Let’s Talk About the Benefits of Supplier Diversity!
Procurement is a key player in an organization’s supplier diversity program. However, the role that procurement plays should not be limited to writing checks. Procurement teams understand their supplier base, the value they add and their capabilities. Like other types of strategic suppliers, diverse suppliers can become an integral part of an organization’s operations by providing new ideas or approaches to existing problems or processes.
Procurement’s role in a company’s supplier diversity program should not be limited to writing checks.
Procurement’s role in a company’s supplier diversity program should not be limited to writing checks.
In fact, procurement leaders should be involved in the decision making process and planning process on all things related to diversity, equity and inclusion efforts in their supply chains. Procurement is responsible for sourcing the right products at the right price—so why shouldn’t they also help source suppliers that align with other corporate goals?
A procurement team understands its supplier base, their capabilities and the value they add. Like other types of strategic suppliers, diverse suppliers can become an integral part of an organization’s operations.
A procurement team understands its supplier base, their capabilities and the value they add. Like other types of strategic suppliers, diverse suppliers can become an integral part of an organization’s operations.
Procurement teams are experts at identifying potential suppliers for a wide range of products and services and helping them grow as a business. They know how to work with suppliers to ensure they are meeting the company’s needs while supporting the goals of increasing diversity, equity and inclusion efforts in your supply chain.
Diverse suppliers can be a source for innovation and new ideas for an organization. Building relationships with diverse suppliers and incorporating their perspectives into the work an organization does can lead to new approaches to existing problems or processes.
At its core, diversity means that there are different kinds of people with different backgrounds and experiences working together. But this doesn’t just mean that you should build relationships with diverse suppliers who fit your definition of “diverse.” It is important to think about why those companies might be able to bring value to your organization. For example, they may have expertise in a certain area or they may have access to new markets or customers that you don’t yet know about.
Diverse suppliers can help solve problems because their perspectives often provide new solutions for a problem or challenge an organization is facing. They can also help organizations think outside the box by introducing new ideas or processes that were previously not considered by the group working on a specific project. Additionally, diverse suppliers can create innovative products because they bring unique perspectives and experiences from other industries into their work at your company—this could lead to some truly unique solutions!
Diverse suppliers are not solely about cost savings. You may spend more on one diverse supplier than you would on a general category supplier, but there is value to the knowledge and creative thinking diverse suppliers bring to the table that makes it worth your while.
Diverse suppliers are not solely about cost savings. You may spend more on one diverse supplier than you would on a general category supplier, but there is value to the knowledge and creative thinking diverse suppliers bring to the table that makes it worth your while.
Diverse suppliers can be a source for innovation and new ideas for your organization, which can help you expand your supplier base by enabling you to see new opportunities within the marketplace or create products that previously did not exist in the market place.
The importance of having diverse suppliers in our business cannot be understated as they allow us to have a well-rounded product offering while also ensuring we remain relevant as an industry leader. In addition, our customers look at us differently when they know we are working with diverse suppliers because it shows them we care about making sure their needs are met across all facets of our operations – from sourcing raw materials through manufacturing and sales support down through logistics services such as warehousing/distribution management etcetera!
Think outside of where you typically do business. If you are looking for new ways to innovate or to solve a specific problem, think about where you haven’t done business before. There could be opportunities in areas you weren’t thinking about or places you typically only use for certain goods and services that have more to offer your organization.
Think outside of where you typically do business. If you are looking for new ways to innovate or to solve a specific problem, think about where you haven’t done business before. There could be opportunities in areas you weren’t thinking about or places you typically only use for certain goods and services that have more to offer your organization.
Let’s say that as an organization trying to improve its supply chain diversity and inclusion efforts, your team is looking at companies who share your values but don’t currently work with them. What would it mean if these companies worked together? It could mean a win-win situation for both parties, whether through cost savings or increased innovation–and this kind of collaboration can grow over time into something much bigger than either party expected!
Build relationships with companies that share your goals of increasing diversity, equity and inclusion efforts in your supply chain and overall as a company.
Build relationships with companies that share your goals of increasing diversity, equity and inclusion efforts in your supply chain and overall as a company.
Share information about your organization’s diversity and inclusion efforts. For example, if you are working on improving hiring practices or sourcing more suppliers with women-owned facilities, invite suppliers to participate in those efforts.
Invite suppliers to participate in training programs. If you have an open house at your headquarters or another event where employees can meet suppliers face-to-face (including partners), send invitations out proactively.
Including diverse suppliers in your purchasing strategy benefits them, as well as your organization, beyond simply writing checks for their goods or services.
In addition to the moral and ethical benefits associated with diverse supplier sourcing, there are also non-financial benefits. First and foremost, including diverse suppliers in your purchasing strategy allows you to solve problems faster than if you were going it alone. Many organizations have limited access to industry experts who can help them navigate complex technical issues related to their products or services. Including diverse suppliers on your team can provide access to those types of experts, who may not otherwise be available without them being part of the process from the beginning. Secondly, including diverse suppliers enables you as an organization to innovate faster than if you were doing it alone—especially when considering how much talent exists beyond our current understanding of diversity! Finally, by including more companies within your supply chain that offer different products or services at varying price points (and sometimes lower prices), you will save money on some things while spending more on others; this allows for increased overall savings throughout all purchases made through this approach because it expands options across multiple tiers instead of limiting them solely within one tier where costs tend towards higher levels due upon fixed overhead costs incurred per transaction due solely by virtue of being unable
Conclusion
When you work with diverse suppliers, it’s important to establish a relationship with them that goes beyond simply writing checks. The procurement team can be a valuable ally in helping these companies grow their business and find new opportunities within your organization.