To say the global economy is vast, 𝙞𝙨 𝙖𝙣 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙩𝙚𝙢𝙚𝙣𝙩. But here's the kicker, 𝙨𝙢𝙖𝙡𝙡 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨 𝙡𝙚𝙙 𝙗𝙮 𝙗𝙖𝙙𝙖𝙨𝙨 𝙬𝙤𝙢𝙚𝙣 are carving out some seriously crucial spaces, while offering so much more than just a mundane commerce experience. These businesses stand as a testament to the 𝙣𝙚𝙫𝙚𝙧-𝙜𝙞𝙫𝙚-𝙪𝙥 human spirit and they're helping foster a socio-economic environment that's diverse, inclusive, and simply better off.

Sounds pretty good, doesn't it? Well, it doesn't just stop at 𝙨𝙤𝙪𝙣𝙙𝙞𝙣𝙜 𝙜𝙤𝙤𝙙 - it's also smart economics. 𝘽𝙪𝙩 𝙝𝙚𝙧𝙚'𝙨 𝙩𝙝𝙚 𝙩𝙝𝙞𝙣𝙜, even though there's a ton of evidence stacked in favor of including more woman-led businesses in the global supply chain, there's still some roadblocks we need to clear. For example, studies show that 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙬𝙞𝙩𝙝 𝙖 𝙙𝙞𝙫𝙚𝙧𝙨𝙚 𝙨𝙪𝙥𝙥𝙡𝙞𝙚𝙧 𝙗𝙖𝙨𝙚 𝙨𝙚𝙚 𝙖 133% 𝙜𝙧𝙚𝙖𝙩𝙚𝙧 𝙧𝙚𝙩𝙪𝙧𝙣 𝙤𝙣 𝙥𝙧𝙤𝙘𝙪𝙧𝙚𝙢𝙚𝙣𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩𝙨 than those without any supplier diversity programs.

Getting women-led business into procurement processes is about more than just changing infrastructures. It's about fostering an environment allowing these businesses to 𝙧𝙚𝙖𝙡𝙡𝙮 𝙜𝙧𝙤𝙬. In this piece, 𝙬𝙚'𝙧𝙚 𝙜𝙤𝙣𝙣𝙖 𝙙𝙞𝙫𝙚 𝙙𝙚𝙚𝙥 into the nitty-gritty of how we can help women-owned small businesses flourish, and why procurement pros are key players in this journey.

The Untapped Power of Women in Business

It’s no secret that women-owned businesses are an underutilized force in today’s global economy. With diverse perspectives, innovative ideas, and often a heightened sense of responsibility towards community and environment, these businesses are hotbeds of untapped potential.

According to a March 8th 2024 edition of Supply & Demand Chain Executive by Elizabeth Vazquez and Etosha Thurman at SAP , "To reap the full benefits of supplier diversity and help women-owned businesses thrive within the world of procurement, we must focus on the right access, data, technology and overall approach."

When it comes to supplier diversity, the benefits of women-owned businesses are many. They stimulate economic growth, create jobs, and foster a culture of inclusivity. By recognizing and 𝙝𝙖𝙧𝙣𝙚𝙨𝙨𝙞𝙣𝙜 𝙩𝙝𝙚 𝙨𝙩𝙧𝙚𝙣𝙜𝙩𝙝𝙨 𝙤𝙛 𝙬𝙤𝙢𝙚𝙣 𝙚𝙣𝙩𝙧𝙚𝙥𝙧𝙚𝙣𝙚𝙪𝙧𝙨, companies can not only enhance their supplier portfolios but also solidify their commitment to corporate social responsibility.

Navigating the Procurement Paradigm for Women

The procurement process can be equated to a labyrinth—𝙘𝙤𝙢𝙥𝙡𝙚𝙭, 𝙛𝙞𝙡𝙡𝙚𝙙 𝙬𝙞𝙩𝙝 𝙩𝙬𝙞𝙨𝙩𝙨 𝙖𝙣𝙙 𝙩𝙪𝙧𝙣𝙨, 𝙖𝙣𝙙 𝙣𝙤𝙩 𝙖𝙡𝙬𝙖𝙮𝙨 𝙚𝙖𝙨𝙮 𝙩𝙤 𝙣𝙚𝙜𝙤𝙩𝙞𝙖𝙩𝙚. Yet, for women-owned businesses, the challenge is often multifaceted. They encounter not only the standard difficulties of breaking into a new supply chain but also the added layer of gender bias.

The World Bank reports that 1 𝙞𝙣 3 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨 𝙖𝙧𝙚 𝙤𝙬𝙣𝙚𝙙 𝙗𝙮 𝙬𝙤𝙢𝙚𝙣 𝙜𝙡𝙤𝙗𝙖𝙡𝙡𝙮, and yet corporations, governments, and other large organizations 𝙨𝙥𝙚𝙣𝙙 𝙤𝙣𝙡𝙮 1% 𝙬𝙞𝙩𝙝 𝙬𝙤𝙢𝙚𝙣-𝙤𝙬𝙣𝙚𝙙 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨. One Percent!

To address these disparities, procurement professionals must first acknowledge the obstacles at play. These may range from unconscious biases in decision-making to systemic barriers that limit opportunities for growth. However, with the right strategies in place, these challenges can give way to opportunities for empowerment.

Increasing Procurement Opportunities

Getting hands on a rich mix of suppliers isn't a cakewalk. Yet, it's become a must-do in business today. Governments globally are pushing for more diversity and inclusion. Plus, consumers are pretty vocal about loving goods from women-owned and other overlooked businesses, bringing quality and positive impact. Recent stats say nearly a third of them would choose women-owned brands when shopping.

There's no doubt, 𝙨𝙪𝙥𝙥𝙡𝙮 𝙘𝙝𝙖𝙞𝙣 𝙨𝙮𝙨𝙩𝙚𝙢𝙨 𝙩𝙝𝙖𝙩 𝙥𝙧𝙞𝙤𝙧𝙞𝙩𝙞𝙯𝙚 𝙞𝙣𝙘𝙡𝙪𝙨𝙞𝙫𝙚 𝙨𝙤𝙪𝙧𝙘𝙞𝙣𝙜 𝙘𝙖𝙣 𝙘𝙝𝙖𝙣𝙜𝙚 𝙩𝙝𝙚 𝙜𝙖𝙢𝙚 𝙛𝙤𝙧 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨. For women-owned firms specifically, getting them into the competition for procurement can create big waves. That's thanks to women's powerful innovation, great foresight, and knack for problem-solving around community and green issues.

According to the World Economic Forum's Global Gender Gap Report 2023, 𝙬𝙚’𝙡𝙡 𝙣𝙚𝙚𝙙 131 𝙮𝙚𝙖𝙧𝙨 𝙩𝙤 𝙝𝙞𝙩 𝙜𝙚𝙣𝙙𝙚𝙧 𝙥𝙖𝙧𝙞𝙩𝙮....131 𝙔𝙚𝙖𝙧𝙨!

Overall, 𝙢𝙤𝙧𝙚 𝙜𝙚𝙣𝙙𝙚𝙧 𝙚𝙦𝙪𝙖𝙡𝙞𝙩𝙮 = 𝙗𝙚𝙩𝙩𝙚𝙧 𝙨𝙤𝙘𝙞𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙘𝙝𝙖𝙣𝙘𝙚𝙨 for everyone, which leads to overall inclusive economic growth. So how can we make it smoother for big corporations to discover and partner with women-owned businesses?

Providing Unprecedented Access

Access to opportunities is the lifeblood of business growth. By creating streamlined pathways for women-owned companies to enter the procurement fold, we can bolster their presence in the global market. This includes everything from dedicated forums and matchmaking events to mentorship programs that provide guidance and support. A game-changer in the procurement onboarding processes is Graphite Systems (Graphite Connect) who boasts that they can shorten supplier-onboarding by 70% with validated supplier data....collect everything from critical details like tax and banking information to topics such as compliance and sustainability.

Leveraging Data and Technology

In the digital age, data and technology are the great equalizers. By utilizing these tools, we can enhance transparency, foster competition, and streamline the procurement process. Technology also provides a platform for women-owned businesses to showcase their capabilities and be discovered by prospective buyers. A leading driver for supplier diversity is Supplier.io - who routinely makes the ProcureTech100 list year after year. Supplier.io is a data and SaaS provider, helping companies across the world - including 1 in 5 Fortune 100 companies - to manage, optimize and scale their ESG and supplier diversity initiatives.

Adopting Sustainable Practices

Sustainability is becoming increasingly prominent in procurement decisions. Many women-owned businesses place a premium on environmental and social responsibility. By aligning with these values, companies can not only meet their procurement needs but also contribute to a more sustainable future. Need help vetting your diverse suppliers and their sustainability practices? Then check out EcoVadis- a purpose-driven company whose mission is to provide the world's most trusted business sustainability ratings. Businesses of all sizes rely on EcoVadis to comply with ESG regulations, reduce scope 3 emissions, and monitor and improve the sustainability performance of their own business, and of their value chain.

Building a Supportive Network

Creating networks that facilitate collaboration, shared resources, and support among women entrepreneurs is invaluable. These networks serve as a platform to address common issues, share best practices, and foster a community of solidarity and growth. Don't know where to start? Perhaps your organization should consider partnering with the WBENC (Women’s Business Enterprise National Council) who is a leading non-profit organization dedicated to helping women-owned businesses thrive.

Championing Education and Training

Investment in education and training is pivotal. By equipping women-owned businesses with the tools they need to succeed—from business skills to leadership development—procurement organizations can play a pivotal role in their advancement. If you didn't already know, WBENC fuels success for women-owned businesses by offering multiple programs and opportunities designed to support business development and growth, from pitch competitions to executive education programs.

Policy and Advocacy

Advocating for policies that promote diversity and inclusion can create lasting change. By engaging with governments, industry associations, and other stakeholders, procurement professionals can help shape a future where women-owned businesses are an integral part of the global supply chain. One thing to consider, is how the COVID-19 Pandemic really threw a giant wrench in our global supply chain. One of the lessons corporations learned, was the need for localizing more of their supply chain to decrease time in transport, reduce transportation costs and reduce their carbon footprint regarding their transportation programs. And one way to help achieve supply chain localization is to utilize local diverse small businesses. Check out MIT Center for Transportation & LogisticsSustainable Supply Chain Lab for more info.

The integration of women-owned businesses into the global economy is not just a matter of ethics—𝙞𝙩’𝙨 𝙖 𝙨𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝙞𝙢𝙥𝙚𝙧𝙖𝙩𝙞𝙫𝙚. Our unique perspectives, innovative solutions, and commitment to excellence make us valuable partners in the procurement process. By clearing the path for our entry and ensuring our continued support, you not only pave the way for our success but also for the enrichment of the global business landscape as a whole.

The focus is on procurement and supply chain professionals to be the change agents in this narrative of diversity and inclusion. By championing the cause of women in business, you not only empower individual enterprises but also contribute to a more vibrant, innovative, and sustainable global economy.

𝙏𝙝𝙚 𝙩𝙞𝙢𝙚 𝙛𝙤𝙧 𝙖𝙘𝙩𝙞𝙤𝙣 𝙞𝙨 𝙣𝙤𝙬, and the rewards are as vast as the untold stories of the women entrepreneurs who are waiting to be empowered.

𝙒𝙚 𝙖𝙧𝙚 𝙝𝙚𝙧𝙚. 𝙒𝙚 𝙖𝙧𝙚 𝙬𝙖𝙞𝙩𝙞𝙣𝙜. 𝘼𝙣𝙙 𝙬𝙚'𝙧𝙚 𝙣𝙤𝙩 𝙜𝙤𝙞𝙣𝙜 𝙖𝙬𝙖𝙮.