Supplier diversity may be a current trend in workplace Diversity, Equity and Inclusion initiatives, but what exactly is it and why is it important?
Diverse suppliers are businesses that are 51% or more owned, managed, and controlled by qualifying diverse individuals or traditionally underrepresented groups. This includes minorities, women, members of the LGBTQIA+ community, veterans, persons with disabilities, and those who meet the small business criteria as defined by the Small Business Administration (SBA).
Companies that rely on a diverse supply chain for their products and services are better able to meet consumer needs. They also benefit by having access to a wider variety of products and services. Here are just four examples of the many benefits of having a diverse supply chain:
- Diversifying Your Suppliers Helps You Stay Ahead Of Trends.
As companies become more globalized, they need to consider how to maintain diversity in their supply chains. This includes ensuring that they have access to a broad range of products and services, as well as maintaining relationships with different cultures and countries. A diverse supply chain helps companies stay ahead of trends. It allows them to tap into new markets and develop innovative solutions. This means they can provide consumers with a broader selection of products and services. And when they do so, they can keep up with changing customer preferences.
- It Gives You More Options When Buying Products And Services.
Diversifying your supplier base gives you more options when buying products and services. If you only buy from one company, you might not have access to certain products or services. However, if you work with multiple suppliers, you will have access to a wider variety of products and services. A diverse supply chain means you have access to a wide range of options, often at a competitive price
- It Makes Your Business More Competitive.
A diverse supply chain also makes your business more competitive. You can find new ways to differentiate yourself by offering unique products and services. This helps you stand out from competitors who do not offer these products and services. In addition, diverse companies have been shown to be more innovative, more productive, and more profitable.
- It Improves Customer Service.
Diversifying your supply chain allows you to connect with a wide range of customers and target audiences. This means you can better meet customer needs and expectations and expand your network of partners and collaborators even more. Customers who are aware of a company’s supplier diversity program often have a better brand image of that company.
Datalou is the only supplier diversity management system with over one million suppliers with specific capabilities in advertising, marketing, communications, and media. Our robust tracking and reporting system helps you document spending and sourcing efforts, manage certifications, and share data with stakeholders.