Supplier Diversity For Dummies

Chapter 24

Ten Myths about Supplier Diversity

IN THIS CHAPTER

Misunderstanding the financial and productivity impacts

Failing to recognize supplier diversity as a specialized discipline

Having the wrong mindset and expectations

From organizations to entrepreneurs, supplier diversity is on everyone’s mind. Despite its popularity, many people still have misconceptions about supplier diversity that are generally based on entrenched mindsets rooted in unconscious bias, misinformation, and just plain ole bad habits. They prevent companies from using supplier diversity as a strategic tool for competitive advantage, which then prevents small and diverse businesses from leveraging supplier diversity to drive their business growth.

In this chapter, I highlight ten myths that continue to bind supplier diversity and have negative impacts on your efforts.

Supplier Diversity Will Increase How Much We Pay for Things

This myth derived from prime contractors (tier 1) that didn’t like being forced to use small and diverse businesses as subcontractors (tier 2) by their clients. They’d report that they’d made a “good-faith effort” but couldn’t find any vendors. When they did find them, those vendors ...