CPSM Essentials in Supplier Diversity 3 â Questions and Answers
Question 1: Which supplier diversity certification is specifically designed for businesses that are at least 51% owned, controlled, and operated by LGBTQ+ individuals?
- NGLCC certification (Correct answer)
- WBENC certification
- NMSDC certification
- DOBE certification
Correct answer: NGLCC certification
The National LGBT Chamber of Commerce (NGLCC) certifies LGBT Business Enterprises (LGBTBEs), providing recognition for LGBTQ+-owned businesses in corporate supply chains.
Question 2: A buying organization discovers that a certified MBE supplier has been acquired by a large non-diverse corporation but still holds its certification. What should the procurement team do?
- Notify the certifying body and request re-verification (Correct answer)
- Continue counting the spend as diverse without action
- Immediately remove the supplier from all diversity tracking
- Request a discount to offset the loss of diversity value
Correct answer: Notify the certifying body and request re-verification
Certifications must reflect actual ownership and control; the procurement team should alert the certifying body so ownership criteria can be re-evaluated.
Question 3: What is the primary purpose of a 'matchmaking event' in a supplier diversity program?
- Connect diverse suppliers directly with corporate buyers (Correct answer)
- Train procurement staff on diversity regulations
- Audit existing diverse supplier certifications
- Negotiate pricing with incumbent diverse vendors
Correct answer: Connect diverse suppliers directly with corporate buyers
Matchmaking events create structured opportunities for diverse suppliers to meet and pitch to corporate procurement decision-makers, facilitating new business relationships.
Question 4: According to ISM principles, which element is MOST critical when building a business case for a supplier diversity program to present to senior leadership?
- ROI data showing revenue and innovation benefits (Correct answer)
- A list of competitors' diversity certifications
- The number of diverse suppliers in the local area
- Historical spend data with non-diverse suppliers
Correct answer: ROI data showing revenue and innovation benefits
ISM emphasizes that supplier diversity business cases must demonstrate quantifiable valueâincluding revenue access, innovation, risk mitigation, and market expansionâto gain executive buy-in.
Question 5: A procurement manager sets a 15% diverse spend goal. By year-end, only 9% was achieved. Which action is the BEST corrective measure for next year?
- Break down the gap by category and set category-level targets with buyer accountability (Correct answer)
- Lower the goal to 9% to reflect actual performance
- Mandate that all new contracts go exclusively to diverse suppliers
- Require all buyers to attend a one-time diversity training
Correct answer: Break down the gap by category and set category-level targets with buyer accountability
Category-level analysis identifies where the shortfalls occurred and assigns ownership, enabling targeted action plans that are more likely to close the gap.
Question 6: Which of the following best describes 'capacity building' in the context of supplier diversity?
- Providing diverse suppliers with training, mentoring, and resources to grow (Correct answer)
- Expanding the number of buyers reviewing diverse supplier bids
- Increasing the budget allocated to diverse spend goals
- Building a larger database of certified diverse suppliers
Correct answer: Providing diverse suppliers with training, mentoring, and resources to grow
Capacity building focuses on developing the capabilities of diverse suppliersâthrough mentorship, training, and access to capitalâso they can compete for and sustain larger contracts.
Question 7: Which certification body certifies Women Business Enterprises (WBEs) for corporate supplier diversity programs?
- WBENC (Correct answer)
- NMSDC
- SBA
- USPAACC
Correct answer: WBENC
The Women's Business Enterprise National Council (WBENC) is the largest third-party certifier of women-owned businesses in the US, recognized by hundreds of major corporations.
CPSM Essentials in Supplier Diversity 3
Which supplier diversity certification is specifically designed for businesses that are at least 51% owned, controlled, and operated by LGBTQ+ individuals?