Supplier Diversity at BT

BT is committed to expanding opportunities for Minority Business Enterprise, including (Race, Disability and Gender) to participate in their procurement activities.  There are positive benefits in introducing more competition either directly or through sub-contractors from previously untapped suppliers because BT believes a healthy business is a diverse business.

Processes

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. In 1998 BT created a Supplier Diversity Programme which aimed to ensure equality of access for businesses owned by ethnic minority and under-represented groups to BT’s procurement opportunities, either as suppliers or sub-contractors.

 

Its business case is based on the need to attract the widest possible talent pool. The procurement imperative lies in searching for creative, leading edge solutions which will enable BT to serve its customers better and enter new markets. BT also anticipates that a more diverse supply base will help them achieve better value for money.  

 

A recent supplier survey undertaken to quantify BT's supply base identified the fact that 14% of respondents consider themselves to be Minority Business Enterprises.

 

The introduction of electronic tendering and a dedicated website has helped to simplify BT’s procurement processes. This has resulted in a more direct point of contact to individuals responsible for buying in specific areas. The programme has also contributed to the transparency of the procurement process through procurement seminars and business-to-business mentoring. This has been facilitated through “Meet the Buyer events” this year with Minority Supplier Development UK (MSDUK) and will continue next year with a widening of scope to encompass ethnic and gender based opportunities.

 

Impact

  • Businesses participating in the programme report that they have become stronger and more competitive, with greater confidence to compete for contracts with BT and other large organisations. They have developed their skills, their understanding of procurement processes and are more alert to potential supply opportunities
  • Between 1998 and 2002, “a third of the 19 companies mentored had secured work directly or indirectly with BT as a result of the programme.”
  • BT has gained from access to a more diverse supplier base, which has brought fresh talent and ideas into the organisation and challenged aspects of the way it does business
  • The programme has increased BT’s awareness and understanding of diverse customers and markets. It also helps demonstrate that the company is serious in promoting equal opportunities and diversity, which can help in recruitment
  • BT and their larger suppliers have gained from the staff development opportunities provided by the mentoring relationships.
  • Emerging Market Economics Ltd (eme) is a leading provider of economic advisory services worldwide and brings together skills in development economics, business strategy and corporate social responsibility to assist companies and governments with enhancing competitiveness, strengthening investment and creating wealth.

See also

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