Diversity MBA Magazine - April 2008 - (Page 58) SUPPLIER DIVERSITY– PROGRAMS & PRACTICES Supplier diversity incorporates minority-, women-, and disabled-veteran-owned companies into corporate supply chains. Social unrest around parity in the 1960s made it a corporate imperative to ensure access to business opportunities is available to everyone. Today, supplier diversity professionals and the organizations where they work understand that as our country’s demographics change, supplier diversity is a consumer-driven necessity. When demographics and buying power are tied to the supply chain, the impact is obvious -- supplier diversity provides a measurable return on investment for companies. The Programs There are several levels of supplier diversity programs. In a rudimentary program, someone simply answers the phone and directs it internally. According to Sheila Hill, president of the Chicago Minority Development Council (CMBDC), “A world-class program has senior-level commitment. Buyers are engaged, measured by their performance. People are developed both internally and externally, there are scholarships and training for minority companies, and compensation is tied to performance. Companies with a world-class program understand that supplier diversity provides them with a return on investment. It is not a social initiative; it is a business necessity.” “Products procured though the supply chain or generated from the chief financial officer, and business services that represent a significant amount of corporate spending such as legal services, investment services, marketing services, accounting services are included. The best business diversity programs include full integration into the supply chain and professional w w w. d ive r s it y mb a ma g a z in e. c o m BY YVONNE F. BROWN 58 http://www.diversitymbamagazine.com
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