{"id":3009,"date":"2011-02-28T15:10:00","date_gmt":"2011-02-28T15:10:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2011\/02\/28\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/"},"modified":"2021-07-27T10:08:12","modified_gmt":"2021-07-27T14:08:12","slug":"did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/","title":{"rendered":"Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?"},"content":{"rendered":"<p>I can\u2019t help it. I am always thinking outside of the proverbial box and challenging the way things are.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>Such was the case this weekend when I started thinking about supplier diversity. And wondering if the procurement profession has gotten it wrong for all of these years.<\/p>\n<p>Let me take you on an intellectual journey here. Let\u2019s begin by reviewing what typically constitutes \u201cdiversity spend\u201d in an organization. Diversity spend is usually considered money spent with suppliers who are 51% or more:<\/p>\n<ul>\n<li>Owned, controlled and operated by an ethnic minority<\/li>\n<li>Owned, controlled and operated by a woman<\/li>\n<li>Owned, controlled and operated by a military veteran<\/li>\n<\/ul>\n<p>And in the case of UPS:<\/p>\n<ul>\n<li>Owned, controlled and operated by a lesbian, gay man, a bi-sexual person, or individual who has had a sex change<\/li>\n<\/ul>\n<p>The purpose of supplier diversity programs is to give an advantage to subsets of the population who have historically been discriminated against. A way of compensating for past social ills by swinging the pendulum in the opposite direction in the present.<\/p>\n<p>That\u2019s noble.<\/p>\n<p>But does this type of approach really help anyone? Or help as many people as it should?<\/p>\n<p>Let\u2019s think about a situation where there are two suppliers who score equally well on all non-diversity-related criteria of a procurement department\u2019s evaluation. Supplier diversity status, then, could be a tie-breaker. In other words, if one is a \u201cdiversity supplier\u201d and the other isn\u2019t, then the diversity supplier wins.<\/p>\n<p>How about this for a wrinkle\u2026<\/p>\n<p>Let\u2019s say that Supplier A is owned by a woman. And Supplier B is owned by a caucasian man.<\/p>\n<p>Supplier A\u2019s workforce is 100% male. Supplier B\u2019s workforce is 50.5% male and 49.5% female. And, in both suppliers\u2019 locations, the ratio of men to women is 51:49.<\/p>\n<p>Supplier B\u2019s proportion of women in the workforce is actually greater than the proportion in the available labor population for the supplier. Maybe this is driven by the owner\u2019s desire to right the wrongs of past discrimination. Who knows? But one thing is certain: Supplier B will <em>not<\/em> be judged to be the socially responsible choice simply because of the <em>owner\u2019s<\/em> gender.<\/p>\n<p>Supplier A will win. And that award will help one woman. Whereas awarding the business to Supplier B may help dozens or hundreds of women.<\/p>\n<p>I could write a similar example for ethnic minorities, veterans, and members of the LGBT community. But I don\u2019t think that I need to for you to get the point here.<\/p>\n<p>I believe that the policy of determining diversity status of suppliers based on ownership, and not workforce composition, is fundamentally flawed. And we, as a profession, have been blindly following along based on \u201cthe way things have always been done.\u201d<\/p>\n<p>Is it time for a change? Is it time to get it right?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I can\u2019t help it. I am always thinking outside of [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4105,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go? - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?\" \/>\n<meta property=\"og:description\" content=\"I can\u2019t help it. I am always thinking outside of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-02-28T15:10:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-27T14:08:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-115.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go?\",\"datePublished\":\"2011-02-28T15:10:00+00:00\",\"dateModified\":\"2021-07-27T14:08:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\"},\"wordCount\":495,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Procurement\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/did-the-procurement-profession-get-supplier-diversity-all-wrong-from-the-get-go\/\",\"name\":\"Did The Procurement Profession Get Supplier Diversity All Wrong From The Get-Go? 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