SMI Supplier Diversity Playbook
Chapter 5. Developing Strategic Partnerships
Strategic partnerships with community partners and supply chain integrators
are an important way to learn from peers, make connections, and advance collective goals to support the growth of diverse businesses. Strategic partners include community partners, peer organizations, and supply chain integrators. Strategic partnerships differ from building connections with diverse suppliers in the learning objectives, resourcing and priorities. Many strategies described throughout the playbook hinge on partnerships with organizations that support diverse businesses. It is important to build relationships with stakeholders and involve them in the design process of a diverse purchasing initiative. A particularly important subset of organizations are local chapters of supplier diversity organizations.
Often, these organizations are willing to share their supplier databases and can connect procurement teams to qualified firms. Local chambers of commerce, business development associations, and county or city governments can also be important partners. One strategy to encourage relationship building with community partners and supply chain integrators is to have an employee participate on the board of one or more of these organizations. This allows them to communicate supply chain needs, connect directly with potential suppliers, and build trust with the local business community.
The first step is to identify the organization’s existing network of community partners. The mapping process will uncover and identify current work underway to avoid duplicative efforts. Navigate to Chapter 4 to learn which departments to engage on this question. When mapping your external partners, consider which organizations your institution is in active partnership with and which organizations you still need to cultivate relationships with.
How to build partnerships with external organizations (e.g., chambers of commerce, certifying agencies, etc.).
Introduction
Successful supplier diversity strategies hinge on partnerships throughout the diverse business ecosystem. A particularly important subset of organizations are local chapters of supplier diversity organizations, examples of which can be found here.
These organizations can provide insight into barriers that diverse suppliers face, inform suppliers about available certification requirements, share their diverse supplier network and connect supply chain managers to qualified suppliers. Some examples of community partners in the diverse business ecosystem include local chambers of commerce, business development associations, and county or city government.
Identify Your External Partners
Consider which community partners your organization is currently collaborating with, and which organizations you still need to cultivate relationships with. Tips to building your diverse business ecosystem and cultivating relationships include:
- Make a list of the organizations that engage with diverse businesses in your network.
- Engage the key stakeholders from the list of identified partners. Share what your goals are around supplier diversity and learn about their current initiatives.
- Engage trading partners and other large local purchasing institutions
to learn from and partner with for supplier diversity initiatives.
Use Table 3. Identify Your External Partners to list the organizations and contacts from the business community and determine any partnership gaps that currently exist.
Consider what you’re able to contribute to these strategic partners including information about upcoming bid opportunities and wrap-around support services. Supporting the growth of diverse business communities requires an investment in relationships with large organizations across the community, and support of entrepreneurial support organizations (ESO).
The most successful supplier diversity programs have a robust strategy for external partnerships and participate in industry-wide collaboration.
Develop a Community Partnerships Map
Mapping your community partnerships will help uncover existing relationships between team members within your organization and the communities you support. Understanding an organization’s current participation with supplier diversity efforts will help to avoid duplicative activities, such as multiple departments providing financial contributions to support a community organization. Convene relevant staff members from public facing roles within your organization, including community engagement staff, to provide input on your existing strategic partnerships and community assets map.
Collaboration with other large local purchasing organizations and strategic partners is a key component of a successful supplier diversity program. On your own, or through a partner, such as a region’s local community foundation, convene other area purchasing professionals to talk about shared goals and areas in which collaboration could achieve success, and identify initiatives that no one institution could do alone.
Below are several questions that can assist in identifying and mapping the current community partners and supply chain integrators focused on building the ecosystem of supplier diversity.
- Which organizations do diverse businesses interact with to help them build capacity or receive technical assistance? What programs do they offer?
- What services does each respective organization already offer that supports supplier diversity? What current gaps in the ecosystem exist?
- How are other large purchasing organizations supporting diverse sourcing?
- Are there any other large purchasing institutions—such as a health system, universities, community colleges, public school systems, city and county governments—with similar supply chain needs?
Creating External Partnerships
Develop partnerships with local business organizations, entrepreneurial support organizations (ESO), and other large purchasing organizations across the country to explore ways to collaborate and increase diverse business support in your community. Organizations with an aligned focus such as the National Minority Supplier Diversity Council, the Women’s Business Enterprise National Council, or their regional equivalents are helpful organizations to connect with when the organization is getting started . Often statewide and national diverse-focused entrepreneurial support organizations (ESO) offer tools, best practices and matchmaking between corporate members and qualified diverse businesses.
Local chambers of commerce, business development associations, and county or city governments are also important partners. One strategy to encourage relationship building with organizations like these is to have the designated supplier diversity employee and executive sponsor participate on committees and boards of one or more of these organizations. This allows the staff members to communicate supply chain needs, collaborate on cultivating supplier diversity across the industry, connect directly with potential suppliers, and build trust with the diverse business community.
Create a list of staff members within your organization that actively collaborate with community partners. Engage members of the supplier diversity workgroup as well as positions with a public facing role
or organizational leaders that sit on community boards. As a team, work together to identify existing community partnerships your organization has with entrepreneurial support organizations and potential organizations to reach out to.
Leverage these questions to cultivate strong discussion and build shared goals when meeting with community partners. Building external partnerships takes time and intention. Leverage your existing passionate employees who participate in the supplier diversity workgroup or within leadership roles to engage in board and volunteer opportunities. The most successful supplier diversity programs include strong external partnerships.