Supplier Diversity Performance Metrics Checklist

The Supplier Diversity Data Collection process step involves gathering and organizing data from various sources to identify and track suppliers that are diverse in terms of their business ownership, race, ethnicity, gender, disability status, or other factors. This data is collected through surveys, questionnaires, and/or online platforms provided by the organization, as well as publicly available information such as census data, supplier directories, and industry reports. The goal of this process step is to create a comprehensive database that showcases the diversity of suppliers within the organization's network, enabling more informed procurement decisions and promoting equitable business opportunities for diverse suppliers.

In this step, suppliers are categorized based on their characteristics, such as product offerings, geographical location, and past performance. This helps to identify the most suitable suppliers for specific business needs. A supplier segmentation process involves analyzing data from various sources, including previous transactions, market research, and industry trends. It also takes into account factors like quality, reliability, delivery time, and pricing. By segmenting suppliers, companies can better manage their relationships with each group, negotiate more effectively, and make informed decisions about resource allocation. This step is crucial in optimizing supply chain efficiency and ensuring business continuity. The outcomes of this process will inform subsequent steps, such as supplier development and diversification strategies.

Identify diverse spend goal and baseline for procurement category. This involves researching and establishing specific targets for diverse supplier engagement within the given category, such as increasing diverse supplier contracts or reaching a certain percentage of diverse supplier spend. Determine the current state of diverse spending in the category by reviewing historical data, conducting supplier surveys, or utilizing industry benchmarks. Analyze these findings to establish a baseline measure against which future progress can be tracked and measured. This step is essential for developing an effective strategy to improve diverse spend within the category, ensuring that procurement teams have clear goals to work towards while also being able to assess their performance over time.

This process step evaluates the success of Supplier Diversity initiatives by tracking key performance metrics. It assesses the company's progress toward its diversity goals, including the number and proportion of diverse suppliers engaged in business transactions, the value of contracts awarded to diverse vendors, and the percentage of spending allocated to diverse suppliers relative to total procurement expenditures. The evaluation also considers the number of new diverse suppliers onboarded during a specific period, as well as any barriers or challenges hindering the growth of diverse supplier relationships. This data informs strategic decisions regarding resource allocation, program development, and communication strategies to promote Supplier Diversity initiatives within the organization.

This process step involves defining and documenting the tracking and reporting requirements for all stakeholders involved in the project or initiative. It includes identifying what data is to be collected, how it will be recorded, and who will have access to this information. The purpose of this requirement is to ensure that everyone involved in the project has a clear understanding of their responsibilities and expectations regarding tracking and reporting. This includes setting deadlines for submission of reports, defining formats for reporting, and establishing protocols for tracking progress. A comprehensive documentation of these requirements will help to prevent misunderstandings and facilitate effective communication among stakeholders throughout the project lifecycle.

This process step involves providing training and communication to suppliers on the company's diversity and inclusion policies and expectations. The goal is to educate suppliers on how to effectively partner with the company while promoting diversity in their own businesses. This includes informing them about the company's supplier diversity goals and objectives, as well as the benefits of partnering with diverse suppliers. Suppliers are also encouraged to participate in diversity training programs, which cover topics such as minority business development, women-owned business certification, and small disadvantaged business (SDB) requirements. The training and communication process is designed to foster a culture of inclusion among suppliers, ultimately leading to a more diverse and equitable supply chain.

The Supplier Diversity Program Goals and Objectives involve establishing clear guidelines for diversifying suppliers across various categories such as Minority Business Enterprises (MBEs), Women-owned Businesses (WOBEs), Service-Disabled Veteran-Owned Businesses (SDVOBs), and Small Businesses. The program aims to increase the number of diverse suppliers by creating a robust and inclusive vendor pool that reflects the community it serves. Key objectives include implementing policies and procedures for supplier diversity, tracking and reporting on spending with diverse vendors, providing training and resources for employees to engage with diverse businesses, and continuously assessing and improving the program's effectiveness.