FAQ

Q: Will engaging in a strategy for Minority-Owned Suppliers increase our costs?
A: Not necessarily. Ideally, a well-constructed Supplier Diversity plan will include goals and metrics for reducing costs through increased competition.

Q: Will the addition of Minority-Owned Supplier Strategy mean we have to buy inferior products/services?
A: No! Quite the opposite, as the addition of a Minority-Owned Supplier Strategy may increase the competitiveness of your bidding process. Be sure to utilize resources such as those named in Appendix II to help you locate reputable and quality diverse suppliers.

Q: Isn't seeking out Minority-Owned Suppliers equal to playing favorites?
A: No! In contrast, a strong Minority-Owned Supplier Strategy can guard against favoritism. Make sure you have pre-determined goals and metrics in place that, while in support of Minority-Owned Suppliers, ensure acceptance of supplier bids that are most competitive relative to pre-defined goals.

Q: Our company has an open purchasing process. Why do we need a special effort targeting women and minority-owned businesses?
A: Your Minority-Owned Supplier Strategy efforts, along with your company's individual business case for Supplier Diversity, should align with your organization's mission, vision, values, and ultimately endeavor to create new value for at least one of your current stakeholder groups. For example, if your organization is in the retail industry, do women and minorities shop there? Would you like for them to? Then it may make sense to employ women and/or minorities as suppliers to demonstrate to that stakeholder community that your organization is committed to providing opportunities for historically underserved communities. Also see the Business Case for Supplier Diversity.

Q: We have strong partnerships with our current suppliers. Why should we change what's already working for us?
A: Use already-strong partnerships with First-Tier suppliers as leverage to encourage the participation of Second-Tier suppliers. Even at the First-Tier level, the increased competition for you bid may result in lower bid prices, and ultimately, lower costs incurred by your organization.