Most companies have a strong commitment to the economic development of the communities they serve. One way to honor this commitment and improve your supplier relationship management (SRM) is by aggressively working with your prime suppliers to implement a second-tier initiative.
This initiative will design and assist prime suppliers in the development of effective diverse supplier (subcontracting) initiatives and to track mandatory reporting. Your prime supplier’s cooperation in this project is essential so make it easy for them to implement. You can do so by handling the bulk of the logistics and communications.
This initiative should be a supplement and not a replacement for existing efforts aimed at increasing meaningful opportunities for diverse suppliers to participate as first-tier providers. Doing so demonstrates your company’s commitment to affecting real change when it comes to championing the businesses of minorities, women, and other disadvantaged businesses. It is not only smart business, but it increases the likelihood that your supplier diversity goals will be met.