An IBM Presentation on

Supplier diversity as a business practice1

Group- 22

• Sudhir Goyal -11022• Chandan Pahelwani -11047• Seema Shah -11073• Ramdevsinh Zala -11099

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What do we mean by supplier diversity?

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• Supplier diversity is a process-

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• Purchasing of goods and services from businesses owned and operated by:

– Minority Business Enterprises (MBEs),– Women Business Enterprises (WBEs), and– Disabled Veteran Business Enterprises (DVBEs).

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Importance of supplier diversity

• Facilitates success of suppliers.• Helps suppliers to find better position in

future in business and overall growth.• Helps to fulfill corporate social

responsibility and facilitate sustainability.• Increases competitive advantage.• Equal opportunities

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• Greater social inclusion• Fostering of local economic development• Diversification of supply risk

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United States- the beginners of supply diversity

• NMSDC – established in 1973• Aim• Employment and economic development.

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Challenges for MBE’s

• Rationalization of Supply chain• Increasing contract sizes• Use of modern production systems• Greater use of electronic ordering• Higher quality standards

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Guidelines for corporations to implement supplier diversity

• Understanding the need for integrating supplier diversity into business goals

• Top management support• Critical role of supplier diversity

champions• Necessity of building a supportive

organizational culture• Significance of relationship building

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Procedure to implement supplier diversity program

• Ask for help and advice.• Appoint a supplier diversity coordinator.• Conduct a supplier survey (to establish the

current status and future targets).• Review your existing policies and

procedures.• Formulate new procurement policy and

procedures.

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con. . .

• Communicate with staff and existing suppliers.

• Develop and implement a training program.

• Communicate with ethnic minority businesses.

• Develop targets and monitor your success.• Don’t be afraid to celebrate success.

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Example of 3M

• For strategic growth• For reenergizing their business• For making suppliers as customers• For lower costs and faster response which

helps the bottom line

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Conclusion Development depends upon:

Globalization Acceleration of legislation Stakeholder pressure

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Thank you04/11/23 14