Diversifying your spend and supplier portfolio can be financially sound strategy. It can be 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 collaborative spend landscape creates opportunity
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 as time has progressed so has the focus on strategically working with different minds 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: Tapping into your customer base can be beneficial for growth
Fostering partnerships that are inclusive of your full customer base will help grow your business and provide a competitive advantage. Through supplier diversity you can stay connected to the base you serve, this ensures you are meeting your customers' needs as well as your internal stakeholders' goals.
SUCCESS FACTOR #3: Many thoughts and minds drives innovation
As with any meeting, idea or concept, having multiple ideas and thoughts from people of differing experience levels 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. This will empower collaboration in process innovation, allowing for high-performing teams.
SUCCESS FACTOR #4: Supplier flexibility satisfies unique goals and needs
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.
Read the Full Article
Read the full article on procurious.com to go more in depth with each reasoning behind the value. 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.
Spend Made Easy
Each enterprise has different spend goals and needs and are challenged with bandwidth, time resources and have existing relationships. Identifying market-leading suppliers that provide optimal quality and fit your specific requirements, no matter what they are, needs can be difficult for strapped procurement teams. That is why we offer an array of suppliers programs from various spend groups that have been thoroughly vetted and proven market-leading. 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.