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The following is a summary of a presentation for the business case for suppler diversity and supplier diversity certification given by Linda Stokes, President & CEO of PRISM International, Inc., a WBENC-certified firm.
The Business Case for Supplier Diversity
There are three major drivers behind the business case for supplier diversity and they include: 1. the shifting US demographics; 2. the need for compliance with small business goals; and, 3. the alignment with broader supply management objectives.
- Demographic shift — Women are leading the American changing demographics that are leading to an increase in the number and types of women and minority small businesses start ups. Over the past several years, women-owned firms have increased by over 20 percent. From a marketplace and community aspect, a diverse supply chain becomes an excellent selling point to the local community by building greater respect and goodwill.
- Compliance with small business goals — The Federal Government increased its purchasing to over $400 billion last year. This is expected to increase exponentially in the near future. Small business compliance is now a necessity for firms serving the government or looking to enter the government market. Innovative programs that lead to compliance with government small business goals can become a source of competitive advantage and new business. Firms that truly differentiate themselves in this arena proactively develop and manage their supplier diversity programs to ensure value that goes beyond compliance.
- Beyond government, however, many large Fortune 500 companies are setting supplier diversity goals for their supply chain partners. It is not uncommon for commercial companies to assess diversity initiatives of their own supply base. Being complacent can mean a direct impact on revenue. Supply management goals such as cost reduction, supplier diversity programs are a key facet supporting those goals. Small and diverse businesses typically have lower cost structures (meaning better value), are more creative and innovative, and can provide a customer focus beyond what larger firms can offer. Larger companies often embrace small companies with large potential, investing in them to help them realize their full potential. The benefit is a close and trusting relationship that can often become a source of competitive advantage.
In summary, there is growing evidence for a link between increased supplier diversity and increases in shareholder value. With a strong internal commitment to supplier diversity, successful companies are building a new type of competitive advantage that will enable them to more effectively leverage the value of a diverse supply base and thereby enabling them to compete more effectively in their marketplace.
Supplier Diversity Certification
Being certified as a Women's Business Enterprise (WBE) means that a firm has completed a rigorous and stringent certification process to confirm the business is owned, managed, and controlled by a woman or women. PRISM selected to be certified by the Women's Business Enterprise National Council (WBENC - http://www.wbenc.org/).
WBENC is the nation's leading advocate of women-owned businesses as suppliers to America's corporations. It also is the largest third-party certifier of businesses owned and operated by women in the United States. WBENC works to foster diversity in the world of commerce with programs and policies designed to expand opportunities and eliminate barriers in the marketplace for women business owners. WBENC works with representatives of corporations to encourage the utilization and expansion of supplier/vendor diversity programs.
Unlike other organizations that merely verify certification provided by other entities, WBENC is the only national organization providing a strict certification process that includes a detailed notarized affidavit, client interviews and site visits.
The WBENC certification for women-owned businesses is one of the most widely recognized and respected certifications in the nation. Accepted by thousands of corporations within the country and a number of federal and government agencies, your WBENC certification is an important marketing tool for expanding your organization’s visibility among decision makers in corporate supply chain diversity and procurement.
Conclusion
Small business owners may understand the professional or technical work of a business; but, that does not necessarily mean they understand a business that provides professional or technical work. Smart and knowledgeable small business owners must be aware of the economic and political forces impacting their businesses and marketplaces - like the business case for supplier diversity (demographic shifts, government support of small businesses and corporate supply chain goals). Once aware, they must take the necessary steps to compete smartly and effectively by obtaining a competitive advantage that is supplier diversity certification.
For more information about Linda Stokes, PRISM or strategically leveraging diversity and inclusion enterprise-wide, visit, prismdiversity.com
Linda H. Stokes is President & CEO of PRISM International, Inc., a WBENC-certified, full-service provider of innovative, proven diversity/inclusion; cross-cultural and harassment prevention strategies, consulting services, training programs and products. She is a recognized leader in the diversity and inclusion and coaches and mentors Executives, Chief Diversity Officers and diversity professionals at several of America’s top firms. She was recognized by the Women’s Executive Council of Orlando, Florida and awarded their Women’s Achievement Award for Business. 
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