Supplier Diversity For Dummies

Chapter 18

Getting a Grip on Goal Setting in Supplier Diversity

IN THIS CHAPTER

Underscoring strategic sourcing’s role in procurement

Considering whether your program needs a disparity study

Finding ways to add value beyond cost saving and utilization

Setting goals is a fundamental function of business, and it requires intentional thought, emotion, and behavior. In supplier diversity, the goal is the specified utilization with small diverse firms. Goal setting, which is usually expressed as a percentage of total spend, has become the industry-wide standard for measuring utilization and compliance.

In this chapter, I cover the importance of goal setting, how organizations set goals, and how a disparity study can play into the process.

Aligning Supplier Diversity Goals with Procurement Strategies

Organizational supplier diversity doesn’t happen in a vacuum. It starts in procurement, but increasingly organizations are connecting it to other parts of the organization, such as diversity, equity, and inclusion (DEI) or community relations. Wherever supplier diversity is housed, its goals should first be aligned with the strategic goals of procurement because of those departments’ interdependent ...