How can you improve your competitive advantage, greater business efficiency and meet your ESG (Environmental, Social, Governance) goals?
We help create, advance, and make your Supplier Diversity & Inclusion 1st and 2nd Tier efforts more powerful by applying the fips Supplier Diversity & Inclusion Methodology
- Foundation – Create a foundation for successful efforts based on your Vision, Mission & Strategy
- Performance – Set up 1st and/or 2nd Tier initiatives, KPI’s, tracking and reporting systems & analyzation
- Outreach – Increase visibility and outreach of your Supplier Diversity & Inclusion efforts
- Empowerment – Help grow & evolve diverse owned businesses with trainings, mentoring and events
Services – customized to your needs:
- Formal supplier diversity & inclusion trainings and workshops
- Enhance your current supplier diversity & inclusion efforts
- Implement 1st and 2nd Tier purchasing efforts for your major suppliers by analyzing your current suppliers and identifying areas where diverse owned businesses can enhance your supply chain
- Support your internal team to recognize and qualify diverse owned suppliers and integrate them into your supply chain
- Create a reporting mechanism to track your diverse spend
- Set up mentoring and education programs
- Increase visibility of your company through your Supplier Diversity & Inclusion efforts
What is Supplier Diversity & Inclusion?
Have you been hearing the term “supplier diversity” or ”inclusive sourcing” but aren’t sure what it means? As with many business terms, the definition and implementation of the words can vary by company. Find below more information.
In general, supplier diversity & inclusion is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. It emphasizes the creation of a diverse supply chain that works to secure the inclusion of diverse groups in the procurement plans for governments, not-for-profit organizations, and private industries.
Supplier diversity & inclusion efforts recognize that sourcing products and services from previously under-used suppliers helps to sustain and progressively transform a company’s supply chain, thus quantitatively reflecting the demographics of the community in which it operates by recording transactions with diverse suppliers.
Supplier Diversity & Inclusion also includes purchasing from companies which have a social and enviroonmental purpose like Social Enterprises.
What is a Diverse Supplier?
A diverse supplier is a business that is at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group. Common examples are minority-owned, women-owned, veteran-owned, LGBT+-owned, or people-with-a-disability-owned, suppliers and in some cases also social institutions like Social Enterprises (see above), Sheltered Workshops, etc.
Why is Supplier Diversity & Inclusion valuable?
Why should companies make inclusive supply chains a priority? Supplier diversity & inclusion combines the best of our desires for a more inclusive world and the drive to be a competitive leader in the marketplace.
Does your company have Diversity & Inclusion workforce efforts in place? Does your enterprise have a corporate sustainability/social responsibility mandate? If this is the case, then you should think about implementing supplier diversity & inclusion efforts.
For most companies, these efforts represent an opportunity to actively join the fight against racial discrimination, create economic opportunity, and enhance their businesses.
Inclusive procurement also delivers broader societal benefits by generating economic opportunity for disadvantaged communities.
There are several reasons why supplier diversity & inclusion or inclusive procurement / supply chain efforts benefit a company:
- Increasing competitiveness among suppliers
- Promotes innovation through the introduction of new products, services, and solutions
- Reducing risk in the suply chain
- Meeting customer demands
- Building community prosperity
To know the importance of supplier diversity & inclusion in-depth, Harvard Business Review published this informative article.
We are here to help create, advance, and make your Supplier Diversity & Inclusion 1st and 2nd Tier efforts more powerful by applying the fips Supplier Diversity & Inclusion Methodology.
