The problems coming from supplier-base downsizing. (minority-owned firms face fewer contract opportunities as companies downsize) (includes related article on Boise Cascade Office Products)(part four of a six-part article) (Minority Supplier Development - part 4)

Purchasing, February, 1995

Despite good intentions and sound business motives, supplier diversity has two major hurdles to cross - outsourcing and supplier-base downsizing.

Both are outgrowths of strategic supply management thinking aimed at making suppliers an integral part of the corporate competitive plan. In their search for supplier partners and strategic alliances with key suppliers, most major companies have drastically reduced the number of suppliers they deal with and substantially increased the dollars spent with individual outside suppliers.

Carried to its logical conclusion, this movement could effectively shut down many supplier diversity programs. Outsourcing and downsizing by their very nature foster the exclusion of small and minority business from the front...

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