The leadership of an organization plays a key role in the success of supplier diversity spend tracking by defining the vision, obtaining resources, driving buy-in across other departments and teams, and fostering accountability across the organization. 

The leadership of an agency (or contract owner) decides what Disadvantaged, Small, Minority, Veteran, or Woman-Owned Business Enterprises (DSMWVBE) programs are appropriate for their organization.

From a spend tracking perspective, leaders need to see the big picture of all contractors, subcontractors, and suppliers who are hired for a specific contract and how much of the budget is allocated across them. What percentage of spend is going to small and diverse businesses? Are they meeting their supplier diversity goals? If not, where is the gap, and how can they fix it? Ultimately, their role is to be responsible for the overall reputation of the agency, meeting all regulations for contracts and supplier participation, and directing how the budget is being spent. 

Organizations that leverage supplier diversity tracking tools like B2Gnow ensure accuracy, transparency, and efficiency at every step.

B2Gnow offers three different types of spend and utilization tracking modules in the B2Gnow system – from tier 1 to tier x – allowing organizations to effortlessly monitor, track, and report supplier diversity spend while maintaining critical supplier diversity compliance according to federal, state, and local requirements.

Diversity spend tracking can have huge implications for the relationship between agencies/prime contractors and suppliers. Supplier diversity spend tracking allows agencies and Primes to see when and how suppliers are being paid.

Suppliers need to have confidence that primes and subcontractors will pay them on time and accurately. If there are late payments, there can be penalties as well as loss of reputation.

Also, suppliers unsatisfied with a Prime’s payment allocations won’t want to work with that Prime again. A diversity spend solution, such as B2Gnow, can eliminate any confusion over supplier and spend allocation, keeping spending on track.

From states to state DOTs, cities, counties, transits, airports, education, general contractors, healthcare, and more – B2Gnow supports organizations to manage vendor certifications, track small and diverse vendor utilization, and generate reports for program compliance and results.

Most organizations leveraging B2Gnow save up to 60%-80% of time spent on administrative tasks, freeing up time for endeavors that make a bigger difference in the communities they serve.

The goal of most DSMWVBE programs is to help small and historically disadvantaged businesses gain opportunities they might not normally have. Publicly funded projects are a great way for small and diverse businesses to participate.

Monitoring the funds that are allocated and spent on all suppliers across the project, including small and diverse businesses, can support agencies and primes to remain compliant and meet their program goals.

With a diversity spend solution, agencies and prime contractors can eliminate fines and other penalties that are consequences of non-compliance.

B2Gnow provides transparency, accuracy, and timeliness in supplier diversity spend tracking.

Small and diverse businesses benefit from supplier diversity spend tracking in several ways.

Supplier Diversity Spend tracking provides small and diverse firms with increased visibility, credibility, and an opportunity to participate in contracts with agencies committed to equitable contracting and fostering diversity and inclusion.

When an agency prioritizes diverse business contracting and supplier diversity spend tracking, the result is an engaged and growing small and diverse business vendor community, which drives lasting economic impact and success across communities. 

Promoting public projects, hiring small and diverse businesses, and working to provide fair opportunities creates a culture that values diversity.

Public agencies are where public project contracts begin, the tip of the pyramid, so to speak.

Ensuring these contracts include small and diverse businesses is critical to future funding.

Spend tracking is the checks and balances part of contract management. When small and diverse businesses are brought into public projects, they contribute more to their local community and economy. 

Identifying and engaging with small and diverse certified vendors can be tedious for estimators and project managers as they search multiple certification directories, manually send emails, and log the outreach efforts required to generate any required Good Faith Effort (GFE) reports.

Diversity regulations created by federal, state, and local governments can be complex and evolving, requiring ongoing effort to maintain compliance. Finding small and diverse certified vendors that meet project requirements can also be difficult as the potential subcontractors must provide evidence that their certifications are current and applicable to the necessary work, that they meet the prime’s qualifications, and are available to work on the project. Certified vendor sourcing software automates these processes and saves time. 

Another primary challenge is identifying reliable suppliers. Many vendors may not meet quality standards or deliver on time. Prime Contractors often face challenges in negotiating favorable terms and prices, especially in competitive markets.

Additionally, managing communication and relationships with multiple vendors, can lead to misunderstandings and conflicts. Compliance with regulations and maintaining quality control across various suppliers can be difficult in highly regulated industries without a comprehensive certified vendor management software.

Data analytics plays a critical role in enhancing supplier diversity spend tracking by providing key data and insights, increasing visibility, and supporting agencies and primes to reach their M/W/DBE program goals. 

For example, by leveraging analytics, agencies and primes can spot gaps and pinpoint areas for diverse business utilization improvement. Furthermore, data analytics in supplier diversity spend tracking can help agencies and primes to efficiently track compliance and program goals, ensuring they meet both internal goals and external regulatory requirements.

Additionally, analytics in supplier diversity spend tracking can improve transparency to key stakeholders, drive strategic decision-making, quantify the broader economic impact of supplier diversity initiatives, and propel further investment in supplier diversity programs. 

Agencies can align supplier diversity spend tracking with overall organization objectives by critically focusing on six key areas. 

First, an organization should establish supplier diversity program goals that tie directly into the organization’s larger goals, such as diversity and inclusion and economic development. 

Second, it’s crucial that an organization secure buy-in from senior leaders and equip staff with program knowledge to actively promote and collaborate on supplier diversity initiatives.

Third, an organization should leverage data analytics and adopt a robust supplier diversity software solution like B2Gnow to effectively outreach to small and diverse vendor communities, as well as manage vendor certifications, track small and diverse vendor utilization, and generate reports for program compliance and results.

Lastly, agencies and prime contractors can align supplier diversity spend tracking with overall organizational objectives by promoting, educating, and communicating the benefits of a supplier diversity program.

By linking supplier diversity spend tracking to goals such as cost reduction, risk mitigation, and innovation, agencies and primes can strengthen diversity and inclusion efforts while also enhancing their community impact.

Agencies can encourage supplier diversity beyond spend tracking by fostering supplier development, creating inclusive procurement policies, and engaging in the community.

For example, agenices can encourage small and diverse businesses to compete in public projects by hosting supplier diversity workshops and fiars, promoting new contracted projects on their websites, and they can leverage technology solutions like B2Gnow Supplier Diversity software to better engage and grow their small and diverse vendor community through automated outreach campaigns and email blasts.

Further, agencies and primes who leverage B2Gnow supplier diversity spend tracking gain access to Gain the industry’s largest real-time database of certified suppliers.

Agencies can also develop relationships and spread the word through organizations such as Women’s Business Enterprise National Council (WBENC), Small Business Diversity Network (SBDN), Minority Business Development Agency (MBDA), National Minority Supplier Development Council (NMSDC), and U.S. Small Business Administration (SBA).

Supplier diversity spend tracking offers significant financial benefits by growing the vendor community and encouraging competition, which often leads to financial savings and innovation.

Furthermore, a growing pool of vendors will bring new ideas and efficiencies that result in more competitive pricing and enhanced procurement options. Beyond cost savings, a commitment to equitable contracting and supplier diversity spend tracking can boost an organization’s reputation and appeal to stakeholders who value diversity and inclusion.

In the long run, investing in small and diverse business utilization contributes to job growth and economic stability in underserved communities, indirectly supporting the organization’s own sustainable growth and long-term success.