No one doubts the benefits offered by supplier diversity programs, but the importance of having an effective implementation plan cannot be stressed enough. Companies must ‘walk their talk’ – or fail to inculcate the importance of running a successful diversity program into their organizations and business processes.
If your supplier diversity program is not quite meeting your spend targets or achieving the expected supplier diversity, you may consider adopting some of the following best practices, which could transform both your Tier I and Tier II programs.
If you are a federal prime contractor, aim for the Federal Acquisition Regulation (FAR) award fee incentive. Increase your use of diversity certified sub-contractors as Tier II suppliers to meet supplier diversity goals.
FAR regulates and controls the way the government acquires goods and services from federal contractors. It assesses contractors on implementation of socioeconomic contract goals. Fully document and create an audit trail of your efforts to build a diverse supply base, , as the information would come in useful when undergoing a FAR audit. Failing a FAR audit could be detrimental to the interests of your company, in many ways as detailed below:
Inclusion of minority, woman-owned and other diversity businesses in your supply chain is just good business. It contributes to customer satisfaction, technology innovation, access to talent and insight into minority markets. Regularly review your supplier diversity program, communicating its successes throughout your organization. Look for ways to continually enhance the program. As you take steps to incorporate a successful program into your business ecosystem, the business gains will immediately become apparent.
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