Tier II Goal Methodology refers to the calculation of Tier II Reporting goals within Supplier Diversity. The purpose of a Tier II Report is to ensure Tier I Prime Suppliers are utilizing diverse suppliers to complete customer contracts. To understand the percentage of Diverse Spend attributed to a Tier I Prime Supplier, goal methodologies are required.
Within the field of Supplier Diversity, the main goal methodology used to determine a Tier I Prime Supplier’s Diverse Spend is known as Percent of Sales. This methodology is used by the majority of organizations and uses a Tier I Prime Supplier’s corporate sales to determine its diverse spend percentage.
To learn more about the different types of Goal Methodologies, click on one of the methods below:
- Percent of APV / Payments Received
- Percent of Addressable Spend
- Percent of Estimated Purchases (based on Customer Sales)
- Percent of Total Purchases
- Percent of Customer Sales
- Percent of Total Sales