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CVM Supplier Diversity Blog

How Data Enrichment Leads to Successful Supplier Diversity Programs

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Your successful supplier diversity program requires accurate, relevant data to ensure not only the integrity of reporting but the strength and quality of the program. Industry best practices advise regular data cleansing and data enrichment to ensure quality, up-to-date data.

A data enrichment service transforms your supplier data into supplier intelligence by giving you the tools to build and grow your supplier diversity program while saving time and money.

  • Clean up your data. The first step of the data enrichment process is to cleanse and standardize your supplier input file. This will identify duplicate suppliers, consolidate vendor information, standardize company names and addresses, and complete missing data such as contact information, telephone numbers, tax IDs, revenue, number of employees, etc. This automated process results in real savings of time and money versus manual auditing. And when your data is accurate, you avoid rework and wasted time and resources.

  • Gain an accurate picture of your supplier diversity program. Reliable data gives you detailed information into your diverse supply chain beyond spend metrics. Enriched data also provides confidence and accuracy to your spend reports and ensures that diversity certifications are not expired. You’ll gain insight into your global supplier information by geographical focus, enabling you to identify your top suppliers by record count or spend distribution based on country, continent and categories. Classifying and understanding parent-child family linkages will allow you to leverage your spend for more favorable contract terms. Data enrichment provides greater visibility into supplier dependencies so you can make more informed decisions about your supplier relationships.

  • Set realistic goals, then measure your success. Once you have accurate data and a clear picture of your current supplier diversity metrics, you are ready to develop goals that tie in to your organization’s business drivers and increase shareholder value. Using detailed reports and relevant data, your supplier diversity team can increase executive buy-in and commitment by going beyond typical metrics and linking to business strategy in bottom-line terms.

  • Grow your supplier diversity program with vendors already in your supply chain. Use data enrichment to identify diverse suppliers you're already doing business with, instantly increasing your diverse supplier base. You can then position these suppliers for growth and development in other areas of your organization.

  • Verify the certification status of your diverse suppliers. To ensure accurate reporting, you must verify and monitor diversity status. Ownership changes, mergers and updates to certification status can negatively impact your supplier diversity program. Data enrichment services audit and monitor diverse businesses against third-party certification sources to ensure accuracy and maintain the integrity of your diverse spend.

  • Mitigate risks. Use data enrichment to diagnose and mitigate potential risks before they disrupt your business. Detailed reports identify your top suppliers by spend so you can recognize and reduce supplier dependency before it causes an interruption in your supply chain. Alternatively, a report may reveal an opportunity to increase spend with suppliers with deteriorating revenue to ensure their economic success and the quality of your supply chain.

  • Develop supplier relationships. Your suppliers are integral to the success of your company; treat them like a vital part of the team by building relationships that ensure mutual long-term success. Accurate data can help you monitor your diverse suppliers and determine the best opportunities for supplier development; identify diverse suppliers who have not yet obtained certification and work with them to do so; spot risk factors before they become insurmountable; and increase your organization's diverse utilization through regular supplier data enrichment projects.

Reliable data is the key to a successful supplier diversity program. Through data enrichment, your supplier data becomes supplier intelligence, providing you with the information you need to build, grow and strengthen your supplier diversity program.

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For over a decade CVM's mission has remained unchanged: lead the transformation of Supplier Diversity program management and support Supplier Diversity programs. CVM helps corporate supplier diversity programs in every stage of their evolution; from those that are just getting started, to the most advanced, world-class programs. Equipped with unparalleled data intelligence, superior technology and expertise guidance, businesses can effectively establish and advance their Supplier Diversity initiatives.