Supplier Diversity in the Spotlight
23rd September 2011

As governments reel from global economic chaos and look at austerity measures and mechanisms to reduce their national debt, one small area of business is in the spotlight - supplier diversity in procurement. Put simply, this deals with opening up large scale public and private sector tenders to smaller companies, women and ethnic minority-owned businesses, enterprises owned by those with disabilities, as well as a raft of companies whose ethos is environment, energy and ethnical sustainability. So are any of these initiatives working?

The WEConnect International European Conference on 21st September 2011, hosted by legal firm Clifford Chance at their Canary Wharf headquarters in London, dealt with many of the current barriers from a WEConnect Member perspective. The conference brought together about 100 WEConnect members and corporate procurement and diversity specialists to share knowledge about supplier diversity and how to leverage certification to win procurement contracts. Representatives from corporate companies like Marriott Hotels, Ernst & Young, Clifford Chance, Accenture, Pfizer, IBM and Cisco explained the pathways for SMEs and women-owned businesses into supplying bigger firms.

The Conference also hosted a Dragon's Den style panel with 5 women owners pitching their businesses to four expert judges. Susan Heaton-Wright (pictured) of Viva Live Music, which provides innovative, bespoke live musical entertainment for corporate and private events, won the pitch, picking up a total of £1000 from all four judges. Rebecca Toal of Crowberry Consulting, specialists in energy-saving and environmental impact assessments, won the public vote with the prize of a "power lunch" sponsored by Goldman Sachs.

"WE Connect certification is very useful and the opportunities it provides to meet buyers has been helpful", said one attendee "but I am still looking to win a major piece of business through the network". A sentiment echoed by a number of other participants. Organisations like WE Connect Europe and MDSUK, the UK's leading supplier diversity advocacy organisation, know the benefits that supplier diversity can bring to big business. "Tapping into new streams of supply can save businesses money, bring innovative ideas to the fore and can give them a competitive edge". The aim is to make this accessible to SMEs and diverse businesses beyond just meeting form-filling, minimum "tick box" parameters and CSR targets for the corporate buyers.

Recent SME research by CREME at De Montfort University into public sector procurement found that "directors of many smaller businesses perceive the public sector procurement process as 'tortuous', 'arduous', and 'onerous'. Others feel that public sector procurement is for the 'big boys' and this has become a major cognitive deterrent for some smaller businesses. The most common feeling is one of uncertainty about whether they 'can do it' and if so, how to engage in the process. First, they question whether they are 'able' to tender (mindset) and, second, they are not sure whether they possess the capacity to do so. Both are key challenges for small businesses." The CREME report makes a number of recommendations.

Whether corporations and public sector bodies are able to implement any of these recommendations may yet determine economic growth at grass-roots level in Britain and elsewhere.

About WEConnect Europe

WEConnect Europe is the leading global supplier diversity initiative spearheading the connection of women-owned business and multinational corporations. It is Europe's leading advocate of women-owned businesses as suppliers to global and national corporations and government bodies.

Visit www.weconnecteurope.org for further information

About MSDUK

MSDUK is a private sector led, not-for-profit membership organisation created to provide a direct link between its corporate members and ethnic minority businesses to enable the building of mutually beneficial business relationships.

Visit www.mdsuk.org.uk for further information

About CREME (Centre for Research in Ethnic Minority Entrepreneurship)

Ethnic minority businesses contribute in the region of £40 billion to the UK economy. The Centre for Research in Ethnic Minority Entrepreneurship (CREME) has transformed the 'perceptions' of ethnic minority entrepreneurs by working with business policy-makers and influential organisations to engage collaboratively with overlooked or disregarded business communities. Headed by Professor Monder Ram OBE, CREME has built up an enviable reputation regionally, nationally and internationally for its pioneering research and business engagement activities, promoting diversity and enterprise. Based in the De Montfort University's Faculty of Business and Law, CREME delivers leading-edge expertise on business support for ethnic minority entrepreneurs

Visit www.creme-dmu.org.uk for further information