As businesses face increasing pressure to address social and environmental issues, whilst ensuring they have a robust DE&I strategy, many are recognizing the importance of diversifying their supply chains. Economic inclusion, innovation and creativity, and lower risk of relying on a single supplier and more, come with embracing a more diverse set of suppliers. Read on and let’s explore why diversifying your supply chain is a smart move for any organization, and how it can meet your Environmental, social, and governance (ESG) goals.
What is Inclusive Sourcing?
Inclusive sourcing is the practice of intentionally seeking out and engaging with diverse suppliers, including those owned by ethnic minority and women business owners. By doing so, companies can create a more equitable and inclusive business environment, while also reaping the benefits of working with a broader range of suppliers.
One of the key advantages of inclusive sourcing is that it helps to build stronger relationships with diverse communities. By partnering with suppliers that reflect the diversity of your customer base, you can better understand their needs and preferences, and tailor your products and services accordingly. This, in turn, can lead to increased customer loyalty and revenue growth.
So what is Supplier Diversity?
Supplier diversity is the intentional inclusion of businesses owned by ethnic minority and women business owners in a company's supply chain. By promoting supplier diversity, companies can support the growth of these businesses and create opportunities for economic empowerment in underrepresented communities and marginalized groups.
Studies have shown that supplier diversity programs can have a positive impact on a company's bottom line. For example, a study by the Hackett Group found that companies with robust supplier diversity programs had a 133% greater likelihood of outperforming their peers in terms of financial performance. Supplier diversity programs can also help companies mitigate risk by diversifying their supplier base, making them less vulnerable to supply chain disruptions.
The Power of Innovation and Social Impact
In addition to the social and financial benefits of inclusive sourcing and supplier diversity, there is also the potential for innovation and social impact. By working with a more diverse set of suppliers, companies can tap into new ideas, perspectives, and approaches that can lead to breakthrough innovations, meeting your ESG criteria.
Furthermore, supplier diversity can have a ripple effect on the broader business ecosystem. By creating opportunities for underrepresented businesses to grow and thrive, companies can help to create more diverse and equitable communities. This can have positive social and economic impacts that extend far beyond their own organizations.
Larger organisations who invest heavily in DE&I initiatives but fail to address diverse suppliers miss out hugely in promoting social and economic development within underrepresented communities. However, by considering and supporting small businesses, you create jobs, promote equity, and inclusion, which can improve a corporation's reputation and relationship with its stakeholders.
The Diverse Supplier's Visibility Summit -10th November 2023
If you're interested in exploring the benefits of diversifying your supply chain as an organisation and consider getting involved with the Diverse Supplier's Visibility Summit. This annual event brings together business leaders, supplier diversity professionals, and diverse suppliers to discuss best practices, share insights, and build reputable connections.
By attending The Diverse Supplier's Visibility Summit, you'll have the opportunity to learn from experts in the field, connect with potential suppliers, and build relationships with other organizations that share your commitment to supplier diversity and inclusive sourcing.
Hold the date: Friday 10th November 2023
The one event for your calendar that you cannot afford to miss held in a swanky venue in the City of London!
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Diversifying your supply chain is not only the right thing to do from a social and ethical perspective, it's also a smart business move. By embracing inclusive sourcing, supplier diversity, and social impact, companies can create a more equitable and resilient business ecosystem that benefits everyone. If you're ready to take the next step, let's talk about how you can get involved with The Diverse Supplier's Visibility Summit as a speaker, sponsor or supporter!