Certification in Supplier Diversity Practice Exam

What is one appropriate measure for evaluating suppliers in a diversity program?

1. Performance reviews of top executives

2. Quality, cost performance, and service level

3. Supplier technology adoption rate

4. Employee retention statistics

The correct answer is: Quality, cost performance, and service level

Evaluating suppliers in a diversity program requires a metric that aligns with the core goals of supplier diversity, which includes promoting inclusive practices while ensuring that the suppliers meet the organization's operational standards. Quality, cost performance, and service level provide critical insights into how effectively a supplier can meet the demands of the business while maintaining diversity as a factor. By focusing on quality, organizations can assess whether suppliers deliver products or services that meet specified standards. Cost performance ensures that suppliers offer competitive pricing, which is essential for maintaining budgets. Service level reflects the ability of suppliers to meet contractual obligations, manage relationships, and provide consistent service, which is vital in a diverse supplier environment. While performance reviews of top executives and employee retention statistics may reflect aspects of a company's internal dynamics, they do not directly measure the capabilities and competitiveness of the suppliers themselves. Similarly, the technology adoption rate might indicate innovation but does not encompass the broader criteria necessary for evaluating supplier effectiveness in a diversity program. Hence, choosing quality, cost performance, and service level as evaluation measures directly relates to understanding and promoting supplier diversity effectively.