How Supplier Diversity Can Reduce Indirect Procurement Costs for Added Value
January 15, 2023 3:00:00 PM PST January 15, 2023 3:00:00 PM PSTth, January 15, 2023 3:00:00 PM PST
Supplier diversification does more than just protect your supply chain and make your organization more flexible and agile — it also contributes by adding value to the workplace. This added value results from the overall improvement of the workplace, an improvement that directly supports higher productivity, better performance, and even social advancement. But greatest among the improvements realized through a supplier diversity program is the reduction of costs in your indirect procurement spend. This wide spectrum of advantages is perhaps why American companies have earmarked over $50 billion in funds to both women-owned and minority businesses in the next decade.
A Closer Look at the Positive Impact of Supplier Diversity
Recent research shows that supplier diversity programs help companies build stronger workforces, more resilient bottom lines, and conserve capital expenditures. Here’s how that gets accomplished:
Supplier diversity helps to reduce overall costs by intensifying competition within the marketplace, nudging larger enterprises to reduce prices, which leads to more efficient, less expensive purchases for buyers. It also forces suppliers to remain innovative so that they can win representation in future contracts. Suppliers that are more adaptable are also more likely to remain viable through shifts in market, demand, or economic changes, helping buyers to avoid the cost impact caused by disruptions in supply chain.
A diverse supplier pool, as we mentioned above, also encourages innovation so that suppliers can stay competitive. This kind of innovation can result in advantageous contractual terms, but it can also help develop a greater diversity of goods and services on offer. When you have more choices in the goods and services available, you also have a greater opportunity to save by making selective choices.
Develops New Partnerships
Another key value of a strong supplier diversity strategy is the ability to connect with new, high-level talent that you may have otherwise overlooked. Through building new partnerships you company can gain access to additional markets, expand your client base, and build more value for the goods and services that you offer to others.
Choose Supplier Diversity and Choose Success
As a woman-owned small business enterprise (WBE) and a disadvantaged small business enterprise (DBE), we can bring diversity to your supplier pool, but we don’t stop there. At Quality Imaging Solutions, we focus on providing high quality products and value driven services that directly — and positively — impact our clients’ bottom lines. Our goal is to remain at the cutting edge of both technology and expertise, so that we may better serve our business partners and customers, bringing both added value and reliable, affordable pricing to the mix.
If you want to partner with a supplier that offers not only diversity, but value, you’ll want to know more about how we work and what we can offer. When you’re ready to save money and gain the advantages of diverse supplier pool, contact us and learn more about how to get started!