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The fundamental goal of Supplier Diversity is to include businesses owned by diverse people in the supply chain of Fortune 1000 companies to build wealth within those communities. Over the course of the past ten years, I am happy to report that Fortune 1000 companies have consistently fulfilled their benchmark in increasing spend with diverse owned businesses and continue to do so. The Supplier Diversity process now has the opportunity to have positive impact on this trend by focusing their spend with truly diverse small businesses. Another year of data collection from over 1 million small businesses reveals an even wider gap between supplier diversity goals and objectives and wealth creation in companies owned by diverse peoples. The identification of the low hanging fruit (products and services offered by diverse owned companies) has become obvious to large procurement organizations. To make matters worse there is a significant number of pass-through and no-value added transactions and these commodities are at non-critical places within the supply chain. Another example, even though Staffing contracts result in the hiring of thousands of people, these positions usually require high technical skills, college degrees and subject matter expertise. As diverse companies become larger, their ability to hire employees like themselves becomes diminished because now they have to hire the best person in the marketplace to continue their growth and also to avoid any discriminating hiring practices. As we all know, the majority population in a few short years will be people of color and are very aware of the education, asset gaps and poverty levels that will be prevalent in our country right around the corner. The ability for anyone to turn around this trend is strained by the lack of resources dedicated to the Supplier Diversity process at large companies and their limited empowerment within their organizations. While strategic sourcing processes have made significant improvements on bottom line results these gains may have an inverse effect on long-term profitability. So who is going to tell the C-suite we have wasted 20 years chasing the wrong diversity spend goals?
The Supplier Diversity professional has exceptional skills and motivation to make a system work. If we take the time to setup a new direction and forget about scoring points (by the way … no one is watching), our goal needs to have a real Impact on diverse communities. Let’s take a serious look at where our country is and where we will be in a few short years if we do not include everyone in the fruits of economic success. Kenton Clarke is the Founder, President and CEO of Computer Consulting Associates International, Inc.
Heidi Richards Mooney is the Publisher and Editor-in-Chief of WE Magazine for Women, a Wordpress Web Designer, the author of a dozen books and a social media consultant and trainer. While I do love all of their clothing, I think one of the things that I like the most about this company is their slogan.

My objective is to create a paradigm shift to ensure that small businesses are the primary focus of that process. The billions of dollars of new business opportunities created by large corporations somehow still cycles back and remain in the hands of majority owned companies. Digging deeper, we also find little or no jobs created within diverse communities from this commoditized spending because the systems, processes and administrative support already exist to execute the contracts. These are not skills found amongst the unemployed, underemployed and under educated populations in our economically depressed communities.
Our standard of living, global competitive advantage and world power status are simply in jeopardy if we don’t raise the level of economic participation within the African American and Latino communities that will dominate our population. Procurement with companies with revenues under $1 million annually and a major increase in investment in education.
The confusion over best practices only being common-practices and follow the flock mentalities continues to drive status quo benchmarking.
Mitigating supply chain risk have included factors such as financial, political and natural disasters but have not examined the long term scenarios of a less educated work force, higher unemployment, increased poverty levels and a lowered standard of living in the U.S. That the money spent on events, memberships and staff has had no measurable impact on the populations we are trying to include in economic prosperity or gain as new customers. Who is going to report that in spite of our company spending over $1 billion with diverse owned companies, we cannot measure the number of new jobs or economic opportunities created for those less fortunate communities?
All they need is the time to sit back and see where they really are and establish a new paradigm. Fight for your dreams, work towards your goals, go on that vacation, share the Gospel, do what you are called to do.
As an example, purchasing $10 million dollars worth of IT equipment usually turns out to be a drop shipment of items purchased from a manufacturer. When you add in the effects of crime, we are headed towards a third world environment in a few short decades.
The network (30,000 people at most) that takes part in the Supplier Diversity process is too small and has not grown since I became involved over 30 years ago and remains relatively insignificant to the 8 – 10 million companies owned by diverse people.
Companies under $1 million in annual revenue tend to hire people that look like them, have between 5-10 employees and are from the same physical community. The limited research skills required to perform impact analysis would also pose challenges for a new direction in thinking.
After all, we can show we have spent billions of dollars and provide numerous examples of successful diverse companies whose owners are willing to give great testimonials.

Who is going to report that we continue to put most of our efforts into supporting diverse companies whose owners are already multi-millionaires? These over worked and sometimes unappreciated professionals deserve a framework in which they can really make an impact on the economic prosperity of our under utilized diverse communities.
CCAii, of Southport, Connecticut, is one of the nation’s leading multicultural Information Technology consulting firms. With the widespread knowledge that the majority population in the United States will shift to the current nations most uneducated, unemployed and crime filled communities much has to be done.
These transactions inflate diverse spend and create the illusion of progress and new economic development. This sector of commodities has produced many companies with annual revenues of over $50 million. In most cases, this type of purchase requires less than a few hours of administrative support for handling purchase orders, invoices and managing delivery schedules. Increasing their business by a small $500,000 contract will not only result in job creation, but further promotion and goodwill among their employees. There is no holding this train back because of our focus on financial reports measured on a quarterly basis. Problem is, there are sets of Go to companies for these commodities that are safe, low risk and highly qualified. We have been running down a path chasing the wrong goals for so long that it is going to be difficult to slow the train down. So there is no Einstein here, we simply have to manage the distribution of contracts among companies that will have an impact in the communities that need the help.
That also means non-diverse owned companies with high employment in the targeted communities. This represents about 50% of the total spend large corporations report with diverse owned companies.
Absolutely, the impact comes from employment and job creation not just wealth building for a few.

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