supplier diversity Content

The U.S. Bureau of Labor Statistics estimated in 2017 that 55 million people in the U.S. are gig workers, compromising about 34% of the workforce. That number is expected to become 43% in 2020, and probably higher with COVID-19 placing pressure on traditional work environments.

These numbers show the need to take a critical examination of the contingent workforce and its diversity/inclusion practices. A SIG Global Executive Summit discussion aimed to provide procurement professionals with tangible information and tips for increasing diversity and inclusion within the contingent workforce.

We're pleased to announce that this week's event features TWO experts: Thomas Kase, our VP of Research and resident supplier diversity expert, and Ronald Garnett, the head of San Diego’s Council for Supplier Diversity. In the second half of 2014, the Council was forcibly disaffiliated from the NMSDC (National Minority Supplier Development Council) and has since opened its doors as a more inclusive Council working with most diverse categories – covering minorities, women, and service disabled veterans. Thomas and Ron will discuss the background of the organizational change, with some details around what transpired after the NMSDC reorg last year, and then look closer at what the San Diego Council is doing in Supplier Diversity more broadly defined. Plus and PRO members, click through to register for NMSDC, Supplier Diversity, and San Diego held this Friday, May 2, from 10-10:30am Central.

It's Ask the Expert time again. This Thursday, 3/6 from 3-3:30pm Central, Spend Matters UK/Europe's Peter Smith will discuss how we should really think about supplier diversity. How far does it go beyond a "feel-good" initiative? What are the real reasons to consider it? Spend Matters Plus/PRO members, we hope to see you on Thursday!

Freshly returned from last week's NMSDC conference in San Antonio, Spend Matters analyst Thomas Kase will give a webinar this Friday, 11/8, from 10-10:30am Central to answer all of the burning supplier diversity questions from Spend Matters Plus and PRO members. Thomas says: "From sell-side contractual obligations, to buy-side policy requirements, to broader philosophical strategies, we will take a quick look at how procurement and supplier diversity overlap. Some of the main certifying organizations such as NMSDC will be mentioned, as well as IT solution and service providers focused on meeting corporate procurement and data reporting needs. We’ll also chat a bit about providers like ConnXus, Early Morning Software, CVM Solutions (Kroll), AECsoft USA (SciQuest), Supplier Gateway & DIR, VIVA IT, and Browz." Click on through to register!

On my way home from San Antonio, I had a chance to gather some more information from a few seasoned supplier diversity managers that I know – and there’s actually a good deal more to the story than I mentioned in the earlier article. The consolidation is officially around merging several chapters – where, as I mentioned, the San Diego chapter is supposed to join with Arizona, and Las Vegas should sort under Northern California, with the St. Louis area going to Indiana, and Ohio’s two councils becoming one. As it turns out, this is the national NMSDC position, several local councils including the ones listed above have not gone along with the plan – no can do! In fact, they’ve more or less waved a stiff one-fingered New York salute and walked out the door – allegedly taking their corporate members with them. In other words, we have a split under way! This just took place, so the story will undoubtedly take on more wrinkles as it unfolds.

If you have just started reading our supplier diversity research coverage on Spend Matters PRO, this is not the first piece to look at. First, […]

In supplier diversity, most firms make attempts to connect the SMWBEs (small, minority, woman-owned business enterprises) they know of with the procurement opportunities they are aware of. There are many ifs and buts along that path, and even if there is a good fit with the supplier in question, the timing might be completely off. This area is well covered under standard strategic and even tactical sourcing processes. The main challenge for supplier diversity is to stay close enough and early enough to the activity to be effective. Even then, it is still an introspective approach, since the opportunity usually goes to already known vendors.

In working with diverse suppliers, many take the phrases “capacity constraints” and “supply base consolidation” too lightly. Even the best prepared diverse supplier – the one walking in the corporate door fully registered in the company’s SLM (supplier lifecycle management) tool, with their current diversity certificate already uploaded, prepared with exciting products, and several client references – can still easily fail to get any business.

We've received many queries lately about Spend Matters PRO content: What is it? How is it different from regular Spend Matters coverage? For the next […]

To summarize in a nutshell, supplier diversity is about these steps: Identify able diverse companies. Introduce them to your supply chain. Build capacity and capabilities. Grow together – develop a lasting mutually economically beneficial relationship.

In November last year, we wrote about Buying Locally – a great segue story into a broad topic commonly rolled into a convenient bundle called supplier diversity and also a corporate activity that stirs up all sorts of emotions. Jason stoked the diversity fire with A Critical Topic for Black History Month: How Far Should Supplier Diversity Programs Go? in February this year. I think much of the controversy around this topic is based on lack of information and not enough perspective on the underlying drivers. Let me expand on that by quoting the famed Michael Porter – this is from Competitive Strategy, his legendary 1980 piece on the nature of competition: “Where experience cannot be kept proprietary, new entrants may actually have an advantage if they can buy the latest equipment or adapt to new methods unencumbered by having operated the old way in the past. A crucial strategic choice for competing in emerging industries is the appropriate timing of entry. Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first.”

In November last year, we wrote about Buying Locally – a great segue story into a broad topic commonly rolled into a convenient bundle called supplier diversity and also a corporate activity that stirs up all sorts of emotions. Jason stoked the diversity fire with A Critical Topic for Black History Month: How Far Should Supplier Diversity Programs Go? in February this year. I think much of the controversy around this topic is based on lack of information and not enough perspective on the underlying drivers. Let me expand on that by quoting the famed Michael Porter – this is from Competitive Strategy, his legendary 1980 piece on the nature of competition: “Where experience cannot be kept proprietary, new entrants may actually have an advantage if they can buy the latest equipment or adapt to new methods unencumbered by having operated the old way in the past. A crucial strategic choice for competing in emerging industries is the appropriate timing of entry. Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first.”