May 21st is International Diversity Day, as such we wanted to reflect on the importance of supplier and spend diversity, and how diversifying your supplier portfolio is both ethically and financially a sound strategy. It is no secret this is an impactful and strategic value-driver but it is often hard to speak to exactly why or what benefits an enterprise can take advantage of by purchasing in this way. We leaned on the experts at procurious to help us elaborate on this specific topic through a recent article they published.
According to procurious there are 5 key reasons supplier diversity matters:
SUCCESS FACTOR #1: A lack of diversity was created, so it's up to us to fix it
Every year diversity spend has been rising on the agenda of supply chain and procurement managers. In the past this was not always the case but thankfully as time has progressed so has the focus on strategically working with different minds and backgrounds to create a more collaborative spend landscape. This is an important factor to be cognizant of when selecting your supplier partners and fostering business relationships.
SUCCESS FACTOR #2: Customers are increasingly expecting diversity
Your customers are diverse, so your business should be as well. Fostering partnerships that are inclusive of your entire audience base will help grow your business and provide a competitive advantage. Through supplier diversity you can stay connected to the exact base you serve, this ensures you are meeting your customers' needs as well as your internal stakeholders' goals.
SUCCESS FACTOR #3: Diversity drives innovation
As with any meeting, idea or concept, having multiple ideas and thoughts from people of differing backgrounds and experiences promises that the approach will be unique - not cookie cutter. Including various perspectives can create a new level of innovation that would not have been possible without diversity. This will empower collaboration in process innovation, allowing for high-performing teams.
SUCCESS FACTOR #4: Diverse suppliers are often more flexible
Often diverse suppliers have a more customer focused approach and lower cost structures, which allows for more flexibility and adaptability. All organizations have unique needs, working with a supplier who can align and adapt to those needs is a huge advantage.
SUCCESS FACTOR #5: Well-known organizations are leading the way
Your enterprise peers are already doing this. Some of the largest enterprises in the world have specific and detailed supplier diversity programs. Increasing your focus on this specific area of spend will continue to prove beneficial year over year.
Read the Full Article
Read the full article on procurious.com to go more in depth with each reasoning behind the value of diversity. Spend Matters also posted an article on inclusion, how you can move beyond spend and actually measure the impact of these programs - read the article here.
Diversity Made Easy
Outside of the clear PR benefits this strategy provides to an organization, it clearly impacts the business in various other valuable ways. OMNIA Partners has always recognized the value and benefits to diversity spend. We also understand that each year enterprises need to and want to satisfy diversity spend but are challenged with bandwidth, time resources and have existing relationships. Identifying market-leading suppliers that provide optimal quality and fit diversity needs can be difficult for strapped procurement teams. That is why we offer an array of suppliers programs from various diverse spend groups that have been thoroughly vetted and proven world-class. You can view our suppliers and easily identify how they will help you achieve this goal on our category portfolio, which includes an easy to use legend.