Statistics

Characteristics that shape member's supplier diversity initiatives

  • 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

  • Global sourcing