”Supplier rationalization evokes thoughts of cost cutting and supplier cutting. But supply rationalization doesn’t have to mean reducing the number of suppliers, especially given what’s gone on over the last 18 months. In a lot of cases, companies have to reduce risk, and they doing that by increasing the number of suppliers. That’s another way to rationalize your supplier base. Rationalization is a continuous process, but diversity also needs to be a continuous process. You’ve got to have the ability to not just cut your supplier base, but de-risk your supplier base by adding suppliers and taking diversity into consideration as you go through that continual rationalization process.” –Sean Correll, Head of Public Sector at Ivalua
Supplier diversity programs offer access to innovation, new markets, and localized socioeconomic impact. And yet – despite all of these benefits – most public sector entities have yet to make a persuasive and actionable case for diversity.
There are several obstacles preventing governments from realizing the value potential and cost savings associated with supplier diversity. For instance, a preference for known suppliers and the complexity associated with onboarding new suppliers are just two barriers that limit the potential supplier pool.
As unprecedented levels of Federal funding become available, it is more important than ever that part of these resources are used to support diverse suppliers and build communities in alignment with federal and state stipulations.
Sean Correll, Head of Ivalua’s Public Sector team, and Jarrod McAdoo, Senior Product Marketing Manager at Ivalua recently joined Art of Procurement for an AOP Live session. In this podcast version of the event, host Philip Ideson asked Sean and Jarrod questions about:
- Making public sector supplier diversity discovery, onboarding, and management easier through fit-for-purpose digital procurement technologies
- The need for effective contract administration in response to new and changing regulations and legislation
- The advantage associated with making specific diversity spend commitments to incentivize municipalities and agencies to work with new suppliers and therefore drive innovation
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Links & Resources
- Sean Correll on LinkedIn
- Jarrod McAdoo on LinkedIn
- Emphasizing Speed and Transparency: NYC’s CPO on their Pandemic Response