Inclusive Procurement

The Power of Partnerships

Inclusive procurement practices can drive prosperity, yet systemic barriers often prevent historically marginalized businesses from securing corporate contracts. To tackle this in Chattanooga, the chamber of commerce is spearheading an innovative pilot program in partnership with vendors, funders and anchor institutions.

Pilot program focuses on equity and economic mobility.

At the Chattanooga Area Chamber, our strategic goals gave focus to equity and economic mobility with the understanding that inclusion isn't about checking boxes; it's about asking the hard questions and then rolling up your sleeves to do the work.

How we did it:

• Assembled an advisory council of thought leaders to develop the program.
• Facilitated conversations revealed a need to increase procurement opportunities for Black-owned businesses, which made up only 1.7% of firms that employed workers in Chattanooga.
• Carefully vetted selected participants poised for growth.
• Lenders and advisors were looped in to strengthen vendor capabilities.
• Realigned criteria for corporate partners. Sought those with flexible procurement policies and executive-level inclusion champions.

Partners Rise

Healthcare giant Erlanger has proven to be an ideal fit. Its chief diversity officer personally sponsors chamber-led info sessions for vendors, and they are providing ongoing support with bid navigation. The results show we are seeing more certifications.

We continue to see insights emerge around communication gaps, the value of social capital and unconscious bias. Through the process, the chamber found itself clarifying processes between vendors and buyers and unearthing the significance of behind-the-scenes sponsors for upstart minority firms. This began pushing companies to assess vendor capacity individually rather than make blanket assumptions.

Chamber’s Role

The pilot underscores chambers' vital role as conveners and collaborators in advancing inclusive procurement. When executed well, they can improve communications, reduce bias and build the social capital to grow diverse businesses.

With U.S. demographics rapidly diversifying, chambers should champion such efforts. Employees and customers increasingly demand equitable and inclusive environments.

DEI means productivity and profit

By dismantling barriers to procurement, chambers help build a vibrant economic ecosystem where all businesses can thrive. In Chattanooga, the collaborative pilot marks a meaningful step on this ongoing journey.

Lorne Steedley, Vice President of Diversity and Inclusive Growth, Chattanooga Area Chamber of Commerce