Supplier Discrimination: Are You Guilty?<\/h3><\/div><\/div><\/div>PurchTips edition #363<\/p>\n<\/div>
Are Your Business Practices Undermining Supplier Diversity?<\/h4><\/div><\/div><\/div>It\u2019s not uncommon for organizations to have supplier diversity programs. Supplier diversity programs are supposed to encourage buying from a wide variety of suppliers, including small suppliers and businesses owned by people from demographic groups that have been historically discriminated against.<\/p>\n
Yet, despite the proliferation of supplier diversity programs, many of the same organizations that have them have business practices that unintentionally, but effectively, discriminate against small suppliers. If your organization has business practices with the following characteristics, your organization is guilty of making it more \u2013 and not less \u2013 difficult for small suppliers to do business with you:<\/p>\n
\n- Your organization mandates the use of payment terms that are net 60 or longer. Even net 45 terms can strain a small supplier\u2019s cash flow.<\/li>\n
- Your organization has standard insurance requirements for all transactions \u2013 including the most basic \u2013 that are beyond the insurance levels typically maintained by small businesses.<\/li>\n
- Your organization uses complex and extensive terms and conditions for all transactions \u2013 including the most basic \u2013 that can compel small suppliers to seek expensive legal review before they can accept your orders.<\/li>\n
- In your supplier qualification process, your organization requires \u201caudited\u201d financial statements without knowing the immense cost of financial statement auditing or the lower-cost, but often equally acceptable, alternatives of \u201creviewed\u201d or \u201ccompiled\u201d financial statements.<\/li>\n
- Your organization has no policy or goals for awarding bidding opportunities or orders to small or diverse suppliers.<\/li>\n<\/ul>\n
A supplier diversity program is great to have. But if your organization doesn\u2019t supplement the program with small business-friendly business practices, your supplier diversity program may be undermined and your organization may be guilty of de facto discrimination against small suppliers.<\/p>\n
Recommended Reading<\/b><\/span><\/p>\n\n- Strategic Supplier Diversity Best Practices <\/span><\/a><\/span><\/li>\n
- Supplier Diversity Goals<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n
- Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b>\u00a0Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in\u00a0NLPA Learning<\/span><\/a>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/epm-pic.jpg\" "\\"epm-pic\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #363<\/p>\n<\/div>
Are Your Business Practices Undermining Supplier Diversity?<\/h4><\/div><\/div><\/div>It\u2019s not uncommon for organizations to have supplier diversity programs. Supplier diversity programs are supposed to encourage buying from a wide variety of suppliers, including small suppliers and businesses owned by people from demographic groups that have been historically discriminated against.<\/p>\n
Yet, despite the proliferation of supplier diversity programs, many of the same organizations that have them have business practices that unintentionally, but effectively, discriminate against small suppliers. If your organization has business practices with the following characteristics, your organization is guilty of making it more \u2013 and not less \u2013 difficult for small suppliers to do business with you:<\/p>\n
\n- Your organization mandates the use of payment terms that are net 60 or longer. Even net 45 terms can strain a small supplier\u2019s cash flow.<\/li>\n
- Your organization has standard insurance requirements for all transactions \u2013 including the most basic \u2013 that are beyond the insurance levels typically maintained by small businesses.<\/li>\n
- Your organization uses complex and extensive terms and conditions for all transactions \u2013 including the most basic \u2013 that can compel small suppliers to seek expensive legal review before they can accept your orders.<\/li>\n
- In your supplier qualification process, your organization requires \u201caudited\u201d financial statements without knowing the immense cost of financial statement auditing or the lower-cost, but often equally acceptable, alternatives of \u201creviewed\u201d or \u201ccompiled\u201d financial statements.<\/li>\n
- Your organization has no policy or goals for awarding bidding opportunities or orders to small or diverse suppliers.<\/li>\n<\/ul>\n
A supplier diversity program is great to have. But if your organization doesn\u2019t supplement the program with small business-friendly business practices, your supplier diversity program may be undermined and your organization may be guilty of de facto discrimination against small suppliers.<\/p>\n
Recommended Reading<\/b><\/span><\/p>\n\n- Strategic Supplier Diversity Best Practices <\/span><\/a><\/span><\/li>\n
- Supplier Diversity Goals<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n
- Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b>\u00a0Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in\u00a0NLPA Learning<\/span><\/a>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
It\u2019s not uncommon for organizations to have supplier diversity programs. Supplier diversity programs are supposed to encourage buying from a wide variety of suppliers, including small suppliers and businesses owned by people from demographic groups that have been historically discriminated against.<\/p>\n
Yet, despite the proliferation of supplier diversity programs, many of the same organizations that have them have business practices that unintentionally, but effectively, discriminate against small suppliers. If your organization has business practices with the following characteristics, your organization is guilty of making it more \u2013 and not less \u2013 difficult for small suppliers to do business with you:<\/p>\n
- \n
- Your organization mandates the use of payment terms that are net 60 or longer. Even net 45 terms can strain a small supplier\u2019s cash flow.<\/li>\n
- Your organization has standard insurance requirements for all transactions \u2013 including the most basic \u2013 that are beyond the insurance levels typically maintained by small businesses.<\/li>\n
- Your organization uses complex and extensive terms and conditions for all transactions \u2013 including the most basic \u2013 that can compel small suppliers to seek expensive legal review before they can accept your orders.<\/li>\n
- In your supplier qualification process, your organization requires \u201caudited\u201d financial statements without knowing the immense cost of financial statement auditing or the lower-cost, but often equally acceptable, alternatives of \u201creviewed\u201d or \u201ccompiled\u201d financial statements.<\/li>\n
- Your organization has no policy or goals for awarding bidding opportunities or orders to small or diverse suppliers.<\/li>\n<\/ul>\n
A supplier diversity program is great to have. But if your organization doesn\u2019t supplement the program with small business-friendly business practices, your supplier diversity program may be undermined and your organization may be guilty of de facto discrimination against small suppliers.<\/p>\n
Recommended Reading<\/b><\/span><\/p>\n
- \n
- Strategic Supplier Diversity Best Practices <\/span><\/a><\/span><\/li>\n
- Supplier Diversity Goals<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n
- Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?<\/span><\/a><\/span><\/li>\n
- Managing Supplier Performance<\/span><\/a><\/span><\/li>\n<\/ul>\n
NLPA Learning<\/b><\/a><\/span>:<\/b>\u00a0Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in\u00a0NLPA Learning<\/span><\/a>.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>
Need Better Performance From Your Procurement Team?<\/h5><\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
- Supplier Diversity Goals<\/span><\/a><\/span><\/li>\n
- Strategic Supplier Diversity Best Practices <\/span><\/a><\/span><\/li>\n
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/success.jpg\" "\\"success\\"")
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