Societal Benefits Of Supplier Diversity Program
The importance of a diverse supplier base must be addressed. As explained below, an organization delivers broader societal benefits by encouraging inclusive supply chains.
- Supplier diversity programs help all suppliers gain equal accessibility to sourcing and purchasing opportunities. This diverse culture can help the organization focus on the individual capabilities of the diverse suppliers and provide better opportunities for them while benefitting from their resources.
- A diverse supply chain can showcase the demographics of its community better than non-inclusive supply chains. It helps organizations gain insight into which groups to focus on better.
- Minority-owned businesses and other certified diverse suppliers can get a chance through supplier diversity programs to play their part in contributing to the economy of the nation. There is greater scope for innovation due to the diverse range and the introduction of more products and services provided by diverse suppliers.
An efficient ESG reporting software can help organizations track their supplier diversity programs.
Economic Impact Of Diverse Groups On Supply Chain
1. Enables to combat inflation
2. Saves operational costs
3. Helps in overcoming risks
4. Increases sales
5. Promotes employment
6. Enhances the organization's market value
Ways To Launch A Successful Supplier Diversity Strategy
- Promoting a great company culture is the right way to kickstart an effective supplier diversity program. The company should believe in unity in diversity and have a broad perspective on including the underprivileged.
- The procurement team should develop a strategy outlining the organization’s proposed supplier diversity programs. It should outline how the strategy maps to the company’s business goals, the steps involved in implementing the strategy, and why the return on investment could be sufficient to lead the business toward success. The end stakeholders should be educated regarding the purpose and effectiveness of the strategy to win their support.
- The organization should identify certified diverse suppliers and create a policy for inclusion. It should also identify the existing diverse suppliers in its supply chain to know its actual diversity spend before it heads toward more supplier diversity.
- Collaboration with peers to gain new ideas is also essential to stay on par with them. Your company should note its initiatives and check if you have implemented them.
- Attend events related to supplier diversity initiatives to expand your network and promote inclusion. Attending the programs hosted by agencies that provide certification to diverse suppliers would be beneficial. Some such agencies are NMSDC, WBENC, and USPAACC, to name a few.
- Allocate a dedicated professional to manage diversity in the supply chain and takes care of the implementation of business strategies.
- Track progress periodically by leveraging technology. The right ESG reporting software makes the job easy.