thoughtleaders thoughtleaders thoughtleaders thoughtleader Doing More With Less—Keeping Supplier Diversity Relevant in Tough Times By Nelida Garcia Senior Vice President and Chief Procurement Officer AXA Equitable Life Insurance Company
I
In these challenging times, how can a procurement organization maintain a viable supplier diversity program? Keep supplier diversity sustainable and visible despite the changing business environment by developing strategies to do more with less.
programs. Collaborate with vendors on supplier diversity initiatives, and perhaps they can help you find other diverse suppliers. The opportunity is rich.
With change comes opportunity to be a strong partner and a creative catalyst. You can still do a lot to demonstrate commitment to your supplier diversity program.
Hosting educational and networking events for diverse suppliers is an effective way to increase your pool of diverse suppliers. Suppliers can learn more about the market and brainstorm opportunities while you provide them with the training and guidance they need to effectively do business with your organization. Consider collaborating with other departments, procurement teams from other companies, or with procurement or supplier diversity organizations. These alliances can produce effective results, while keeping costs low.
At AXA Equitable, we have two key drivers for success for keeping our supplier diversity program robust: engaging diverse suppliers in procurement activities and being creative with solutions and resources. You may have less, but that doesn’t mean you should do nothing at all.
“
You may have less, but that doesn’t mean you should do nothing at all.
”
Continue to meet with diverse suppliers regularly to understand how they are adapting in the current economic market. As you learn more about their direction and capabilities, guide them on how to best position their offerings for your organization. A small opportunity is better than none. Have them consider investing in the relationship by taking on a smaller project at little or no charge. This provides them exposure to your company, while you assess their capabilities at little or no risk.
Look for ways to include diverse suppliers when bidding out new projects. Partner them with other established suppliers for some of the work. This practice is more accepted now, and a win-win for all. Consider the workforce and supplier diversity of all vendors. Hold non-minority suppliers to a new standard— they should have diverse teams and solid supplier diversity
As downsizing and other events force individuals to reinvent themselves, many are starting their own businesses to meet unfulfilled market needs. As procurement professionals, we have the opportunity to mentor the diverse businesses of tomorrow. It is important to go beyond the ownership level and to make sure there is a willingness to embrace the entire concept of being a diverse supplier, from the hiring and support of diverse employees through the execution of quality services. We can provide business insight and information on available diverse supplier resources, always remembering that, ultimately, quality and value are the keys to success. PDJ
Prof iles in Div er s it y Jou r na l
November/December 2009
29