The State of Supplier Diversity in Higher Education

Northeastern University | College of Professional Studies

Carl Zangerl | Ali Raisi | Youngbok Ryu | Francesca Grippa

For procurement professionals in higher education, balancing multiple priorities, often with limited resources, has always been challenging. Add to the mix the goal of promoting supplier diversity! While the institutional commitment to increasing the pool of suppliers is high, the results have been underwhelming. Why is this so?

Our previous research reports explored the aspirations and frustrations of diverse small enterprises interested in doing business with colleges and universities. We learned that the higher education procurement process often seems to them like an impenetrable black box, which discourages suppliers, particularly disadvantaged vendors, from entering the market. One small business owner summed up his experience this way: “It’s hard even to know where to start in terms of relationship building and understanding what contracting opportunities might be available.” 

But what about the other side of the buying equation? What are the perceptions of the professionals responsible for strategic sourcing and making purchasing decisions? It was time to gauge the sentiments of procurement experts from diverse institutions nationwide. By probing their views and experiences through a large survey and focus groups, we aimed to
improve our understanding of the institutional purchasing landscape. Is there a gap between the commitment to supplier diversity and the programs required to make it happen? What practical steps can be taken to make significant progress? How can lifelong learning contribute to the promotion of supplier diversity? And what can diverse suppliers do to gain more access to the higher education marketplace?

The survey was completed by 101 procurement professionals representing a wide range of institutions, private and public, large and small, research intensive and teaching-oriented. While the respondents were primarily concentrated in New England, the sample was nationwide and included senior managers and more junior buyers. For details about the respondent profile, see the section on research methodology. We followed up the survey with three focus group sessions to drill deeper into the issues that emerged from the survey. The focus groups also included procurement professionals from a range of institutions - public and private universities, large universities, and small colleges - carefully chosen to reflect the diversity within higher education.

What we learned from the survey and the focus groups can be summarized around five themes:

Commitment vs Implementation: Many respondents voted a disparity between the stated commitments to supplier diversity and the actual practices within institutions.
 
Obstacles: The survey responses and focus group discussions identified a range of obstacles to increased supplier diversity, including resource limitations, identifying qualified diverse suppliers, complex procurement processes, and existing vendor relationships.

Strategic Initiatives: Some institutions are making significant progress in increasing the pool of diverse suppliers by implementing various strategic and tactical approaches.

Training Opportunities: There are significant awareness and training gaps among internal stakeholders, from procurement staff to P-Card holders, on engaging with diverse suppliers more effectively.

Capacity Building: The experience of working with diverse suppliers has been generally very positive, with suggestions on how they can compete for business more effectively.

Supplier diversity in higher education shows overall progress alongside significant challenges. This report explores these obstacles, highlights best practices identified by respondents, and proposes practical strategies to advance supplier diversity within the sector.

The National Association of Educational Procurement (NAEP) and the Northeastern Lab for Inclusive Entrepreneurship announced plans to collaborate on a range of research and educational initiatives in support of supplier diversity in higher education. 

Building on the research conducted by the Lab on ways to expand access for diverse small businesses to the higher education marketplace, the organizations will explore additional areas of research of interest to NAEP member institutions. 

NAEP and the Lab will also work together to develop educational resources for both procurement professionals in colleges and universities and diverse small business owners that leverage each organization’s unique programmatic attributes.   

“Our collaboration with NAEP reflects a shared commitment to equitable and sustainable procurement practices in higher education, which is a driver of economic growth in our local communities,” said Francesca Grippa, Executive Director of the Lab. 

NAEP CEO Brad Pryba said “It’s a great pleasure to be able to highlight the impactful academic work taking place at our member institutions coupled with the excellence of their procurement teams.  It’s my hope that NAEP’s collaboration with Northeastern can serve as a model for how to bridge the gap between academicians and procurement professionals at our member institutions and bring valuable insights and practices to the procurement community.” 

The collaboration between the National Association of Educational Procurement (NAEP) and the Northeastern Lab for Inclusive Entrepreneurship marks a significant step forward in promoting supplier diversity and equitable procurement practices within higher education. Through joint research initiatives and the development of educational resources, both organizations are committed to fostering an inclusive environment that supports the growth of diverse small businesses and benefits local communities. As this partnership continues to evolve, stay tuned for more updates on our progress and the impact of our collaborative efforts. More to come! 

Communicating Your Value:

• Speak the Language of Business: Translate procurement jargon into the language of business. When communicating with stakeholders, focus on how procurement activities directly contribute to institutional objectives such as cost reduction, risk mitigation, and innovation.
  

• Highlight Cost Savings: Showcase the cost savings and value generated through strategic sourcing initiatives, negotiation tactics, and supplier relationship management. Quantify these savings whenever possible to demonstrate the tangible impact of procurement on the institutions financial performance.
  

• Emphasize Risk Management: Emphasize the role of procurement in mitigating risks related to supply chain disruptions, supplier quality issues, and compliance failures. Highlight how proactive risk management strategies safeguard the institution's reputation and continuity of operations.
  

• Showcase Supplier Partnerships: Spotlight successful supplier partnerships and collaborations that have led to improved product quality, innovation, and competitive advantage. Illustrate how strong supplier relationships contribute to long-term value creation for the institution.

Making an Impact:

• Drive Strategic Alignment: Align procurement strategies with institutional goals and objectives. Collaborate with cross-functional teams to ensure procurement initiatives are integrated seamlessly into broader business strategies.
  
  

• Enable Innovation: Foster a culture of innovation within procurement by exploring new sourcing strategies, technologies, and market trends. Champion initiatives that promote supplier diversity, sustainability, and social responsibility to drive innovation and create shared value.
  

• Optimize Processes: Continuously evaluate and optimize procurement processes to enhance efficiency, reduce cycle times, and minimize costs. Leverage automation, data analytics, and digital tools to streamline workflows and improve decision-making.
  
  
• Empower Stakeholder Relationships: Cultivate strong relationships with internal stakeholders, including finance, operations, and marketing, to gain insights into their needs and priorities. Proactively engage stakeholders in the procurement process to foster collaboration and drive mutual success.
  
  

As procurement professionals, each of you has the power to drive positive change and make a meaningful impact within your institution. Seize the opportunity during Procurement Month to elevate your communication skills, showcase your value proposition, and inspire others to recognize the strategic importance of procurement in achieving institutional success.

Our Year in 2023 

2023 was an exciting year for NAEP.  After a transitional period, the organization has emerged stronger than ever and is encouraged by what we were able to accomplish last year.  Our staff grew, and we added new capabilities in the executive and business development roles to build on our already strong operational and membership teams.   

Our annual meeting in Florida hosted over 745 attendees, reuniting members with their peers while engaging with stellar programming and enjoyable networking events.  We expect the NAEP Annual conference, now called EPIC, to be an even stronger event this year, and look forward to seeing many of you in National Harbor in March.   

Our membership has grown to 705 institutions, all of which see the value in our organization and offerings. These include our partnership with NASPO to bring our members free access to the Procurement U offerings and courses.  Our district and regional meetings continued to be a source of success where over 890 attendees and 200 companies engaged for the betterment of the higher education procurement profession.  The Board embarked on a new strategic plan to align our organization and members. By leveraging the collective power of our regions, we ensured top quality programming nationwide. Our business partner opportunities grew with a broader scope and a national footprint. Our staff support and resources increased to ensure volunteers get to focus on deriving value from their experience and not managing logistics.  Lastly, we were able to bring our members even closer together with the launch of Circle, our community platform.   

So, what can members expect for 2024?

NAEP is looking for volunteers interested in serving on the following Member Committees:

Diversity & Inclusion Committee

NAEP is committed to developing and maintaining a culture within the association that helps members embrace diversity and inclusion throughout their institutions. The Diversity and Inclusion Committee is charged with championing these initiatives for NAEP Members, including professional development opportunities, resources, and systems that encourage and increase diversity and inclusion of the Member’s workforce, student body, and suppliers.

Education Committee

The Education Committee (EC)’s primary charge is the strategic direction of delivering relevant, quality and diverse educational opportunities in higher education procurement and related subjects across a variety of educational platforms and modern delivery models. The EC provides long-term education goals and objectives that connect with the strategic plan.

As an NAEP Committee Member, you will make a difference!

NAEP is looking for a diverse and inclusive set of volunteers who have the skills and experience to support their Committee's charges and are passionate about advancing their Committee's strategic goals and objectives in support of the higher education procurement profession.  As an NAEP Committee member, you shall serve a 10-month term.  Committee members can volunteer for subsequent terms after their initial term of service but shall serve for no more than three consecutive terms.

For additional information on Committee service, see NAEP's Member Committees: Guide for Volunteers and Leaders.  

How can I be considered for Committee Service?

If you would like to volunteer, complete and submit the Call for Volunteers on NAEP's website. The 2020 Call for Volunteers will be open from June 30th through July 17th.

Questions?

Please contact us at naepadmin@naepnet.org.

As an individual, you can make a tax deductible donation to the NAEP Scholarship Funds (where allowable by law). 

100% of your individual donation will support the William E. Haas Scholarship, the Nancy Tregoe Scholarship, and the Sons & Daughters Scholarship funds. Receipients of these yearly awards use the funds to further their educational goal by attending NAEP academies, institutes and meetings or in the case of the Sons & Daughters Scholarship, attending college or trade school. Upon donations, you will receive a letter of receipt for tax purposes.

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