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Principle 3: The Supplier Diversity Business Process

A business process that supports the ability of the buyer to achieve their procurement goals for minority businesses enterprises (MBE), women-owned business enterprises (WBE) and veteran business enterprises (VBE) is a critical component of an effective Supplier Diversity Program. The business process must include a procedure or directive to include minority/women-owned suppliers in bidding opportunities and enough flexibility to source business to them.

The corporation must establish a Supplier Diversity Office to provide support both internally and externally. The corporation must have a function that can make the determination of who is and is not a certified MBE, WBE and/or VBE supplier. The Supplier Diversity Office will represent the corporation to the minority/women/veteran-owned business community, advocacy organizations and the government (if required). It provides a screening process for the procurement activity and directs potential suppliers to the appropriate buyers. It also provides the reporting structure for the corporation so that the Oversight/Steering Committee can track the performance of the organization in meeting the Program objectives.

Depending on the size of the corporation and how the buying function is distributed, there may be a need for additional support. In a decentralized purchasing organization (the buying function could be at the plant level), there may be a need for an assigned individual (full or part time) at each procurement location to be responsible for the Program. In corporations where there is a centralized procurement office, there may be a need for subcommittees based on department or commodity to select and work with minority/women/veteran owned businesses.  

There is no definitive support structure that would work equally well for all corporations. The corporation must review its organization and determine how best to support the efforts of the individual buyers.

Required Actions:

SD 2002.301   The Corporation shall establish a Procurement Practice to facilitate the inclusion of MBEs, WBEs and VBEs in the bidding process. The Practice should define the actions a buyer can take to place business with MBEs, WBEs and VBEs and the required approvals.

SD 2002.302   The Corporation shall establish a Supplier Diversity Office to support the procurement organization's efforts to meet the objectives of the Supplier Diversity Program.


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