Supplier Diversity Certification

What does the term "certification" mean when referring to diverse businesses (minority, woman, small and disadvantaged)?
Certification is a validation process by a 3rd party certifying agency that ensures a business is actually owned, controlled, and operated by the diverse applicant (minorities, women, small and disadvantaged).  This due diligence ensures only those businesses that meet the strict eligibility requirements of the program are certified.  Some 3rd party certifiers include NMSDC, WBENC and the SBA.

Is my company eligible for certification?
Business owners must meet certain criteria in order to become certified. There are basic guidelines and requirements common to many certification programs; however each certifying agency may have additional or different criteria. Some of the basic requirements for minority and/or women business owner certifications are as follows:

• The business is 51% or greater owned and controlled by one or more minorities or women. The applicant(s) must be able to show that the history of company management and daily business operations are controlled by one or more minorities or women.
  
  
• The term "minority" refers to ethnic minority of either gender of the following categories: African American, Hispanic American, Native American, Asian-Pacific American and Asian-Indian American.
  
  
• Business owners must be a U.S. Citizen however some certification agencies will accept Legal Resident Alien status.

Small Business Administration (SBA) certifications including 8(a), Small Disadvantaged Businesses (SDB) and Historically Underutilized Businesses (HUBZone) have other criteria that must be met. Please refer to www.sba.gov for a full description of the certification programs and the eligibility requirements.

What are the different types of certifications available?
Certifications are available for minorities, women, disadvantaged, disabled veterans, small businesses and HUBZone. Some of the common certification programs are briefly described below.

• WBENC (Women's Business Enterprise National Council) and NMSDC (National Minority Supplier Development Council) certify women and minorities, respectively. These certifications are accepted by the private sector, including many Fortune 500 companies.
  
  
• SBA certifications such as 8(a) and SDB certify socially and economically disadvantaged business owner(s). HUBZone certification is for those businesses located in "Historically Underutilized Business Zones". To find out if your business qualifies as a HUBZone Enterprise please go to www.sba.gov and access HUBZone under SBA Programs. These certifications are accepted by federal government agencies and government primes.
  
  
• The Supplier Clearinghouse certifies businesses that are owned and operated by women (WBE), minorities (MBE) and minority women (WMBE). This certification is specifically for those diverse businesses who are interested in doing business with California Public Utility companies. Applications and list of participating utility companies can be found at www.asianinc.org. Click on Supplier Clearinghouse on the navigation bar.
  
  
• Some local and state governments have their own MBE, WBE and small business certifications. Please check the web sites of your local and state governments for information.

What are the benefits of becoming certified?
The following are some ways a diverse business can benefit from becoming certified.

• Access to corporate contacts
  
  
• Access to contract opportunities within the private and public sectors who are seeking certified suppliers
  
  
• Increased visibility
  
  
• Access to networking events and opportunities
  
  
• Resources, educational programs and training to grow your business
  
  
• Strengthens relationships with your customers who have supplier diversity programs
  
  
• Can be a competitive difference when bidding on contracts against non-certified competitors.

How long will the certification process take?
The certification process can range from 30-90 days once the application is submitted to the certification agency. The length of time varies and is dependent upon the certification agency and if additional documentation is needed in order to complete the application process. Although each certification application includes a checklist of required documents, occasionally certifying agencies will require explanations or additional documents in order to complete the application review process. This is usually based on the complexity of the ownership and/or management of the applicant company.

How can Sarah Lyu Consulting help my diverse business?
Sarah Lyu Consulting has the know-how and connections to navigate the certification process. We guide you through the entire process from preparing the application for submission to successfully leveraging your certification once you are certified.

Supplier Diversity Programs

What is supplier diversity?
Supplier diversity is the proactive business process of sourcing products and services from diverse business owners. These processes promote the inclusion of diverse suppliers into the supply chain to develop new sources of supply for all types of products and services. It is a key business strategy and a sustainable process.

Why supplier diversity?
Supplier diversity contributes to the bottom line and makes a difference to the financial performance of the company.

• Customer Satisfaction - strengthens relationships with your customers by helping them meet their supplier diversity targets.
  
  
• Future Growth - supplier diversity excellence will result in a competitive advantage; continued change in demographics will shift where opportunities exist; and supplier diversity supports company image and branding.
  
  
• Diverse suppliers make an impact - often provide lower costs and higher quality; have greater flexibility in customer needs; and increasingly have the size, scope and experience to meet global requirements