Reginald Williams
24 SUPPLIER DIVERSITY
Reginald Williams
There is no such legislation that currently exists in the UK, but even in the US it does not apply to the private sector. However half of Fortune 500 companies do have“ minority purchasing” programmes or do adhere to supplier diversity, with leaders being Merrill Lynch, Procter and Gamble, IBM, KPMG, to name a few.
“ We develop supply chain strategies to increase the level of purchases from small businesses owned by women of any race and minorities,” said Williams.
But Williams found that the‘ supplier diversity’ concept was not well received when it first began. The NMSDC had“ grave reservations” about the term and many black groups, including the National Association for the Advancement of Colored Peoples( NAACP) opposed the initiative, believing that it created a division between minorities.
“ My position was if we don’ t represent everyone’ s interests, how will we ever get anyone to support it. However groups felt that by involving everyone in the purchasing of goods and services, minorities would get an even lower percentage. Some of my customers( IBM, American Airlines) even uprailed against it in the early 80s. However, they were wrong.“ White males saw themselves as advocates and allies but because they control the majority of purchasing, things improved greatly and many of them wholly supported the initiative.”
Williams says in fact some of the key supporters of supplier diversity in the US are white males.“ Yes, we need white males to say supplier diversity is important to grow the economy, important to ensure women are at the table,” he said.
However, Williams says supplier diversity was not accepted greatly in the US until 2001 and it was not until last year that it became a routine practice among Fortune 500 companies in the US. In fact, as of last year, 95 % of companies in the US are now routinely practising supplier diversity.
Williams’ s company works both in the marketing arena and in the procurement of goods and services.“ We develop supply chain strategies to increase the level of purchases from small businesses owned by women of any race and minorities,” said Williams.
In the UK small and medium enterprises, black, Asian and minority ethnic businesses, womenowned and disabled-owned business are referred to collectively as“ diverse suppliers”. But in the US minorities refers to African Americans, Asian Americans, Native Americans, Hispanic Americans, women, and disabled persons.
“ We grow these groups economically,” said Williams.“ The more financially secure women are, the more capable they are of buying our goods and services. Our clients do not have to have compromise, they do not have to accept less than outstanding performance and top value for whatever they are purchasing.” So, is the US model of supplier diversity applicable to the UK?
“ No,” says Williams.“ What works here( in the US), will not necessarily work in the UK, as things work differently in the two countries. It has been tried but it failed. In addition, in the UK, the government has largely ignored supplier diversity which is quite concerning and needs to be addressed. It is the private sector that has really taken up supplier diversity.” But surely the UK can learn from the US when it comes to supply diversity?“ Certainly,” says Reggie.“ But firstly, a few things need to be put in place as there
PHOTO: Ethan Moore pmrphotography @ yahoo. com engage | uk ISSUE SIX 2008