Supplier Diversity

Our Supplier Diversity Goal

Our Goal is to promote successful relationships between America’s top corporations – public, private and internationally owned – as well as universities, hospitals and other institutions; and supply-chain partners from the Asian Indian and other minority communities.

Unwavering commitment to advancing certification of minority owned business enterprises and connect them to corporate members as critical partners in a globalized corporate supply chain.

What is Supplier Diversity?

In general, supplier diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. It emphasizes the creation of a diverse supply chain that works to secure the inclusion of diverse groups in the procurement plans for government, not-for-profits and private industry.

In other words, supplier diversity refers to a supply chain that incorporates businesses owned by diverse individuals or groups.

Who is a Diverse Supplier?

A diverse supplier is, in the broadest sense, a business owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group. In the United States, there are approximately 16 categories used to identify

Diverse businesses. Common examples are:

In order for an organization to record and report diverse supplier spend, it is important to ensure that its suppliers are certified through third-party certification agencies.

Entities such as the Women’s Business Enterprise National Council (WBENC), the National Minority Supplier Diversity Council (NMSDC), the National LGBT Chamber of Commerce (NGLCC), and the U.S. Department of Veterans Affairs Vets First Verification Program focus on ensuring that businesses are appropriately categorized by offering nationally recognized third-party certification services. Regional councils and state and local governments also offer certification services.

Why is Certification Important?

Programs seeking diverse suppliers are becoming more content to do the legwork themselves to find new suppliers. Certification agencies remain the top channel thus cementing the importance of diverse suppliers achieving certification with appropriate agencies

Certification is the best avenue for diverse businesses to draw the attention of supplier diversity programs. This is also important because programs want to minimize the risk of minority false-positives through agency certification.

Diverse certification is an important milestone in the life of a supplier because it authenticates that the business is owned, managed, and controlled by a qualifying diverse group. Certification also opens the door for opportunities to contract with the federal government, which has a mandate to increase the number of diverse suppliers within an organization’s supply chain.

What is your MBE - DNA?

Which Industry Group do you belong to?

The Top Ten Industry Groups among NMSDC-certified MBEs are:

Professional, Scientific & Technical Services (33%)
Manufacturing (13%)
Construction (13%)
Wholesale Trade (11%)
Administration and Support, Waste Management and Remediation Services (11%)
Transportation and Warehousing (4%)
Information (3%)
Retail Trade (2%)
Real estate, Rental and Leasing (2%)
Finance and Insurance (2%)

What is more appropriate – a Tier 1 or Tier 2 supplier?

Tier 1 suppliers are the business partners who directly provide goods and services to the parent company. Tier 1 refers to a direct relationship. Tier 2 suppliers are the vendors your Tier 1 suppliers contract—think of this as your supplier’s suppliers.

Are you an Emerging Young Entrepreneur?

Are you a Millennial entrepreneur, who is at a conception or emerging phase of business ownership and is working towards developing a sustainable business and/or maximizing business growth opportunities.

How does AICC Develop MBEs?

Specifically, the chamber plans to offer the following programs during 2022 and beyond:

Certification – AICC will partner with NJSBDC (New Jersey Small Business Development Corporation), NMSDC (NY & NJ Minority Supplier Development Council), PANYNJ (Port Authority of NY&NJ) and other certifying agencies that offer training and certification for small businesses

Industry Education – Bring awareness to meeting qualification requirements including industry expertise, innovation of services/products/goods, the capability needed to deliver, competitiveness, sound financial standing and operational and safety standards.

Networking Events – Organize Networking and Matchmaking events, Business Forums, “how to do business” workshops to learn how to participate, gain experience, learn the nomenclature and variance of degrees of supplier diversity, and how to prepare to do business effectively.

Hosting Specific Events – AICC will be involved with supplier diversity programs with major corporations that call NJ home and will host specific events, such as a half-day seminar about the company’s procurement process and upcoming opportunities, for relevant suppliers.

A Compelling case for Supplier Diversity

Corporations benefit directly from minority supplier development programs Their markets expand. The pool of qualified suppliers/contractors grows. Costs are reduced. Quality increases across products and services, with greater competition.

They encourage innovation and increase competition between suppliers, ensuring that contractors receive the best value at the best possible price. Supplier diversity programs have also been shown to give their creators a competitive advantage in minority-dominated markets and boost overall brand loyalty and perception—all of which impact a company’s bottom line. As more companies recognize the value of supplier diversity, many top-performing international businesses have adopted supplier diversity programs and publicly advertised their commitment to supplier diversity as a means of evolving their brand identity.

Diverse firms tend to be smaller firms. They must operate with an entrepreneurial fervor to survive and thrive. They must anticipate and respond fast. If you are able to identify and help bring along these truly innovative diverse firms into your supply chain, undoubtedly your operations will benefit by the enthusiasm they bring, not to mention any new ideas, expertise and inventions for improving processes.

This is where ROI adopts an enhanced meaning for supplier diversity that is not limited to cost reduction and regulations compliance. Top performers in supplier diversity unlock opportunities to access new markets and improve supplier relationships.

On average, supplier diversity programs add $3.6 million to the bottom line for every $1 million in procurement operation costs,” writes Lindsey Clark, referencing a 2015 study by the Hackett Group. “The high return on investment is undeniable … A positive ROI that boosts socially conscious reputation should push supplier diversity to the forefront of business strategy.”