SMI Supplier Diversity Playbook

Tools available to support a supplier diversity program

Introduction

Creating a more inclusive supply chain includes building transparency in the sourcing process through technology from end to end. Best-in-class supplier diversity programs leverage technology to identify sourcing partners and bid opportunities, measure progress toward supplier diversity goals, and create accountability. Investing in tools and technologies provides great benefits to a supplier diversity program through data enrichment and identification of potential suppliers to work with. This chapter focuses on the variety of common technologies in use, how to leverage them, and key considerations.

Types of Technology

A variety of tools and technologies exist to advance an organization’s supplier diversity program. The table below is a template to leverage when comparing different technologies that support program development.

The key types of technologies one should consider as part of a supplier diversity program are outlined below.

Supplier Relationship Management Technology

If available, leverage your Customer Relationship Management (CRM) platform to identify and engage key internal stakeholders to support the growth of your supplier diversity program and monitor the supplier diversity goals of your customers, industry partners, and tier two suppliers.

Enterprise Resource Planning (ERP)

Embed supplier diversity indicators such as those found in Chapter 3 into the ERP platform. Integrating supplier diversity into the ERP will support data collection activities such as pulling spend reports and storing suppliers’ third-party certifications within the platform. Inquire with the account manager of your ERP platform about additional processes available to support your institution’s supplier diversity efforts. Integrating diversity data into the ERP system includes working with your ERP partner to create financial accounting measures that include diverse suppliers. Examples include housing third-party certifications, spending with diverse suppliers, tracking diversity status, and creating a storehouse of diverse business contacts.

Data Enrichment Platforms

Data enrichment services are used to evaluate the certification status of existing suppliers such as third-party certification, certifying bodies, and recommendations for diverse suppliers to engage in various categories. Data enrichment services are externally sourced services. Inquire with your peers and supplier diversity organizations such as the Minority Supplier Diversity Council to identify data enrichment platforms to work with. Additional considerations and definitions to validate with suppliers conducting a data enrichment or internal spend dashboard can be found here.

Supplier Diversity Dashboards

A supplier diversity dashboard is a way to measure the current impact of an organization’s program. Development of a supplier diversity dashboard can be done internally in partnership with your organization’s analytics team, or through an external service.

When developing a dashboard, consider the frequency of data updates, how your supplier’s information is input into your ERP system, and the type of data and information you provide.

Examples of different ways to utilize your supplier diversity dashboard include:

• Measure and maintain your ongoing and historic spending with diverse suppliers by customized categories.
• Report current spending with diverse suppliers and progress towards goals.
• Benchmark your supplier diversity program against peer organizations.

An internal dashboard provides a transparent view of progress to key leadership within supply chain and accountable executives throughout the organization. MassDOT Supplier Diversity Dashboard is a great example of an internal supplier diversity dashboard with key measures and details including diverse business spend and a breakdown of diverse spend by various departments and categories.

 

Supplier Diversity Onboarding & Credentialing Portals

This type of portal is a technology service aimed at creating an onboarding process for potential and current diverse suppliers for your organization. The benefits of a portal include providing one central location to onboard potential suppliers, storing supplier credentials, and identifying existing diverse suppliers to include in bid opportunities. Explore if your ERP platform includes any of these services such as an onboarding process for diverse suppliers interested in partnering with your organization.

 

Enterprise Platform Intranets

Building program awareness and celebrating successes with employees is a great way to gain further engagement. Utilize your organization’s intranet to share program goals, educate employees and purchasing decision-makers on why supplier diversity is important, and uplift employees and leaders who are champions of supplier diversity. The intranet is a great way to highlight, celebrate and feature new diverse businesses to build awareness within your organization.

 

When seeking out potential partners to support your technology needs, consider engaging your network of diverse supplier support organizations, supply chain colleagues, community partners and entrepreneurial support organizations to identify any existing diverse suppliers that may be able to meet your technology needs.

 

Leverage Technology to Measure Your Program

Technology can be leveraged to create, manage and validate your supplier diversity goals. An example of a good use of a web platform can be found in the Appendix.



Types of measurements include Financial Spend,



Ecosystem Development,



Operational Deployment



.