Vendor Diversity Tracking & Compliance
More and more companies are tracking their companies “diverse” vendor population and reporting on purchase percentages and total spend dollars of these diverse vendors. For starters, it is important that we define what we mean by diversity or diverse vendors. Diverse vendors are a designation that is given to companies where a majority of its ownership qualify as a group deemed as diverse. This can be based on such factors as race, ethnicity, gender or even classes such as veterans or other designations such as LBGT.
Companies may choose to let vendor identify themselves and “self-certify” their status. This often happens in companies that want some visibility into their vendor makeup but are not concerned about reporting or hitting targets for government or other related contracts. Other companies interested in a more formal process may require vendors to provide proof of certification of their particular diversity classification by providing a copy of the actual certificate from an authorized certifying entity. In these instances there is a need to track the expiration of these certifications to insure vendors are in compliance and the data they are reporting is accurate.
Having identified vendors diversity classifications, companies can then track the volume and types of spend with those organizations and use that information for contracting, marketing, investor relations, contract compliance, or other types of uses. The problem however, for many companies this process of identifying, onboarding, tracking and vetting certification compliance, and reporting spend patterns can be extremely labor intensive and costly.
Vendor portals, or supplier portals, that have vendor onboarding and vendor management capabilities can go along way to helping with the diversity tracking, certification, compliance, and reporting processes. helping companies automate this process. By establishing a vendor self-service model, vendors now have the capability and responsibility to provide all the data and documentation necessary and buying companies can easily establish and manage a diversity program via the vendor portal. The buying company can then identify diversity vendor, track diversity vendor information and report on diversity spend with minimal effort. The vendor onboarding and spend management capabilities of a robust vendor management portal can add a lot of value to companies by promoting vendor self-service, decreasing costs, and improving vendor relations. Contact ICG Consulting today for more information or for a demonstration of one of our comprehensive vendor portal or supplier portal solutions and the diversity components of those portals.