Supplier Development Group

The Supplier Diversity Group

The Supplier Diversity Group (SDG) is focused on education, promoting the benefits and raising awareness regarding the competitive advantage of corporations utilizing minority and women-owned enterprises (M/WBEs). The SDG is patterned after the national Minority Women’s Business Development Group (MWBDG) of the Institute for Supply Management (ISM). The group is committed to communicating success stories, which result in win/win economic impacts to the bottom-line of both customers and suppliers.

Our vision is that all ISM-Houston member companies embrace the principles of Supplier Diversity and incorporate them into their supply chain/procurement strategies. The mission is to motivate, educate and provide guidance to ISM-Houston member companies in their establishment of meaningful Supplier Diversity Initiatives. The Supplier Diversity Group will endeavor to educate ISM-Houston members on Supplier Diversity concepts and methodologies through workshops, seminars, and dinner meeting speakers. In addition, we hope to serve as a resource for benchmarking best practices and act as a liaison to local supplier diversity business councils. Through networking, the SDG will advocate the advantages of corporate relationships with M/WBEs.

The Supplier Diversity Group members range from individuals in the procurement profession, educators in supply chain management, supplier diversity professionals and leaders in minority supplier development organizations. This group is sponsored by and is part of ISM-Houston but membership in ISM-Houston is not necessary to participate in this group.

If you are interested in participating in the Supplier Development Group please contact the group’s director, Jane Henry.

EVENTS

VISION

Our vision is that all ISM-Houston member companies embrace the principles of Supplier Diversity and incorporate them into their supply chain-procurement strategies.

MISSION

The Supplier Diversity Group (SDG) motivates, educates, and provides guidance to ISM-Houston member companies in their establishment of meaningful Supplier Diversity Initiatives.

Objectives

Raise Awareness
Business Case
Educate
Advocate
Promote the Benefits
Bottom Line Effective
Competitive Advantage
Win / Win Econimic Impact
Enhance Supplier Base
Benchmark Beat Practices
Serve as a Resource
Act as a Business Council Liaison

Presentations of business cases of corporate successes with MWBEs will clearly communicate the importance of Supplier Diversity. The Supplier Diversity Group (SDG) will endeavor to educate ISM-Houston of such successes on an on-going basis through workshops, seminars, and dinner meeting speakers. Through networking, the Supplier Diversity Group (SDG) will advocate the advantages of corporate relationship with MWBEs.

The competitive advantage of using MWBEs can save money for ISM-Houston member companies. These successes result in win/win economic impacts for both customer and supplier. Inclusion of MWBEs in bid opportunities enhance the supplier base; bringing special strengths associated with intense focus and streamlined decision-making.

Supplier Diversity Group (SDG) members will be available as resources for demonstration of best practices in building successful corporate Supplier Diversity Initiatives. Group members will also serve as reference liaisons to the local supplier diversity business councils.

SUPPLIER DIVERSITY STARS

TOOL KIT

Supplier Diversity Buyers Group Tool

The ISM-Houston Supplier Diversity Buyers Group Supplier Diversity
Tool Kit was created to assist members in identifying opportunities.

This tool shows how Supplier Diversity impacts sourcing process.
The tool is available for download to both a power point and excel format
listed below.

Supplier Diversity Tool —- Excel Format

Supplier Diversity Tool — Power Point Format

Click Here For ISM’s Flyer Explaining the CPSD Certification Program Requirements

FREQUENTLY ASKED QUESTIONS

What is Supplier Diversity?

Supplier Diversity is defined as a proactive business process that seeks to provide all suppliers equal access to purchasing opportunities. It promotes supplier participation reflective of the diverse business community and encourages economic development.

What is a MBE?

A minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. “Minority group members” are United States citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly-owned business, at least 51% of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members.

What is a WBE?

A WBE, is a woman business enterprise. It is a for profit enterprise, regardless of size, that is physically located in the United States or its trust territories, which is 51% owned, operated and controlled by one or more women that are United States citizens. Designation as a WBE is based solely on gender, not ethnicity.

What is certification?

Certification is the process by which corporations verify that businesses meet the criteria of ownership to qualify as a minority or women-owned enterprise (MWBE).

The MWBE certification will show that the business is at least 51% owned, operated and controlled by minority or women. Certifications are accepted from federal, state, and city agencies and also national business councils as well as their regional affiliates

Criteria for Certification:

Fifty-one percent ownership by an ethnic minority (African American, Asian American, Latin American, or Native American Indian), or woman/women
Proof of effective management of the business (operating position, by-laws, hire-fire and other decision-making role) by the ethnic minority or woman/women role holders
Control of the business as evidenced by signature role on loans, leases and contracts
US Citizenship or US Resident Alien Status

Why do M/WBEs need to be certified?

Using certified MWBE firms ensures that a firm is actually owned, operated and managed by a minority or women. Certification through WBEA or HMBC ensures that the M/WBE firm meets the standards and procedures for national certification as a WBE by WBENC or a MBE by NMSDC. As part of the certification process, HMBC or WBEA performs a site and undertakes due diligence regarding the actual operations and management of the enterprise.

Why do M/WBEs need to be certified?

What is a HUB certified supplier?

HUB certification is the designation as a historically underutilized business certified by the State of Texas. A HUB certified firm is a WBE, MBE or an economically disadvantaged business enterprise.

What is second tier?

Second Tier is a function of who is the customer. A first tier company is a supplier that invoices your company for goods and/or services rendered directly by that supplier. A second tier supplier is a supplier that invoices your company’s first tier supplier for goods and/or services rendered. The second tier process strongly encourages or requires its prime suppliers/contractors to develop a program that engages M/WBE in its supply process and encourages the development of MWBE firms.

What is WBEA?

The Women’s Business Enterprise Alliance (WBEA) is an independent 501 (c) (3) full-service purchasing council for nationally certified women’s business enterprises (WBEs). WBEA provides educational, networking, procurement-related, and informational programs and services that foster growth and business opportunities between WBEs and purchasing entities, including major corporations, government agencies and other entities seeking to provide business opportunities to WBEs. WBEA is a women’s business organizational partner with the Women’s Business Enterprise National Council, which provides the standards and procedures for certification administered by WBEA. For more information, please call 281-931-9988 ext.12 or email dbaron@wbea-texas.org.

What is WBENC?

The Women’s Business Enterprise National Council (WBENC, pronounced wee-bank), is dedicated to enhancing opportunities for women’s business enterprises in America’s major business markets. In partnership with women’s business organizations throughout the United States, WBENC provides access to a national standard of certification and provides information on certified women’s businesses to purchasing managers through an Internet database — WBENCLink.

Nominate your company’s Supplier Diversity Program to be honored by ISM Houston! Know a stellar SD professional, program, or advocate? Now is your chance to show them what you think of them. Join ISM Houston in celebrating the accomplishments of Supplier Diversity in Houston during the May Dinner Meeting where we will host an Evening with the Supplier Diversity Stars