Audrey Kelley, Emory University
RGMA’s Five Levels of
Supplier Diversity Program Development
1
Beginning
Program
2
Basic
Program
3
Traditional
Program
5
4
Advanced
Process
World Class
Process
©Ralph G. Moore & Associates Inc. 2008
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 2
RGMA’s Five Levels of
Supplier Diversity Program Development
Level 1: Beginning Program
• Community affairs own program
• Sparse tracking
• Nonexistent outreach
• Fails to attend trade fairs
• No program materials
• Minorities in ads, but not in supply chain
• Senior management doesn’t “get it”
1
Beginning
Program
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 3
RGMA’s Five Levels of
Supplier Diversity Program Development
2
Basic
Program
Beginning
Program
Level 2: Basic Program
• Part-time program manager
• Compliance driven response to customer requirements
• Tracking focused on customer reporting
• Trade fair participation is a photo opportunity for key customers
• Perception exists that program is an expense rather than an asset
• Senior management still not engaged in the process
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 4
RGMA’s Five Levels of
Supplier Diversity Program Development
3
Traditional
Program
Basic
Program
Beginning
Program
Level 3: Traditional Program
• Active Program Manager
• Local/national advocacy memberships
• Limited connection to strategic sourcing
• No significant link to marketing and brand strategy
• Reporting hampered by inadequate technology
• Few professional services opportunities
• Loosely-structured Second Tier program
• Some program materials
• Little Senior Management involvement
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 5
RGMA’s Five Levels of
Supplier Diversity Program Development
4
Advanced
Process
Traditional
Program
Basic
Program
Beginning
Program
Level 4: Advanced Process
• Process manager at director level
• Active local/national advocacy (NMSDC)
• Program has sufficient resources
• Strong team of supplier diversity professionals
• Buyer and key executive training
• Advanced Second Tier program
• Supplier diversity program management technology
• Steering committee comprised of key executives
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 6
RGMA’s Five Levels of
Supplier Diversity Program Development
4
Advanced
Process
Traditional
Program
Basic
Program
Beginning
Program
Level 4: Advanced Process
(continued)
• Professional service and outsourcing opportunities
• Innovative diverse supplier development initiatives
• Aligned with marketing and sales
• Process aligned with strategic sourcing
• Involved CEO/Senior Management
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 7
RGMA’s Five Levels of
Supplier Diversity Program Development
5
World Class
Process
Advanced
Process
Traditional
Program
Basic
Program
Beginning
Program
Level 5: World Class Process
• Program manager viewed as key resource to senior management
• Supplier diversity process equal in stature to workforce diversity
• Process owned by sourcing teams and buyers
• Accountability throughout organization
• Program management tools utilized throughout the organization
• Innovative tools such as alliances and acquisitions drive program growth
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 8
RGMA’s Five Levels of
Supplier Diversity Program Development
5
World Class
Process
Advanced
Process
Traditional
Program
Level 5: World Class Process
(continued)
• E-sourcing used to expand diverse spending
• Measures contribution to market share and shareholders’ equity
• Integrated into global strategy
• Senior Management Leadership
Basic
Program
Beginning
Program
NAEP Supplier Diversity Institute l Chicago, IL l August 4 – 5, 2014 ©Ralph G. Moore & Associates Inc. 2008 9