Glossary of Terms
Supplier diversity is a fairly new term in Canada. Following definitions are designed to help you understand the language, navigate the space and make forward progress happen. Following is Supplier Diversity Glossary of Terms.
B2B – “Business to Business” denotes trade between commercial organizations rather than between business and private customers
B2C – “Business to Consumer” denotes the trade of goods/services between a business and consumers.
Capability Statement – A capability statement, normally a one-page document, is a communication tool to show buyers, at-a-glance, what your business is and what you can do for them. It helps you give general and specific information about your business, including company background, experience and areas of expertise that are particularly relevant and compatible to the requirements of the project or tender request.
Certification – authenticates that a business is owned, managed, and controlled by a qualifying diverse group. Certification also opens the door for opportunities to contract with major corporations and public procurement offices who have supplier diversity programs in place as a business strategy to increase the number of diverse suppliers within an organization’s supply chain. Supplier diversity certification occurs through a third-party certification agency such as WBE Canada. The process involves documentation, screening, interviews, and possibly on-site visits to confirm that your business is indeed diverse. Certified WBEs become eligible to compete under supplier diversity programs in large corporations & government entities.
Corporate Member – WBE Canada is NOT an association. We are the third party certification service provider for our Corporate Members. WBE Canada Corporate Members represent organizations committed to buying from diverse suppliers, specifically from women-owned businesses. These corporate and government entities have or are developing their supplier diversity programs and are open to supporting Canadian certified WBEs through their supply chains. WBE Canada is led by Corporate Members with the mandate to build connections and open doors between Canadian women owned businesses and corporate/government buyers across North America. WBE Canada’s Corporate Members are listed here.
Direct Spend – Direct spend refers to the purchase of any goods and services that are directly related to the making of company’s products. These goods can include raw materials, components, hardware, and subcontracted manufacturing services. These items are generally worked into a budget and are purchased in large quantities at pre-negotiated prices.
Elevator Pitch – An ‘elevator pitch’ is a short description of an idea, product or company that explains the concept in a way such that any listener can understand it in a short period of time. This description typically explains what the product/company is , what it does, why it is needed, and how you will get it done. A “pitch” can include one’s skills and goals, and why you would be a productive and beneficial person to have on a team or within a company/project. Elevator Pitches are often used in Matchmaker and Networking Roundtable meetings and it cannot be overstated its importance in making first impressions.
Indirect Spend – Indirect spend is focused on the day-to-day needs for operating the business. This can include office supplies, consultations, external professional services, software, marketing spend, repairs of any equipment, as well as any fees that need to be paid for disposing of waste or recycling. These types of purchases are made when there is a need.
Matchmaker – Business matchmaking is a highly focused form of networking between buyers and potential suppliers. Matchmaker meetings are fast paced and strictly scheduled, usually taking place within a larger networking event. Suppliers participating in a Matchmaker event need to be knowledgeable of who they are meeting including the buyer’s needs, be well prepared to answer any and all questions and be able to effectively pitch their capabilities and what they can offer to a buyer within a limited timeframe.
Meet the Buyer – Meet the Buyer sessions are designed to connect buyers to suppliers and vice versa. WBE Canada provides multiple opportunities to provide the introductions and networking between these groups, from virtual events through smaller events across regions or industries to large scale connections at our Annual Conference.
Networking Roundtables – A larger format that Matchmaking, Networking Roundtables provide excellent opportunities to network with peers while engaging with industry experts. Roundtables focused on specific industry topics are moderated by leading professionals in each field. Typically roundtables involve one to two corporate/government representatives and as many as 6 suppliers looking to learn more about the organization and procurement policies.
RFP – An “RFP” – Request for Proposal – is a bidding solicitation in which a company or organization announces funding is available for a particular project or program, and companies can place bids for the project’s completion. It outlines the bidding process and contract terms, and provides guidance on how the bid should be formatted and presented. A request for proposal for a specific program may require the company to review the bids to examine their feasibility, the health of the bidding company and the bidder’s ability to do what it proposed.
RFQ – An “RFQ” – Request for Quote – is a type of procurement solicitation in which a company asks outside vendors to submit a quote for the completion of a specific task or project. An RFQ, similar to a request for proposal (RFP), provides comprehensive information to the bidder concerning the project’s requirements. An RFQ frequently requires the bidder to itemize costs for each phase of the project allowing the soliciting company to compare several bids for like services.
Social Procurement (Social Purchasing) – Social procurement is essentially buying products and services from social enterprises, with the intention of making a positive social impact, be it a job creation for a historically disadvantaged community, or reducing carbon emissions. The term “Social Procurement” is mainly known among municipalities. Some Canadian municipalities add purchasing from diverse suppliers (supplier diversity) into their scope of Social Procurement initiatives.
Supplier Advisory Committee – The Supplier Diversity Committee represents certified WBE community at the governance level. Committee members are elected by certified WBEs for a 2 year period and their role is to act as an advocate for WBEs and to represent their interests to the Board of Directors to ensure that WBE Canada remains attractive and relevant to Canadian B2B women-owned businesses. Current Supplier Advisory Committee Members are listed here.
Supplier Diversity – Supplier diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. It emphasizes the creation of a diverse supply chain that works to secure the inclusion of diverse groups in the procurement plans for government, not-for-profits, and private industry.
Supplier Diversity Alliance Canada (SDAC) – The SDAC supports and informs governments, businesses and key stakeholders on the importance of inclusive procurement policies and practices through supplier diversity, leading to value with economic growth and social impact. The SDAC was established in 2016 for the intention of advancing supplier diversity in Canada. The SDAC is comprised of national supplier diversity organizations (WBE Canada, CAMSC, CGLCC) that specialize in certifying diverse suppliers. Collaborating and aligning efforts in key areas, the SDAC strives to improve economic opportunities for diverse certified suppliers from across the country, while assisting the various stakeholders in achieving their collective mandates. The SDAC focuses on three core activities: Advocacy, Research, and Learning.
Supplier Diversity Program – A Supplier Diversity program is a proactive business program/strategy which encourages the use of historically underrepresented businesses (including women-owned) as suppliers to enhance supply chain diversification in both corporate and public procurement. A Supplier Diversity Program adds value to the overall economy by providing opportunities to smaller diverse businesses that often encounter barriers such as access to capital and networking opportunities, promotes innovation, allows for new opportunities for business expansion, and displays commitment to doing business in diverse markets and economic growth of all communities.
Supplier Diversity Portal – Registering in a corporation’s Supplier Diversity portal is key for a supplier to understanding what it takes to do business within a corporation’s supply chain. For a corporation, the portal provides a snapshot of a new potential supplier. Once registered, a supplier is then included in the buyer’s database and has access to a wealth of information about the corporation/organization including company background, diversity policies and procedures, networking events, and bid opportunities.
Supply Chain – A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or service to the customer. Supply Chain Management is a crucial process because an optimized supply chain (which includes a diverse range of innovative suppliers) results in lower costs and a faster production cycle contributing to the health and growth of the overall economy
Tier 1 – A supplier who is awarded a contract for goods/services directly from a prime customer
Tier 2 – A supplier who is awarded a contract for goods/services directly from a Tier 1 supplier
Tier 3 – A supplier who is awarded a contract for goods/services directly from a Tier 2 supplier.
WBE – The term WBE represents a certified woman-owned business. WBE Canada certified businesses are for-profit enterprises, regardless of size, which are owned, operated and controlled by a woman or women members. Ownership by female(s) means the business is at least 51% owned by such individuals, at least 51% of the stock is owned by one or more such individuals. Furthermore, the management and daily operations are controlled by the woman or women members.
WBE Canada – WBE Canada is a non-profit organization, led by Corporate Members, that is opening doors for Canadian women-owned businesses to supply chains across North America. WBE Canada certifies Canadian firms that are at least 51% owned, managed and controlled by women and introduces them to opportunities with corporations. In addition to certification, WBE Canada delivers education, training, coaching and mentoring programs that ramp up the capacity of women business owners to bid successfully on large procurement opportunities. This support contributes to significant growth for women-owned businesses. The organization also facilitates the building of strong networks for women, by connecting them both with procurement officers of top corporations and with other certified firms in order to enhance their bidding capacity.
WBE Canada Certification – WBE Canada certification means that the business owner has applied and met the criteria as set out by WBE Canada as a third- party certification body and is a business that is 51% owned, controlled and managed by women. Certification is held for a term of 1 year and must be renewed annually upon proof that no changes have been made to their business structure. To learn more about certification click here.
WBE Database – see Supplier Diversity Portal above