How do you measure the impact your supplier diversity / inclusive sourcing efforts have to the economy?
I provided a session on ”Measuring Impact – Best Practices” at the 2022 WEConnect International Global Symposium For Supplier Diversity & Inclusion on April 26th.
So what is Economic Impact? It’s the Impact that doing business has on the Economy. And what is Supplier Diversity Economic Impact? How doing business with diverse companies generates revenue, income, and jobs and how that activity impacts the local economy.
Before you start any supplier diversity / inclusive sourcing efforts or start measuring your impact, Get your Foundation; What is the impact you want to achieve? Do you have support from C-Suite? Do you have the right processes / tools / KPI’s in place? Once this is in place, anything from diverse spend to number of diverse suppliers to RFP analysis and much more can be measured.
You can then measure different Impact Effects – some of them are below;
- Output Effect – Spend with Diverse Suppliers
- Employment Effect – Number of Jobs created (by diverse suppliers)
- Income Effect – Income generated back to the community
- Tax Effect –Overall Taxes (Federal / Country, State, Local)
If you didn’t have a chance to attend the WEConnect International Symposium in April, check out the events page on WEConnect International especially the annual WEConnect International Day coming up again on June 30th, to learn more about Inclusive Sourcing.
Also a great read on this topic; https://www.supplychainquarterly.com/articles/6237-how-to-build-a-supplier-diversity-program-that-will-drive-long-term-impact