• 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?

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  • Answers (6)

  • Brenton Cullen

    06/12/2018 04:14AM

    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

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    Jade Collins Thanks for the detail Brenton, great to see BHP adopting these practices

    17/12/2018 04:59AM

  • Brad Blonkvist

    28/11/2018 04:09PM

    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.

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    Jade Collins Thanks Brad for the comprehensive answer, and very interesting to hear about change in approach across categories.

    04/12/2018 04:20AM

  • Chris Cliffe FCIPS MIoD

    22/11/2018 06:04PM

    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.

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    Jade Collins Thanks Chris. Have you come across any initiatives that you thought were leading or best practice?

    26/11/2018 04:31AM

  • Marisol Buchanan

    04/12/2018 01:29AM

    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.

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    Jade Collins Thanks Marisol for sharing your extensive experience. In relation to SAP Ariba work, are they considering gender diversity/ women owned business as a criteria?

    04/12/2018 04:24AM

    Marisol Buchanan SAP Ariba has built into its sourcing and supplier management solutions the ability to select diverse criteria per the desire/need of the company who owns the software. The vast majority of Ariba Buying organizations do leverage these funtions due to the mandate to balance their vendor portfolios.

    06/12/2018 11:17PM

    Jade Collins Thanks Marisol, I appreciate your taking the time to reply!

    17/12/2018 04:57AM

  • Lilly Favaloro

    03/12/2018 11:59PM

    The Government has policies for SME and Aboriginal business engagement, so this is assessed as part of RFP due diligence.

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    Jade Collins Thanks Lily

    04/12/2018 04:18AM

  • Steve Mackenzie

    26/11/2018 02:57PM

    I’d like to understand what value supplier diversity & inclusion brings to an organisation. Cheers

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