Mastering the Supply Chain

Among the biggest threats to the survival and growth of minority and women’s business enterprises are supplier consolidation and outsourcing. Although supplier diversity programs have greatly increased in number and have become more organized in recent years, many corporations have reduced their number of suppliers, developing longer-term relationships with fewer suppliers. Meanwhile, more and more corporations have increased their use of global suppliers—the most well-known examples being the sourcing of products from China and services from India—to significantly reduce their costs and remain competitive in global markets. As a result of both of these trends, many minority and women business owners have found it more difficult to win contracts and others have even lost business with established customers.

To respond proactively to supplier consolidation and outsourcing, a growing number of minority and women business owners are learning to master the supply chain. What is a supply chain? Think of all the steps involved in fulfilling a product or service request: the raw materials; the production; the warehousing and transportation; the participation of a distributor, wholesaler, and/or retailer. The supply chain of a product or service includes them all.

In [the manufacturing and utility industries], supply chains literally extend from digging raw materials out of the ground to the home of the final consumer. In the past, one company may have performed most activities in a supply chain, but today, most conduct only a subset of supply chain activities in that chain.


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© 2008 Edison Electric Institute