As part of Penn’s ongoing commitment to supplier diversity and inclusion, the University has introduced a pilot program to extend ‘immediate pay’ payment terms to its diversity suppliers. This new modification positively impacts approximately 1,000 suppliers that do business with Penn (minority, woman, veteran, LGBTQ+, and other classifications) that qualify as diverse suppliers.
“Feedback obtained from engaging an inclusive array of stakeholders indicated that financial barriers related to cash flow and cost of money can put diverse businesses at a comparative disadvantage and, in turn, impede diverse suppliers’ ability to compete for business,” explains Penn’s Chief Procurement Officer Mark Mills. “Adjusting the payment terms for our diverse suppliers, is responsive to their needs and consistent with Penn’s goals of economic inclusion—particularly since the majority of these suppliers also identify as small business, and many are located in Philadelphia.”
The pilot, anticipated to run through FY2022, will examine the quantitative and qualitative data collected to assess whether this practice will continue. Consistent with Penn’s economic inclusion goals, a study is underway to ascertain the inclusion of other small, local businesses in Philadelphia.