Converting Opportunities to Contracts: A Real Game Changer!

Blog 3 of the Supplier Diversity Rewired Series

The Challenge

The ultimate return on investment (ROI) for those dedicated to building a more diverse and inclusive supply chain lies in witnessing a growing number of underrepresented businesses securing contracts. This is the catalyst for economic growth and job creation within these communities, paving the way for a more equitable society. However, the question remains: Are we seeing more diverse businesses winning contracts??

In my two decades in this industry, I've consistently observed a frustrating gap between opportunities presented and contracts secured. This similar sentiment is echoed by supplier diversity leaders, advocacy networks, and diverse business owners alike. While we undoubtedly have the passion and commitment to achieve this, what we really need is to think outside the box and find innovative solutions that maximise our return on investment of time and resources, driving meaningful change. So, what can we all do to improve this conversion from an opportunity to a contract?

The Barriers

Let's first talk about some of the roadblocks that can get in the way of turning opportunities into contracts in the supplier diversity world.

• Ineffective Opportunity Sharing: Many opportunities shared by purchasing organisations lack sufficient detail, hindering both advocacy networks from identifying the right suppliers and diverse businesses from making informed decisions. This mismatch between supply and demand can lead to disappointment for all parties involved.
• Limited timeframes: In many cases, these opportunities are shared with the advocacy networks at the very last minute- almost as an afterthought, leaving insufficient time for market scanning and supplier-ready business identification.

• Traditional matchmaking process: We all have been to one of those ‘meet the buyer’ or ‘match-making events’ where an entrepreneur meets a corporate representative for an introductory 1-2-1 meeting. While managing one of the largest advocacy networks in the UK for over 18 years, I tried experimenting with various structures-? from traditional ‘meet the buyer’ open events to industry-specific ones, even experimenting with virtual ‘meet the supplier’ and virtual ‘matchmaking events’ events during the pandemic. While these events have their place, the biggest challenge has always been getting the actual decision-makers, the people with the budgets, to show up and meet with suppliers.

• Exhibiting at supplier diversity conferences: Sure, supplier diversity conferences are great for networking and showcasing products and services. But let's be real, the real payoff only comes from having buyers in attendance who are interested in that particular product or service.

• Bringing budget holders or end-users to meet diverse suppliers: Getting those key decision-makers, the ones with the budgets, to meet diverse suppliers can be a real challenge. Procurement teams are spread out globally, so it's almost impossible to get everyone together for conferences or events. For example, a company in Europe or the US looking for a UK marketing agency might not be able to attend in-person events here to choose the supplier that fits right.?

• Multiple databases: I consider the supplier diversity champion role as that of a talent scout. When they get wind of a new opportunity shared by a buyer or a budget holder, they have to sift through multiple advocacy networks and databases to find diverse businesses that fit the bill across different countries. It's like searching for a needle in a haystack, especially for smaller supplier diversity teams.

• Capability statements: Your capability statement is your business's first impression on potential buyers. You have to make sure it's polished and accurate to create a winning match between supply and demand. Unfortunately, a lot needs to be done by the advocacy networks as well as diverse businesses to get this right and standardised.?

The Solution

It is time to think of alternate/ innovative ways to improve conversion and drive more spend with diverse-owned businesses; Here are some of those solutions that we all can look into to make this happen:

• Better understanding of the demand and future pipeline: Supplier diversity teams should be included in annual planning meetings within each function to get a glimpse of upcoming purchasing plans. This information can be shared with advocacy networks, allowing them to identify and source suitable suppliers in advance.
• A better understanding of supply-side dynamics: Know your suppliers. Advocacy networks should try and educate suppliers to present an accurate capability statement. Leveraging technology and AI can provide purchasing organisations with a comprehensive overview of available suppliers.

• Bringing suppliers in front of budget holders: One of the most urgent and biggest challenges in supplier diversity is getting diverse businesses in front of the decision-makers with the budgets. A lot of groundwork needs to be done beforehand to ensure it’s a near-perfect match and to make this happen, we need to think outside the box. Here are some proposed ideas:

1. In-House Procurement Days: Host category-specific procurement days where diverse businesses can meet with budget holders from different departments within your organisation
2. Leverage Industry Conferences: Take diverse suppliers to meet budget holders. All around the year, various industry-specific events happen and that’s where stakeholders/ budget holders go to meet industry peers and suppliers. For instance, at the annual CWS (Contingent Workforce Solutions) conference, you'll find ample HR directors and budget holders responsible for managing a contingent workforce. Why not set up a "Diversity Corner" at this event to showcase diverse suppliers and connect them directly with these decision-makers?

• A single-access global database of diverse businesses: There is a growing demand from corporations for a centralised, easily accessible database that provides a comprehensive overview of diverse businesses worldwide. Such a platform would streamline the supplier discovery process and foster greater inclusivity in the supply chain. Creating such a database presents challenges related to data privacy regulations like GDPR and membership management. Nevertheless, it is imperative to explore innovative solutions leveraging the latest technological advancements.

• What gets measured gets done: To ensure effective implementation, supplier diversity targets and ownership should be integrated into the performance metrics of all relevant departments, not just procurement and supplier diversity teams. This shift will cultivate a more widespread commitment to inclusivity and drive tangible results.?

My purpose in writing this article was to take a hard look at current practices, identify barriers or shortcomings, and find innovative ‘outside the box’ solutions for us all to make a real difference. Every single player in this value chain that is committed to supply chain diversity and inclusion has a role to play in driving innovation in the corporate supply chain and creating wealth in under-represented, diverse communities. To me, inclusive procurement leads to inclusive growth. Let's all work together to make this happen.