Supplier
Diversity best practices
Many companies have
Supplier Diversity programs. These programs, also referred to as minority
owned business enterprise or MBE programs are intended to help large
corporations do business with small companies owned by African, Hispanic, and
Asian Americans. The effectiveness of Supplier Diversity programs varies
widely, depending on whether the company wants to use theirs as a strategic
means to lower their bottom line costs and improve profitability, or only as a
public relations vehicle.
Here are
some of the characteristics of the best practices for Supplier
Diversity programs:
- Clearly
documented commitment from the company's CEO
-
Specific annual goals for purchasing from minority owned
businesses
-
Attainment of the goals tied to the compensation and
performance plans of senior management
-
Inclusion of Supplier Diversity in a
strategic plan
for diversity
- Head of
the Supplier Diversity program is at the senior management
level or above, and has control over corporate purchasing
-
Consideration of minority owned businesses included as a
formal part of the contracting procurement process
-
Second-tier subcontracting to minority owned businesses also
included as part of that process and written into the prime
supplier's contract
- A
comprehensive
database
of minority owned businesses that is actively maintained
and integrated into the purchasing process
-
Purchasing system that tracks supplier diversity performance
and can target specific contracts for additional focus,
outreach, or consideration
-
Visibility on the company's Internet website, including
program details, contacts, and list of products and services
purchased
-
Strategic partnerships with ethnic chambers, publishers, and
other organizations that can assist in outreach
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