Publication 554 - Supplier Diversity Terms
December 1997


For Postal Service buyers, potential suppliers, and industry or trade
organizations, this glossary establishes definitions for unique or special words
or phrases that are used within the supplier diversity arena. It does not,
however, provide comprehensive or precise legal definitions.

bundling - The consolidation of two or more requirements for supplies or
services. Bundling may provide opportunities for strategic alliances.

capabilities briefing - The process of sharing information between prospective
suppliers and the USPS on the supplier's qualifications and the USPS business

certification - A process to certify the status of a minority- or woman-owned
business, by government or trade organizations, or by self-certification. The
key factor is ownership and control of the business.

customer base - All Postal Service customers.

Diversity Development - A postal organization that promotes change and growth so
that the diverse needs of its employees, customers, and suppliers are integrated
into all business processes.

diversity development specialist - A member
of the Diversity Development staff whose responsibilities include developing
outreach programs to assist potential suppliers with purchasing opportunities.

economic development - The creation of jobs and capital in a particular
community as a result of contract awards to, or purchases from, local businesses
or businesses employing persons in
the community.

emerging market - A growing market niche that has not yet been penetrated, such
as a market relating to ethnic, gender, or lifestyle preferences.

equal access - All potential suppliers having the same information concerning
Postal Service purchasing opportunities.

flow-down - Contractor responsibility for subcontracting requirements.

goals and measurements - Mechanisms used to establish performance indicators and
accountability for Postal Service purchases with small, minority-, and
woman-owned businesses.

mentor-protege program - A cooperative agreement between large companies
(mentors) and small companies (proteges) whereby a mentor helps a protege to
hone its business, marketing, engineering, and technical skills.

minority-owned business - A business that is
at least 51 percent owned by, and whose management and daily business operations
are controlled by, one or more members of a socially and economically
disadvantaged minority group - namely, U.S. citizens who are Black Americans,
Hispanic Americans, Native Americans, or Asian Americans.

outreach - The process of proactively reaching out to various classes of
business owners to provide an awareness of Postal Service purchasing

outsourcing - Contracting the services of an outside firm to perform a business
function normally performed internally.

pre-qualification - The process of identifying suppliers whose record of
performance in the marketplace has demonstrated their ability to perform to
consistently high standards of quality and reliability.

pre-sourcing - The process of locating potential suppliers for anticipated
purchasing opportunities.

profile sheet - A Postal Service-developed questionnaire that contains summary
information on a prospective supplier's capabilities, size, status, geographical
area serviced, socioeconomic classification, and other relevant business

second tier - Subcontractor level, directly responsible to a prime contractor.

small business - A business, including an affiliate, that is independently owned
and operated, is not dominant in producing or performing the supplies or
services being purchased, and has no more than 500 employees.

source list - A list of potential suppliers capable of performing a selected
purchasing requirement.

sourcing - The process of locating potential suppliers for specific purchasing

strategic alliance - A contractual agreement
(not purchasing contract) used to promote marketing initiatives that benefit the
Postal Service through a partnership that combines core strengths, competitive
advantages, or needs with the attributes of another company for mutual market

subcontracting - Awarding of contracts by the prime contractor to suppliers for
the purpose of performing portions of the prime contract.

subcontracting plan - A formal plan submitted by the prime contractor that
specifies goals for using small, minority-, and woman-owned businesses (SMWOBs)
as subcontractors.

supplier diversity - The proactive business process that seeks to provide all
potential suppliers with equal access to purchasing requirements.

supplier diversity coordinator - An advocate of supplier diversity within
Facilities, Transportation, and Purchasing and Materials.

supply chain management - The coordination and integration of all activities
associated with moving goods from raw materials to the end user. This includes
sourcing, procurement, production scheduling, order processing, inventory
management, transportation, warehousing, electronic commerce, and customer

trade or industry association - An organized advocacy group or network of
businesses with a common objective to provide small, minority-, and woman-owned
businesses (SMWOBs) the opportunity to compete for contracts.

valuing diversity - Creating an all-inclusive environment that embraces respect
and cooperation among all people regardless of gender, age, race, religion,
language, nationality, or lifestyle.

woman-owned business - A business that is at least 51 percent owned by a woman
(or women) who is a US citizen, controls the firm by exercising the power to
make policy decisions, and operates the business by being actively involved in
day-to-day management.

To send questions or comments on terms to include in future editions, please
write to:

Corporate Supplier Diversity
US Postal Service
475 L'enfant Plaza SW Rm. 3821
Washington DC 20260-5616
For additional copies, submit Form 7380, MDC Supply Requisition, to your
material distribution center.

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