Supplier Diversity 

Supplier Diversity 

As organizations strive for inclusivity and social responsibility, supplier diversity has become an important consideration in the procurement process. But what is supplier diversity?

Supplier diversity can be defined as the proactive sourcing of goods and services from businesses owned by historically underrepresented groups. This includes businesses owned by minorities, women, LGBTQIA+ individuals, veterans, and people with disabilities.

The goal of supplier diversity is to create opportunities for these businesses and to promote a more equitable economy. By investing in minority-owned businesses, organizations can help to close the wealth gap and create jobs in underserved communities.

In addition to promoting social responsibility, supplier diversity can also benefit organizations financially. Diverse suppliers often offer innovative products and services at competitive prices. They can also help organizations tap into new markets and gain a better understanding of their customers’ needs.

Organizations should consider supplier diversity when developing their procurement strategies. We’ve put together a few tips to help you get started:

1. Define your goals: What are you hoping to achieve by diversifying your suppliers? Do you want to promote social responsibility or expand your customer base? By setting clear goals, you’ll be able to better evaluate potential suppliers and identify the best fit for your organization.