Every supplier diversity program starts as an idea, a spark of inspiration rooted in the desire to simultaneously nurture the best ideas on the market and create a level playing field of opportunity. Good intentions notwithstanding, no progress will be made, and no benefits will be realized until that idea is communicated to someone else – a lot of ‘someone elses’ in fact.   

Although the initial launch of a supplier diversity program holds significant potential, it is also the moment that diversity efforts can break down. Companies often launch programs without having prior experience managing them, and not knowing the terminology specific to the supplier diversity can easily become an impediment to progress.  

There are many glossaries devoted to the subject, but in this article, I will review a few of the most commonly used – and often misunderstood – supplier diversity terms, phrases, and acronyms. 

While supplier diversity programs have historically focused on the diversity of a company’s ownership, this is not the only way to influence diversity in the supply chain. Corporations with significant procurement budgets now realize that they can use their purchasing power to influence workforce diversity in much the same way that they have historically worked to increase expenditures with traditionally underrepresented suppliers. This realization has led to the new and growing trend of companies measuring, tracking, and reporting supplier workforce and Board-level diversity as an additional – and scalable - value creation exercise.  

Launching a new supplier diversity program is a significant responsibility, one that can easily feel overwhelming if you are the person tapped to lead the effort. There are so many things to be done at once that setting priorities and ensuring no opportunities are overlooked is a serious challenge.