Supplier Diversity

Supplier diversity is a business strategy to expand the vendor base to include all qualified vendors and to enhance an organization’s cost-saving opportunities. This is accomplished by fostering an inclusive procurement system that invites the broadest possible participation of all vendor sources. The Supplier Diversity Initiative will strive to increase the number of diverse business enterprises that supply goods and services to all PASSHE campuses. There will be no compromise in quality and service. The purpose is to expand competition, thereby increasing PASSHE’s access to cost savings.

PASSHE’s Supplier Diversity Initiative will require a commitment of time, money, and resources. Through its 14 campuses and the Dixon University Center , PASSHE must reach out to and partner with local businesses, chambers of commerce, and local business organizations, including minority and small disadvantaged business groups (e.g., regional minority purchasing councils, Hispanic chambers of commerce, Black chambers of commerce).

PASSHE’s Supplier Diversity Initiative must be integrated into the campuses’ culture and mission at all 14 Universities, as well as at the Dixon University Center . This commitment to the program must be System-wide and include top-level management. The Supplier Diversity Initiative will need to be marketed to the campuses. This can be accomplished by explaining and promoting the Initiative to all departments and department chairs on all campuses.      

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 Supplier diversity includes:

• Minority-owned business

• Women-owned business

• Small disadvantaged business

• Veteran-owned business

• Others, as defined by the Small Business Administration

PASSHE needs to create and promote a System-wide Supplier Diversity Initiative because:

• PASSHE needs to continue to be a good corporate citizen.

• PASSHE needs to be a positive role model in partnering with a diverse supplier base.

• PASSHE has a social responsibility to be inclusive and reach out to a diverse group of suppliers.

• It makes good business sense to focus on diversity.

• Community outreach is a vital function of PASSHE’s mission.

• Diverse suppliers are valued members of the community.

• PASSHE will be a resource to other organizations.

The Supplier Diversity Initiative should be:

• Visionary

• Compelling

• Long-term

• Multi-disciplinary (i.e., reach across our campus community)

Goals of the Supplier Diversity Initiative include:

• Developing new, creative, and innovative means to increase the utilization of MBE/WBE and small disadvantaged businesses in the procurement of goods and services at all PASSHE campuses.

• Creating a System-wide environment of inclusiveness and diversity in the procurement area.

• Expanding the vendor base to enhance cost-saving opportunities to PASSHE and its campuses.

• Fostering collaboration with diverse vendors and the PASSHE campus communities.

How to “grow” the Supplier Diversity Initiative:

• Develop a program, including a mission statement. This must include top executives’ endorsement (i.e., presidents, vice presidents, deans). Top executives must promote the program and support the purchasing department. One-time endorsement is not enough; there must be a campus-wide, top-down commitment, including students. Partner and work collaboratively with the Office of Social Equity to develop the Initiative.

• Create a paradigm shift in the purchasing department from purchasing status quo to a “value added” concept (i.e., buyers’ role as stewards of public funds, determination of procurement methods, advisors and counsel to campus community regarding purchasing issues, buyers not the same as purchase order processors). Ensure buyers’ endorsement early on. Buyers, as well as the campus community, must understand the value of the program.
  
  The purchasing staff, as well as the campus community, must participate proactively in the program.
  
  The purchasing manager serves as the diversity coordinator, who supports and helps the buyers promote the use of diverse suppliers, monitors buyers to make sure they are using the program and are staying on track, reports to the director if not on track, plans to keep on track, and continues to find sources.
  
  The Initiative must be marketed to PASSHE’s campus community.

• Create and provide funding for a budget for the Initiative. This commitment of funds will show commitment to the program and facilitate its success.
  
  Each PASSHE University should develop a “target dollar amount” for minority purchases.

• Track and report diversity spending. Analyze areas in which PASSHE spends the most money and find alternate local sources as viable alternatives.
  
  Ensure that PASSHE Universities are capturing all minority/disadvantaged vendors, either in the financial reporting system or in databases created especially for that purpose. This includes all purchasing card activity.
  
  Create a “Preferred Vendor List” for the campus community to use in selecting goods and services. Offer the campus community a viable, diverse supplier/vendor database.
  
  Develop and publicize a minority/disadvantaged vendor database to use in bidding for all goods and services (similar to what is being used in construction procurement).

• Build strong relationships and partnership opportunities with local diverse vendors. This can be accomplished by vendor fairs, active solicitation of diverse vendors, trade shows, etc.

• Develop a strategic sourcing program. Initiate collaboration and foster relationships with other PASSHE Universities.

• Create a Supplier Diversity Council. Ideally, this Council will include representatives from all areas of PASSHE, including decision-makers. The Council will assist the diversity coordinator in soliciting broad-based support of departmental staff and decision-makers. There is a need for broad-based input into supplier diversity, including input from the campus community.

• Create a PASSHE purchasing newsletter to promote the program, spotlight processes, identify what is working and what is not, and promote the successes (large and small wins) of the program.

• Get students involved.

What can we do before the Initiative is fully developed?

• Analyze current purchasing trends and find local diverse vendors in those areas.

• Attend vendor fairs to promote PASSHE.

• Host vendor fairs at the Dixon University Center and at the Universities.

• To promote PASSHE and the Initiative, have the director of purchasing at each campus contact local chambers of commerce and minority and disadvantaged business groups, and join applicable community organizations.

• Promote MBE/WBE workshops. Offer new workshops relating to supplier diversity and how to help diverse suppliers (e.g., insurance and bonding areas).

• Create a separate web site for the Supplier Diversity Initiative. Raise the purchasing web site’s presence, and promote a future Supplier Diversity Initiative web site.

• Begin the paradigm change to educate buyers and the campus community. 

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BEST PRACTICES

Supplier Diversity Best Practices

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UNIVERSITY LIAISONS

University Supplier Diversity Liaisons