SUPPLIER DIVERSITY, A HINDERANCE OR A BLESSING?

A DIALOGUE WITH BETTY MANETTA, ARGENT ASSOCIATES

Share your experience as a diverse supplier. 

BM: My experience as a diverse supplier has mixed emo tions. Sometimes being pigeonholed into the diversity  bucket limits your ability to get exposure to other business  units outside the procurement department. This is especial ly challenging when developing innovative solutions or di versifying into new business areas. Sometimes the supplier  diversity segments of a corporate business have not caught  up with the latest trends or directions of the company. If  you have to go through a particular door (supplier diver sity), it can be a hindrance instead of a help to innovative to do business with Argent. Our advan tage is our ability to keep our prices competitive due to technology and  our incredible employees. 

What have been your challenges, and how have  you faced them? 

BM: In today's economy, one of the pressing issues many  companies face is the extended payment terms from our  corporate customers. In some cases, what started out as 60- 90 day terms has now turned into 120 to 180 days. Making  it hard to get financing and in no way is it “developing”  these businesses. These large companies are using small  businesses to finance them instead of the other way around.  The way to overcome this is to have good strong business  from non-corporate partners such as municipalities or gov ernment agencies. So, a balanced portfolio helps.

The second most significant issue is the overall inclu sion of other diverse businesses into the procurement pie,  which has not grown any larger. It is great to expand the  use of other diverse categories and create a more compet itive environment. However, that should also mean more  opportunities open for ALL diverse suppliers in previously unavailable areas. It's like building new homes and  inviting carpenters, plumbers, roofers, etc. to build the  houses, but only allowing them to build in a one-block  area instead of the entire subdivision. Contracts need to  be more long-term and profitable. 'One project and done'  does not create sustainability or enable talent acquisition  because it’s not sustainable. The way to face them is to  make sure you have a fully stacked funnel of opportunities  and try to find long-term contracts. 

As a minority supplier, what differentiation do you offer your clients? What is the advantage of hiring you vs. others?

BM: Our differentiation is our employees. Our talent, technology, and innovation make customers want to do business with Argent. Our advan tage is our ability to keep our prices competitive due to technology and  our incredible employees. 

What do you think are the gaps that minority suppliers face  versus others? 

BM: The gaps we face that other suppliers do not is again the one door  we are allowed to enter through. This is especially true as you try to break  into new industries. Some companies don't have visionary supplier diver sity managers, which hinders companies with innovative platforms and  technologies. Also, I think that non-minority companies have an easier  path to access capital than minority suppliers have a challenge. 

What are your plans for your business in the future?

BM: My plans for the business in the future are aligning with businesses. You can incur roadblocks if you don't have sup portive Supplier diversity managers. However, I have some  very supportive Supplier Diversity managers who have  opened the doors to great exposure. It's a mixed bag!