform that smartly matches to suppliers.

Nicole is a commentator on CBC and columnist for Vanguard magazine focusing on technology and business news and was a “Dragon” on Next Gen Dragon’s Den, which is dedicated to early stage technology businesses. She was named Canada’s national woman entrepreneur of the year in 2017.

Peter Holbrook – CEO, Social Enterprise UK 

Peter Holbrook became CEO of Social Enterprise UK in January 2010.

Social Enterprise UK is the national trade body for social enterprise and represents a wide range of social enterprises, regional and national support networks and other related organisations. SEUK works to promote social enterprise as a model for changing both business and society.

Peter has established, developed and supported hundreds of diverse social enterprises over his career. He has advised government taskforces in the UK and overseas and chaired the Social Enterprise World Forum, the global network of social businesses until 2015.

Peter has previously worked for Oxfam, Greenpeace and various disability charities. He has experience of working in overseas development, community development and public health. Peter started his career with Marks and Spencer PLC and also spent several years with Body Shop International

He was appointed a CBE in 2015.

How do I register for the webinar?

Joining the Procure With Purpose movement and registering for our webinar couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar will take place at 3pm GMT /10am EST on14th February 2018.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’d like to ask one of our speakers a question please submit it  via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Commit to Procure with Purpose

Procure with Purpose is a movement. A coalition of committed, energised procurement professionals who want to deliver value beyond cost savings and efficiencies.

Through the Procure with Purpose campaign, we’ll shine a light on the biggest issues –from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability–and on you –our members -who are already driving exponential change.

How do I get involved ?

To stake your place, simply sign up here. It’s FREE to join –you just need to be passionate and ready to lead with purpose! When you sign up for the #FeeltheLove webinar, you’ll be automatically registered for the Procure with Purpose group on Procurious and all of our related, online events.

Our webinar,  Feel The Love takes place at 3pm GMT / 10am EST on 14th February 2018. Register your attendance for FREE here.