Hi, I'm curious to know who includes supplier diversity criteria as part of their procurement tender requirements? If so, what types of areas do you include?
Major Project in WA has stipulated minimum diversity requirements to align with our Global corporate target, this was down to the specific role level to ensure that there was a balance through senior and leadership roles. This received a rating within the RFP and for the award contracts is something that is continually reviewed. We recorded this at 2 levels one for the for the proposed contract, and secondly what their organisational diversity is overall
In the US, we typically ask a number of questions related to supplier diversity, mainly for reporting requirements. Are you a MWBE organization? If so, which type? Would you support our Supplier Diversity program stated below? Can you annually report out on your firm's use of MWBE suppliers? Does your firm take MWBE status into consideration when making your own purchasing decisions?
However, those questions are often a very very small % of the RFP score weighting. In some cases, certain spend lends itself to MWBE suppliers (e.g. printing, consulting, facilities) and in some cases it doesn't (e.g. enterprise software). I've therefore had clients where for a particular tender, the question is binary decision - we are only going to select MWBE suppliers for this bid or we are going to give MWBE suppliers additional points to tilt it to their favor.
Yes, always. Always ensure that Diversity & Inclusion processes are part or the Supplier's processes both in terms of recruitment and HR practices and also in their own procurement procedures. In certain circumstances, you may be in a market where the suppliers are ahead of you in this area, so also an idea is to encourage them to help you with this area too as part of delivery - not necessarily as a contract deliverable.
I have been working with Fortune companies for the last 15 years and diversity has been a hot topic. As a diverse Supplier myself, I have been working with SAP Ariba to create a catalog of sustainable diverse vendors to address strategic and non-sourced spend. This includes veteran, disabled and minority vendors who offer goods and services that are accessible to all organizations, not just LE. The importance of this is that by leveraging this minority group, you not only get more competitive pricing and added value, but also the ability to invest in SME growth for our county. Winning just one new contract could mean adding an average of 3 new employees to that organization. No matter the size of the buying organization, there are a multitude of opportunities to add diverse vendors.
In general, most buying organizations provide a supplier on-boarding document that has check boxes based on the type of diverse vendor you may be. Additionally they ask that certifications are provided as well as a completed profile on their supplier portal or sam.gov.
The Government has policies for SME and Aboriginal business engagement, so this is assessed as part of RFP due diligence.
I’d like to understand what value supplier diversity & inclusion brings to an organisation. Cheers