Achieving project diversity goals has become a critical imperative for general contractors, driven by escalating compliance requirements and the industry-wide push towards environmental, social, and governance (ESG) initiatives. However, the traditional approach to procuring bids from qualified certified diverse subcontractors is plagued by inefficiencies, inaccurate data, and limited outreach, impeding contractors' ability to meet targets and capitalize on the cost-saving benefits of increased competition.
To help general contractors solve this dilemma, Tough Leaf recently hosted an excusive webinar with our Founder & CEO, Wissam Akra, and Neah Brooks, our Head of Sales, exploring how artificial intelligence (AI) is revolutionizing this process, enabling contractors to seamlessly identify, vet, and engage a broader pool of qualified small, local, and diverse subcontractors. Here are a few highlights from the talk:
Understanding Supplier Diversity: Key to Project Success
Wissam started us off by breaking down how supplier diversity affects the bottom line, and impacts revenue by helping GCs win more projects.
The Impact of Supplier Diversity on Compliance and Revenue
He then explained how failing to meet supplier diversity requirements results in increased scrutiny, financial penalties, project disqualification, and withheld payments. Having diverse suppliers not only fosters innovation and efficiency but also garners local support and provides a competitive advantage for expanding into new markets and project types.
The Business Case for Supplier Diversity: Meeting Client Demands
Neah took the stage to stress the importance of meeting client demand for supplier diversity. Substantial government and private funding is directed towards diverse firms. By having relationships with diverse suppliers, businesses can not only meet project goals and expand opportunities but also significantly boost the return on procurement investment by encouraging competitive pricing and broadening bid participation.
Effective Strategies for Implementing Supplier Diversity Programs
Finally, Wissam outlined strategies for general contractors to create a program that will help them win more projects efficiently. These strategies include setting clear goals, identifying a base of suppliers, and understanding the necessary certifications. Contractors must also tackle the issues of inaccurate data, verifying supplier qualifications, and building relationships. To effectively address these challenges, general contractors need to invest significant resources, time, and effort.
Our session ended with a walkthrough of Tough Leaf and a live Q&A where attendees got the chance to clarify details and ask for advice. If you’d like to access a larger portion of the webinar recording, you can do so at Using AI to Find Diverse Firms.