If you’re exploring the benefits of increasing your annual spend with diverse suppliers, where do you start?
One word: Data.
Data, and how good that data is, is arguably one of the key pillars of a successful supplier diversity program. If your data is inaccurate or messy everything will suffer.
You likely miss your diversity goals, account for diverse spend that shouldn’t be, miss a chance to showcase additional diverse spend your organization has influenced. You’ll also waste your time and resources, miss an opportunity to demonstrate value and economic impact to your community, as well as deal with potential repercussions for federal funding repayment, and the list goes on…and on.
The good news is that there are tools and approaches that organizations can adopt to improve the integrity of their data, how they view and report on that data, and ultimately positively influence the success of their supplier diversity program and the communities they serve:
Move to Digital
If you’re sacrificing hours upon hours of manually sifting through the data, living in spreadsheets or toggling between several different tools or directories, chances are there are more than a few data errors that you’d feel comfortable to admit. If this sounds familiar, it may be a sign it’s time to go digital and leverage the power of a diversity software system that automates many of these tedious, manual processes. A robust diversity software system, like B2Gnow, automates and streamlines time-consuming data processes with a click-of-a-button. In turn drastically increasing data accuracy as well as reducing time and effort necessary to successfully manage a diversity program. Oftentimes the result is that organizations are saving 60%-80% of time spent on administrative and clerical activities, while at the same time enhancing impact and reach.
Invest in Data Match and Enrichment
How confident are you that you have the latest, most accurate information on your suppliers? Could it be out of date? Who is even verifying the information is correct? Bottom line is, if your supplier data is not accurate, your diverse business spend is probably flat-out wrong. Many leading organizations have seen the writing on the wall when it comes to the importance of the latest, most accurate supplier data and have turned to diversity software systems for their comprehensive and trusted data scrub and data enrichment services. B2Gnow diversity management software hosts the largest certified diverse business database in the world – from directories to local and state certifying agencies – to match all listed vendors to the certifications available for such vendors. In addition, the company enriches the data by providing additional information for each matched vendor. The result is the rapid ability to qualify and quantify your current supplier data to maximize current goals. No more redundant or inaccurate data.
Go Deeper with Spend Analysis
Various organizations, such as private companies, school districts and higher education agencies have unique needs when it comes to data and how they are tracking spend. For instance, many spend a significant amount of money on purchase orders or credit cards across a large number of vendors. The issue is that this data on potential diverse business spend is lost when these dollars aren’t tracked and attributed. Software like B2Gnow’s Spend Analysis module allows organizations to quickly and easily capture and report on this important diverse spend data across their credit card and purchase order expenditures. The payment data is merged with B2Gnow’s extensive recognized certification and registry data, resulting in a complete spend analysis that allows the spend data to be visualized and utilized to granularly evaluate diverse supplier programs.
Maximize with Tier 2 Reporting
You’re likely already familiar with capturing tier 1 spend (direct spend), either manually or through a software system. To clarify, these tier 1 suppliers are those you are directly contracting with to provide your organization with goods or services. In fact, you may have hundreds or even thousands of tier 1 suppliers that are the foundation of your supplier diversity program. However, if your organization is looking to truly grow, you need to ensure you are capturing and reporting on tier 2 spend (indirect spend) as well. Further explained, it is your tier 2 suppliers who are the vendors to your vendors. While it’s pivotal for your organization’s growth to include tier 2 spend, the problem is that it’s no easy task to collect and report on tier 2 spend. The good news is that diversity software organizations, like B2Gnow, not only seamlessly track tier 1, but they also track all payments made by tier 1 vendors to their designated tier 2 diverse suppliers – which includes both direct and indirect payments. The tier 2 supplier diversity program payment data is then compiled, rolled up and made available to the organization with powerful analytics and reports.
Ready to get a handle on your data and grow your supplier diversity program?
Say goodbye to tedious, manual processes, and go deeper into your data. Benefit from a robust supplier diversity software solution that streamlines and automates data-gathering, tracking, reporting, vendor management, and administrative processes, resulting in a significant reduction in staff time and cost – allowing you to focus on meeting diversity goals, not on chasing paper. Learn more about B2Gnow and request a demo.