Managing diversity in your supply chain requires more than just having a diverse workforce. You need to find ways to promote and support the entrepreneurship of minority groups, and ensure that the supplier base of your company reflects that of your workplace.
Workplace diversity vs supplier diversity
Creating a supplier diversity program requires a significant amount of effort. It involves strategy, focus, and dedication. It is also important to identify goals that challenge the status quo.
Educating employees is a key strategy for a successful diverse supplier program. Companies can also promote diversity across the business ecosystem by partnering with industry-led advocacy groups.
Developing a supplier diversity program is an opportunity to fight discrimination and improve the bottom line. Companies can create economic opportunities and increase innovation through a diverse supplier base.
Diverse suppliers are typically owned by historically underutilized population groups. They are often more responsive and agile. They can help a company stay dynamic in a volatile market.
The first step in creating a diverse supplier program is to obtain third-party certification. There are national and regional organizations that perform this service.
Benchmarking for supplier diversity
Using benchmarking for supplier diversity management can provide insights into areas of opportunity and growth. In addition, it can support a business case for developing a program and establishing spending levels for the future.
It can also help businesses recognize commodity categories and measure spend with diverse suppliers. This is a great way to find opportunities to increase spending with minority-owned suppliers. Identifying these opportunities can lead to a reduction in costs and improve the overall value of your spend.
Another useful benchmarking tool is to compare your spend to that of industry peers. This can provide insight into the most effective and efficient ways to use diverse suppliers.
If you want to improve your supplier diversity efforts, it’s important to have a clear set of goals. They should be a realistic reflection of your current level of performance, and they should align with your business goals.
Identifying opportunities to increase spend with minority-owned businesses
Identifying opportunities to increase spend with minority-owned businesses is a good idea for both the public and private sector. Some of these businesses have unique attributes, such as ethnic food, handicrafts, and make-up products. Others are created to address local or community needs. The Office of Minority and Women’s Business Enterprises can assist federal agencies with their contracting activities. This includes ensuring that they are leveraging appropriate staff from other agencies.
Among other things, the Office of Minority and Women’s Business enterprises can identify agencies’ needs and help them meet them. One way they do this is through the Office’s Supplier Diversity Program. It enables federal agencies to obtain certifications in diverse areas, including those from traditionally underrepresented groups. These certifications may help to unlock doors to new federal opportunities.
Managing spend analytics and ensure data integrity
Managing supplier diversity spend analytics and ensuring data integrity are two of the most important challenges for large and small businesses alike. Creating a robust program will increase your competitive edge and reduce costs. It will also help you build a stronger reputation as a leader in your industry.
Luckily, there are a number of solutions out there that will help you succeed. You can analyze your procurement spending, support more diverse suppliers and meet CSR objectives.
The best way to implement a high-impact supplier diversity program is to establish goals, track your progress, and recognize the companies that stand out in your supply chain. You’ll also need to measure the economic impact of your efforts.