Establishing a Supplier Diversity Program
Leading companies realize that implementing and managing a supplier diversity or minority supplier program is not only ethically responsible, it can actually help to improve the bottom line through increased sales.
However, Supply Chain and Sourcing departments are often tasked with creating diversity supply programs, but are not provided the expertise and tools necessary to ensure those programs don’t add a premium to the goods and services that your company purchases. Source One can help your organization develop a supplier diversity program, supporting corporate efforts for minority purchasing, without the traditional stigma of paying a premium for diversity suppliers.
Businesses are increasingly recognizing the economic and community importance of supporting historically disadvantaged and minority owned suppliers. These companies look to encourage purchasing from historically underutilized businesses and, where possible, introduce new minority suppliers into their supply chains. In years past, many businesses initiated supplier diversity programs simply out of social responsibility. However, organizations today are developing their value even more, understanding the role minority spend programs play in their overall corporate goals and how they can aid in finding untapped supplier resources.
Source One can help your organization evolve the relationship with suppliers from historically underutilized population groups. We understand that supplier diversity programs require an intricate system that is flexible to different geographical segments, trends of the market, supplier minority qualifications, and indirect methods of capturing this spend. Additionally, we can help you refine your minority spend initiatives within an existing program, helping you strengthen supplier relationships and community bonds while increasing your savings.
Our supplier diversity program solutions include:
- Defining supplier diversity: Whether you call it supplier diversity, minority spend, or historically underutilized, Source One can distinguish program definitions according to your company objectives and location.
- Training procurement to identify minority suppliers: Source One can guide your internal team to recognize and qualify minority suppliers within existing supply chain groups.
- Developing metrics: We can create the key performance indicators (KPIs) to gauge if you are reaching your minority spend targets.
- Cultivating diverse suppliers through Supplier Relationship Management: Source One can help you to support existing suppliers develop their own supplier diversity program, eliminating the need to source new vendors.
Many organizations are tentative to develop strong supplier diversity programs due to costs. Some assumptions include that minority spend suppliers are more expensive. However, a study by the Hackett Group showed that companies who have focus on supplier diversity initiatives produce a 133% greater return on procurement investments compared to a typical business. There is no shortage of these historically underutilized businesses and in most cases, there is never a reason to overpay for using a minority-owned suppliers.
Source One provides on-demand resources and expertise to support companies that either seek to refine an existing program, or begin a new diversity spend program. We understand the complexities within minority spend programs, and can help you navigate the right solutions to support suppliers from historically underutilized population groups.
Contact Us for help with your supplier diversity program needs.
Source One Understands Supplier Relationships
Supplier Relationship Management Drives Supplier Value
A comprehensive SRM program can offset supply chain risk, enhance supplier services, support supplier diversity initiatives, maintain and improve upon the value acquired during original sourcing event, and even increase top-line revenue growth.
Learn more in our SRM Insights Report