Certification in Supplier Diversity Practice Exam

Which of the following is NOT a building block of a supplier diversity report?

1. Establishing a corporate policy

2. Identifying opportunities in strategic sourcing

3. Exclusively focusing on local suppliers

4. Establishing a continuous improvement plan

The correct answer is: Exclusively focusing on local suppliers

The choice that is identified as not being a building block of a supplier diversity report is focusing exclusively on local suppliers. While local sourcing can be an important component of a supplier diversity strategy, a comprehensive supplier diversity report aims to include a broad range of diverse suppliers, which includes various classifications and geographical locations. The essence of supplier diversity is to create an inclusive procurement environment that supports the engagement of suppliers from diverse backgrounds such as minority-owned, women-owned, veteran-owned, and other businesses that may not be local. By concentrating solely on local suppliers, a company could inadvertently limit its supplier pool and reduce potential opportunities for broader community impact and economic growth. Establishing a corporate policy, identifying opportunities in strategic sourcing, and establishing a continuous improvement plan are all fundamental building blocks of a robust supplier diversity report. These elements set the foundation for integrating diversity into procurement processes, identifying and leveraging strategic opportunities, and ensuring ongoing development and progress in supplier diversity initiatives.