ISD Supplier Diversity Reporting System is a tool that records and reports supplier diversity spend for Tier 1 and Tier 2 suppliers. It’s used to promote equal opportunity in the supply chain, as well as increase minority-owned business participation. The system works by assigning a unique identification number to each prospective diversity supplier.
Once they are qualified, they can then submit their spend amounts into the database and verify its accuracy. This way, companies can search through it, compare the dollars spent with diverse suppliers, and improve their spending and metrics in their supplier diversity program.
This way, companies can search through it, compare their spend with diverse suppliers, and improve their spending and metrics, strengthening their supplier diversity program.
The system ensures that companies are increasing their total dollars spent with diverse suppliers. It also provides additional reporting for the company’s supplier diversity program, including reports on minority business participation and vendor contract compliance.
This gives companies a better picture of how they’re doing in this area and helps them identify areas where improvement is needed.
It can be used to increase awareness about the benefits of having a diverse supplier base as well as demonstrating an organization’s commitment to supply chain inclusion while creating opportunities for underserved businesses.
As suppliers use ISD Supplier Diversity Reporting System more often, it will allow them to demonstrate progress over time which may lead to recognition from customers or potential new ones. This could result in increased sales, greater brand awareness, and more innovation.
The ISD Supplier Diversity Reporting System is a tool for minority business participation and vendor contract compliance. It is an online system that gives companies information about their supplier diversity, including how they’re doing in this area as well as any areas where improvement may be needed.
Suppliers use the software more often over time to demonstrate progress which could result in recognition from customers or potential new ones such as increased sales or brand awareness. This can lead to innovation and greater opportunities for underserved businesses. The goal of the Integrated Systems Design Supplier Diversity Reporting System is “to promote corporate commitment to supply chain inclusion while creating opportunities for underserved suppliers.
Additional goals of the supplier diversity reporting system include Tier 1, and Tier 2 spend reporting. Tier 1 reporting is the requirement for all suppliers to annually report their expenditure against the company’s total spend.
Tier II reporting is limited to companies with over $100 million in annual revenue and requires them to provide additional information on supplier diversity metrics such as the number of diverse vendors/contractors used or percentage spent with diverse enterprises.
Tier I Reporting: Suppliers must disclose how much they spend per year relative to a specified procurement category (e.g., transportation costs).
Tier II Reporting: Supplier Diversity Numbers – Additional requirements that apply only if a company has more than 100 million in annual revenues are described below:
Supplier Diversity Targets- All organizations are expected to set targets for spending at least 25% of it’s total spend across their diversity suppliers. This is measured by the percentage of contracts that are being awarded to diverse suppliers as well as specific dollar values spent with those firms per year. For example: “All organizations would be expected to establish goals for purchasing from Diversity Suppliers ranging from at least ten percent (minority) up to twenty five percent (women or veterans).”(US Department of Commerce). The Department also recommends measuring performance in other categories such as supplier diversity targets, outreach efforts, subcontracting plans and compliance reviews which can all help work towards these objectives.”
The supplier diversity reporting system is a way to track and report the progress of increased participation by minority, women-owned, veteran-owned businesses in all government contracting. The US Department of Commerce defines this as “increased reliance on small business enterprises owned by minorities; improved opportunities for employment and wealth creation among underrepresented populations through procurement preference.” (MBDA Federal Procurement Center)