Sourcing and Procurement
Supplier diversity programs: Fostering inclusivity in procurement
Socially conscious businesses constantly strive to create an inclusive atmosphere across all levels of the organisation, and establishing supplier diversity programs goes a long way toward achieving this. Supplier diversity is a business strategy that ensures that diverse businesses are included in the procurement process.
Procurement practices built on supplier diversity motivate organisations to include businesses owned by minorities or disadvantaged or underrepresented communities. Supplier diversity programs can give organisations a competitive edge by providing access to various perspectives and innovative solutions from different suppliers. They also contribute towards benefiting the local community by building working relationships with small businesses in the region, encouraging economic growth.
Crafting a robust supplier diversity program
Organisations wishing to develop supplier diversity programs must establish goals and then strategise to achieve these goals. Common goals of an effective supplier diversity program include growing the number and diversity of suppliers and vendors across the supply chain, reducing the costs of products and services, and expanding the reach of the business.
Once specific goals have been formed, it is time to take steps to achieve these goals. These might include creating a database of potential vendors, setting up policies around connecting with these vendors, and establishing training programs that teach employees the best ways to engage and work with diverse suppliers.
The benefits of having an effective supplier diversity program
Having a supplier diversity program brings with it a host of benefits for your business and also favours the local community and society. Let’s look at some key benefits of working with a diverse pool of suppliers and vendors.
Exposure to various new perspectives
Providing opportunities to diverse suppliers can expose your organisation to new creative concepts, different ways of thinking, and greater innovation. This ultimately can help to distinguish your business from its competitors.
Economic inclusion for disadvantaged or underrepresented communities in the community
Initiatives that revolve around supplier diversity promote economic expansion for minority-owned businesses and enable small business owners to contribute to the economy. Supplier diversity programs create more employment opportunities, supporting the success and prosperity of the local community.
Access to a wider pool of prospective suppliers
Access to a diverse set of potential vendors and suppliers can lead to being able to create better quality products at lower costs. It also gives you access to a wider range of products and services, allowing you to diversify your offerings. The resultant increase in competition in the market boosts the local economy and gives consumers more choices.
More networking opportunities
Supplier diversity initiatives help businesses connect with new customers, untapped markets, and a wider range of suppliers. Supporting diverse businesses provides more networking opportunities, which is great for organisations looking to collaborate with other businesses. It also gives business owners access to new and distinct talent that may have otherwise gone unnoticed.
Highlights a business’s ethical values
Besides the above benefits, having a supplier diversity program demonstrates an organisation’s dedication to inclusiveness. Consumers tend to support businesses whose values align with their own, and showcasing that your company contributes to society and the local community will surely attract a loyal customer base.
In conclusion, there are several advantages to having an effective supplier diversity program. It helps boost supply chain efficiency, improve the quality of products and services, reduce costs, expand the customer base, and more.
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How can Infosys BPM help?
To ensure its long-term success and effectiveness, your organisation’s supplier diversity program must be carefully thought out and periodically reviewed and analysed. The Infosys BPM Sourcing and Procurement Services can streamline your processes with advanced AI-powered analytics and reporting solutions to provide accurate procurement insights for faster decision-making. Learn more about how Infosys BPM can help develop the perfect sourcing and procurement outsourcing strategy for your business.