Meeting Supplier Diversity Standards: Programs and Metrics

Study Overview

Compliance standards require that organizations extend efforts to promote and implement supplier diversity. Today’s forward-looking companies are molding compliance programs that grow external relationships with minority vendors. The resulting programs heighten the instances of minority-owned and women-owned business enterprises in procurement opportunities. This benchmarking presentation compiles metrics to identify ways other companies develop their internal processes to incorporate supplier diversity standards. This is a fundamentally cross-industry study, with a large focus on the utility industry. This knowledge exchange provides metrics and practices in the following critical supplier diversity areas:

• Internal and External Staffing
• Selection Criteria and Processes
• Key Management Tactics

Key Findings

• Most supplier diversity tasks are handled internally and only training is outsourced by some companies. Although the majority of benchmarked organizations handle supplier selection internally within the group, utility companies do so outside the group. Most utility companies also handle website/database management internally within their group.
• Supplier diversity heads at more than 2/3 of utilities and the overall benchmark class tend to report to VPs or higher-level executives. In fact, more than 1/3 of the benchmark class reports to C-level executives.
• More than three-quarters of the benchmark class establishes annual Minority-Owned and Women-Owned Business Enterprises (MWBE) goals.

Methodology

This research originated from a Best Practices, LLC Internet Benchmarking Exchange. It was conducted for a Global Benchmarking Council member and was based on surveys with benchmark partners across various industries, with particular focus on the utility industry.

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