More minority-owned businesses are competing in the U.S. today than ever before. And their numbers are rising rapidly—faster, in fact, than the rate of increase for all U.S. businesses. Yet their share of annual gross receipts and paid employees remains relatively flat. To get a bigger piece of the American pie, minority business enterprises must overcome the obstacles that inhibit their growth. Two of the most glaring: supplier consolidation and global sourcing. In "Mastering the Supply Chain: A Perspective," authors Jett, Pyke, and Johnson contend the solution lies in a better grasp of the supply chain and how to manage their role within it.

Specifically, they say, minority business enterprises must learn to:

Manage the supply chain fundamentals

All supply chains are risky, although to different degrees. That risk is defined by variation in supply and demand. For a supplier, managing supply chain basics means identifying the types of risk for its products and services, then managing the common challenges and solutions associated with these risks.

Sell the value of a shorter and more reliable supply chain

Global sourcing may be cheaper than domestic sourcing, but it also can present problems: long lead times, quality concerns, and management challenges. Minority business enterprises can counter long-distance competition by offering a total value package, not one based solely on price. Shorter lead times, excellent quality, and flawless execution and performance can drive viable competition with global suppliers.

Transcend today's supply chain

Changes in the business environment—customers, competition, technology, and globalization - shift the value propositions within a supply chain over time. To ride the waves of change, the company must address escalating expectations that define where future value will be. For minority businesses, skills in partnering, mergers and acquisition are critical for rapid moves into new value propositions and gaining access to high growth opportunities.

Some companies today are choosing to follow a revolutionary path: creating a new supply chain from scratch. That's what computer giant Dell and Spanish clothier Zara did, and what minority-owned Lakota Express is doing. Authors Jett, Pyke, and Johnson say this path "expresses the soul of innovation, entrepreneurship, and economic growth."

"Mastering the Supply Chain: A Perspective" employs case studies of minority business enterprises that have mastered the aforementioned techniques and gained economic advantages over their competitors. In the end, the authors recommend "if other minority entrepreneurs do the same, then economic prosperity can be enhanced in communities across the nation."

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