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Supplier Diversity & Inclusion Among Top Procurement Trends For 2024
In 2024, top procurement trends include actions for Procurement Innovation, Transformation and Procurement As A Force For Good.
In addition to trends such as AI, automation, and analytics, the focus is on sustainability, inclusion and diversity, including Supplier Diversity & Inclusion. Supplier Diversity & Inclusion not only supports the social component in ESG (Environmental, Social & Governance) measurements, but also your environmental and governance measures with various factors.
Supplier Diversity & Inclusion is a strategic approach that emphasizes sourcing products and services from a wide range of suppliers, particularly those owned by individuals from underrepresented groups such as minorities, women, LGBTIQ+, people with disabilities, and veterans. This practice is not only a response to social injustice but also a means of encouraging innovation, boosting competition and creating a more inclusive economy. By actively seeking out and working with suppliers from underrepresented groups, companies can reap the following benefits;
- Creative solutions and varied perspectives that diverse businesses offer
- Widen the pool of potential suppliers
- Promote competition in the supply base
- Improve product quality
- Long-term partnerships
In summary, Supplier Diversity & Incluison is not only a social imperative but also a business strategy that can lead to a more inclusive economy. It is moving away from being just a corporate social responsibility (CSR) goal to becoming a business imperative.
Geri Stengel recently published a great article in Forbes on ”Spur Economic Growth By Protecting Supplier Diversity Programs” in which she states; ”It has been reported by the World Economic Forum that businesses that prioritize diversity, equity, inclusion, and belonging (DEIB) are up to 36% more profitable and have up to 20% higher rates of innovation. One of the key elements of DEIB is supplier diversity, which means that it should not only be a designated program within procurement but also a top priority for the entire company.
Fostering diversity, equity, inclusion, and belonging (DEIB) requires more than just having strong policies and procedures in place. It necessitates every employee in an organization to approach their work with an inclusive mindset. ”
If you need help to get your employees mindset changed, reach out!
