An IBM Presentation on

Supplier diversity as a business practice

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Group- 22
Sudhir Goyal Chandan Pahelwani Seema Shah Ramdevsinh Zala -11022 -11047 -11073 -11099

4/15/2013

Tolani Institute of Management Studies

What do we mean by supplier diversity?

Supplier diversity is a process-

4/15/2013

Tolani Institute of Management Studies

 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).

4/15/2013

Tolani Institute of Management Studies

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

4/15/2013

Tolani Institute of Management Studies

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

4/15/2013

Tolani Institute of Management Studies

United States- the beginners of supply diversity

NMSDC established in 1973 Aim Employment and economic development.

4/15/2013

Tolani Institute of Management Studies

Challenges for MBEs

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

4/15/2013

Tolani Institute of Management Studies

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

4/15/2013

Tolani Institute of Management Studies

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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Tolani Institute of Management Studies

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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. Dont be afraid to celebrate success.

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Tolani Institute of Management Studies

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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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Tolani Institute of Management Studies

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Conclusion
Development depends upon: Globalization Acceleration of legislation Stakeholder pressure

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Tolani Institute of Management Studies

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Thank you
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