The document provides information on how to establish an effective supplier diversity program. It discusses how supplier diversity has evolved from a compliance activity to a strategic imperative that can provide competitive advantages. It outlines eight key capabilities of best-in-class supplier diversity programs such as executive sponsorship, diversity goals and metrics, and inclusive sourcing practices. The document also provides examples of how to assess a company's current supplier diversity program, benchmark it against peers, identify opportunities to increase spending with diverse suppliers, and develop a roadmap to establish and accelerate the program.

1. How to Gain a Competitive
Edge:
A Deep Dive Into
Supplier Diversity Programs
Rod Robinson
Tuesday, December 13th, 2022
11:00am PST, 2:00pm EST, 7:00pm GMT Tara Dwyer
Webinar Coordinator, Supply Chain Brief
featuring Rod Robinson,
SVP of the Supplier Diversity
Practice, Insight Sourcing Group

2. Avetta provides a cloud-based supply chain risk management and
commercial marketplace platform. Our global solution is uniquely
designed to connect the world’s leading organizations with
qualified suppliers, driving sustainable growth. We build
trustworthy bonds through responsive technology and human
insight. Our process is collaborative. Our global reach is
complemented by our local expertise. Hundreds of global
organizations depend on Avetta to align their supply chains to
sustainable business practices, worldwide. Discover more at
avetta.com.

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4. Rod Robinson
SVP of the Supplier Diversity Practice,
Insight Sourcing Group
How to Gain a Competitive Edge:
The Importance of a
Supplier Diversity Program

5. In the last 30 years, Supplier Diversity has evolved from compliance-driven activity to strategic imperative.
Supplier Diversity as Strategic Imperative
Company Culture &
Workforce Inclusiveness
• Corroborates espoused beliefs that diversity adds value to the organization
• Enhances employee satisfaction and ability to recruit top talent
ESG Objectives
• Strengthens and enhances existing ESG programs (e.g., sustainability, DEI, etc.)
• Encourages greater cross-business unit collaboration
• Strong positioning for increased investor, customer and consumer focus on ESG efforts
Value Generation
• Introduces competition and enhanced requirements to drive improved pricing and services levels
• Drives supplier innovation through diversity of ideas and perspectives
Economic Impact
• Directly stimulates diverse businesses and their ability to maintain and create new jobs
• Generates tax revenue that can enhance critical infrastructure and services within communities
Brand Image
• Enhances company’s attractiveness to potential supply partners and distribution partners
• Appeals to an increasingly diverse internal and external audience (millennials, international clients, etc.)
Consumer Demand
• Positions company to meet requirements of consumers who support diversity and equity objectives
• Mitigates risk of lost business that could result from lack of diversity programs and/or focus
• Strong program can become differentiator and selling point in competitive sales environments

6. Best-in-class Supplier Diversity programs focus on eight key capabilities related to organizational alignment,
supplier diversity data transparency and procurement discipline
Supplier Diversity Capability Model
Change Management &
Awareness
Diversity Data & Reporting
Capabilities
Supplier Diversity Key
Capabilities
Executive Sponsorship &
Governance
Diversity Goals and Metrics
Sourcing Practices that
Support Diversity Inclusion
Corporate Supplier
Diversity Policies
External Diverse Supplier
Identification
Diverse Supplier
Development Program

7. Supplier Diversity Assessment – Program Gap Analysis
A gap analysis highlights opportunities relative to leading practice diversity programs, though it may not be critical
to achieve “leading” status across all dimensions
Diverse Supplier Development
Program
Change Management &
Awareness
Executive Sponsorship &
Governance
Average
Executive Support, Organizational Visibility, Program Ownership,
Organizational Alignment
Lagging Leading
Tier 1 Spend database tools and technology, Tier 2 Spend database tools and technology,
Refresh/Update strategy, Report Tracking & Sharing
Responsibility and Authority, Pre-Sourcing Process, Sourcing and Supplier Evaluation Process,
Contracting Process, Supplier Onboarding, Supplier Management, Contract Management
Tools & Technology for Diverse Identification, Tracking Suppliers’ Diversity status, SD Category
Strategies
Identification Tools and Processes, Matchmaking Resources, Supplier Cultivation, Referral
Network
Tier 1 Spend Goals, Tier 2 Spend Goals, Non-Spend Metrics, Goal-Incentive Structure
Bidder Lists, Unbiased Business Requirements, Supplier Evaluation and Scoring
Tool and Template Availability, Frequency of Communications, Visibility of Goals, Training
External Diverse Supplier
Identification
Diversity Data &
Reporting Capabilities
Sourcing Practices that
Support Diversity Inclusion
Corporate Supplier Diversity
Policies
Diversity Goals
and Metrics
Key Dimensions
Example

8. Tier 1 Diverse Spend Summary ($M)
Tier 1 supplier diversity baseline impact will be measured and broken down by diversity designations
$402.1M (30.4%)
4,017 suppliers
Small
$61.3M (4.6%)
519 suppliers
Women-owned
$45.6M (3.4%)
515 suppliers
Disadvantaged
$9.7M (0.7%)
131 suppliers
Veteran-owned
$36.8M (2.8%)
225 suppliers
Minority-owned
$0.7M (0.1%)
20 suppliers
Disabled-owned
$42.1M (3.2%)
310 suppliers
Geographically
Disadvantaged
--
LGBT-owned
$434.0M spend
(32.8% of spend)
4,200 suppliers
Diverse Suppliers (incl. Small)
Example

9. Supplier Diversity Assessment - Program Benchmarking
Current level of diverse supplier spend will be measured at the overall level to provide comparison to industry
peers
Example
Peer Group
All Companies in SpendHQ
Supplier Diversity Database
Companies with Sourceable
Spend of $50M-200M
Financial Services Companies
Performance Comparison (% Diverse Spend)
Average Performance Upper Quartile Performance Client Performance
Legend
3.6%
13.9%
4.9%
3.8%
7.1%
4.9% 13.9%
4.9% 7.7%

10. Supplier Diversity Assessment – Subcategory Benchmarking
Subcategory-level benchmarking can help identify opportunities to increase diverse spend
Example
Appliation Dev SW
$0.9
Taxi
<$0.1
Job Boards
$0.1
Market Research
<$0.1
Postage & Equip
<$0.1
IT Security Srvcs
$1.2
Auto Rental
<$0.1
Back Check & Drug
Test
$0.2
Event Space &
Rentals
$0.1
Doc Mgmt & Shred
$0.1
BI & Data Analytics
$1.3
Airfare
<$0.1
Medical Insurance
$0.2
Working Media
$0.1
Office Supplies
$0.1
IT Staffing
$1.8
Translation Srvcs
<$0.1
Car Service
<$0.1
Third Party
Administrator
$0.3
Promo Products
$0.1
Credit Reporting
Agencies
<$0.1
Credit Card Proc
$0.1
3 Others
<$0.1
Sales Softw are
$1.9
Contact Center
$0.1
Parking
$0.1
Contingent Labor
$0.4
Exhibitor Svcs
$0.2
Financial Services
$0.1
Sundries
$0.1
HVAC/R
<$0.1
ERP
$2.5
Lobbyists
$0.3
Rideshare
$0.1
HR Srvcs
$0.4
Creative
$0.2
Investor Relations
Svcs
$0.2
Flow ers & Gifts
$0.1
Arch & Interior
Design
<$0.1
IT Svcs
$2.7
Financial & Risk Adv
$2.2
Travel Mgmt
Companies
$0.4
Payroll Processing
$0.5
Public Relations
$0.2
Appraisal Services
$0.4
Small Parcel
$0.2
Office Furniture
<$0.1
Tires
<$0.1
Softw are
$10.3
Accounting &
Auditing
$3.2
Charter Aircraft
$0.8
Training
$0.7
Advertising
Agencies
$0.3
Banking Svcs
$0.4
Subscriptions
$0.4
Generators
$0.1
Fleet Maint & Repair
<$0.1
Signage & Graphics
<$0.1
Gen Industrial
Supplies
<$0.1
Finance Softw are
$14.7
Advisory & Mgmt
Consulting
$4.2
Meals &
Entertainment
$1.1
Recruiting
$0.8
Sponsorships
$0.3
Credit Ratings
Agency
$1.2
Corporate Insurance
$0.5
Food Services
$0.1
Fuel
$0.1
Direct Mail
<$0.1
Building Materials
<$0.1
IT Consulting
$15.2
Legal Svcs
$5.5
Hotels
$3.1
Relocation Svcs
$1.7
Events &
Conferences
$2.8
Financial & Market
Data
$1.8
Professional Assoc
$0.8
Facility / Property
Rent
$2.1
Fleet Mgmt
$0.2
Commercial Print
<$0.1
Uniforms / Mats /
Tow el
<$0.1
IT
$57.9
Professional Svcs
$15.6
Travel
$5.6
HR
$6.0
Marketing
$4.3
Banking Ops
$4.1
Corporate
$2.5
Real Estate &
Facilities
$2.3
Fleet
$0.3
Print
<$0.1
MRO
<$0.1
18 Others
$5.6
2 Others
<$0.1
5 Others
$0.6
3 Others
<$0.1
3 Others
<$0.1
Benchmark
Performance
Spend ($M) Spend (%) Subcategories
Above 75th
%tile $14 14% 9
Between 25th
– 75th
$26 26% 13
Below 25th
%tile $51 52% 56
Low Diversity Opp $8 8% 36
Total $99 100% 114

11. Supplier Diversity Assessment – Opportunity Identification
Assessment activities will focus on the highest impact categories to drive value by expanding diverse supplier
spend while also considering and targeting cost reduction opportunities
Example
Subcategory
Subcategory
Spend ($M)
Current Diverse
Spend ($M)
Current Diverse
Spend (%)
Target SD Spend
%
Incremental SD
Spend ($)
Top Incumbent(s) Potential Diverse Suppliers
Value-Added Reseller $11.0 -- -- #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Equipment Rental $5.5 $1.1 21% #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Accounting & Auditing $1.8 -- -- #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Voice & Data Services $5.4 $0.3 6% #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Corporate Insurance $9.0 -- -- #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Truckload $1.5 -- -- #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Relocation Services $0.7 $0.1 9% #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
General Software $15.7 $1.2 8% #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Control & Automation $0.4 -- -- #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Office Equipment $1.0 <$0.1 1% #% - #% $#.# - $#.# Supplier A, Supplier B
Supplier C (MBE), Supplier D
(WBE)
Total $52 $3 5% #% - #% $#.# - $#.#

12. Supplier Diversity Assessment – Roadmap and Approach
Key initiatives and activities to establish and accelerate the supplier diversity program will be sequenced on a
roadmap, and an accompanying work plan will identify key activities and owners for each initiative
Establish Policies, Processes and
Procedures
Jul ‘22 Aug ‘22 Sep ‘22 Oct ‘22 Nov ’22 and onward
Implement SD Program Governance
and Infrastructure
Launch Supplier Diversity Program
Executive
Sponsorship &
Governance
1.A Establish SD Governance
Structure
1.B Publish Vision Statement
and Public Website
1.C Incorporate Supplier Diversity Governance and Reporting into ESG /
D&I Efforts
Corp. Supplier
Diversity Policies
4.A Refine and Publish Supplier
Diversity Policy
Diversity Data &
Reporting
Capabilities
External Diverse
Supplier
Identification
5.A Refine Diversity Info
Requirements on Supplier
Registration
5.B Apply to Advocacy Orgs.
5.C Get Access to Diverse DBs
Diverse Supplier
Development
Program
7.A Establish Performance Routines with Top Diverse Suppliers 7.B Participate in Diverse Supplier Education Programs
Inclusive Sourcing
Practices
6.B Establish Diverse Supplier
Bid Participation
Expectations
6.A Update Sourcing
Tools/Templates to Capture
Diverse Info
Change
Management &
Awareness
8.A Train Team on SD
8.B Develop Responses to FAQs
3.B Develop Scorecards and Launch Reporting Processes
8.C Coordinate with Sales/Marketing on External Messaging
6.C Execute Sourcing Events with New SD Process and Tools
3.A Pilot Tier 2 Reporting
Diversity Goals
and Metrics 2.B Develop Process to Monitor Customer Requirements/Requests
2.A Establish Program KPIs and Targets
2.C Develop and Publish Supplier Diversity Growth Plan
Example

13. Q&A
TARA DWYER
/in/dwyertara/
Webinar Coordinator, Supply Chain Brief
supplychainbrief.co
m
ROD
ROBINSON
/in/rodrobinson/
insightsourcing.com
SVP of the Supplier Diversity Practice,
Insight Sourcing Group