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By Editorial Staff

Supplier diversity programs are more than socially responsible — they're also good for business. They help improve the way a company serves its markets, and they represent significant revenue opportunities for buyers and sellers alike. Supply & Demand Chain Executive recently sat down with Matthew A. Troka, vice president, product and partner management at CDW Corporation, to discuss his company's success with its supplier diversity program.

Supply & Demand Chain Executive: What did CDW see in the marketplace that caused it to explore the idea of implementing a supplier diversity program?

Matthew Troka: The U.S. Small Business Administration recently spotlighted the economic impact of small, diverse businesses, citing that women- and minority-owned businesses account for 10.6 million businesses worldwide. Minority-owned business is among the fastest growing segments of the U.S. economy. CDW realized this is a large pool of suppliers that can be tapped on to help us offer products with appeal to a diverse customer base, and in turn, boost our competitive advantage.

We determined that launching a supplier diversity programs with minority-, women- and veteran-owned, and small business partners would enable us to address customer needs and buying requirements. Our partnerships with qualified businesses will help us to provide a better customer experience, while contributing toward economic growth in diverse communities throughout the United States.

SDCE: Tell us a little bit about your company's supplier diversity program.

Troka: CDW provides technology solutions for business, government and education. Our company launched its supplier diversity program in May 2007 and it currently includes partnerships with 65 minority-owned businesses, 101 women-owned businesses and 39 veteran-owned businesses, as well as additional classifications such as small, disadvantaged and disabled. Our supplier diversity program partners work with us to fulfill our functional requirements, and with our customers to provide specific product or service offerings.

For example, one of CDW's largest customers has aggressive direct tier-two spend goals in its diversity objectives. "Direct tier-two spending" is the process by which a contracted majority vendor subcontracts to a qualified minority-owned business for goods or services that directly support the fulfillment of a contract.