Supplier diversity is a business strategy that encourages companies to work with suppliers from different backgrounds and communities. This includes minority-owned businesses, women-owned businesses, veteran-owned businesses, small businesses, and other disadvantaged groups. The goal of supplier diversity is to create an equal playing field for all suppliers by providing access to opportunities that would otherwise be unavailable. By engaging in supplier diversity efforts, companies can benefit from the unique perspectives and experiences of suppliers from diverse backgrounds who can bring fresh ideas and solutions to the table. Additionally, it helps create a more inclusive workplace environment where employees feel valued and respected.

Currently, CEO engagement with these programs is soaring, with 61% of CEOs showing commitment, and yet their management performance objectives only include the metrics for supplier diversity at a rate of 38%. That means we have a long way to go to make supplier diversity a significant part of the procurement process, but it is a worthwhile goal based on the key advantages these programs bring to the business world.

Understanding the Macro Benefits of a Strong Supplier Diversity Program

Companies are predicted to increase their spending related to supplier diversity to 50% globally, according to one study and it’s no surprise. Cultivating a diverse supplier pool can bring big benefits to the business world, including:

More Innovation

Supplier diversity is an important tool for organizations to promote innovation. By encouraging the inclusion of a wide range of suppliers from different backgrounds, organizations can benefit from a more diverse pool of ideas and perspectives. This can lead to better problem-solving, increased creativity, and improved efficiency. Supplier diversity can also help foster collaboration between different groups within an organization as well as between suppliers and customers. This encourages innovative thinking that can help drive business success in the long run. Finally, many diverse businesses had to think out of the box to gain a foothold in a competitive market. This innovative thinking can help their business partners make better, more advantageous decisions to spur productivity and profitability along the way.

Better Supply Chain Resilience

Supplier diversity is a key component of supply chain resilience. It enables organizations to increase their supplier base, reduce their risk exposure, and ensure continuity of operations in the face of disruption. Here are three ways that supplier diversity can increase supply chain resilience:

• Diversification: By having a diverse supplier base, companies can reduce their risk exposure and have access to suppliers from different regions or industries. This reduces the likelihood that all suppliers will be affected by the same event or issue.
• Access to new technologies: By working with diverse suppliers, companies can access new technologies and innovative ideas that might not otherwise be available. This can help them stay ahead of the competition and remain resilient in the face of disruption.
• Increased flexibility: A more diverse supplier base gives companies greater flexibility when it comes to sourcing materials or services, allowing them to quickly adjust their supply chains in response to changing market conditions or customer demands. This increased agility helps keep supply chains robust, even when experiencing market shifts.

Even when supply bottlenecks occur, a resilient supply chain with diverse partners can help companies pivot to avoid operation slowdowns.

Access to Broader Markets

Supplier diversity provides access to new markets by helping a wide range of businesses to leverage their relationships. By partnering with diverse suppliers, organizations can tap into new customer segments and reach a wider audience, contributing to revenue growth and fiscal agility. This partnership can also help companies gain a competitive edge through new market opportunities and can even help develop new markets through access to innovative products and services.

Growing Customer Loyalty 

As more consumers move their spending toward companies with strong Environmental, Social, and Governance strategies, having a diverse supplier base becomes more important for businesses across the board. Customers who know the companies they do business with are supporting a diverse business environment are more likely to be loyal since they benefit from a shared commitment to people and the planet. Incredibly, a whopping three-quarters of consumers say they will stop making purchases from companies that don’t value people and/or the environment, so continuing partnerships with diverse suppliers can give the business world a way to foster loyalty and trust with consumers as a whole.

Greater Economic Growth

One of the most important macro improvements to the business world generated by supplier diversity is the trend toward greater, more stable, economic growth. By using a diverse pool of suppliers, businesses can generate more economic activity which helps underrepresented groups and the marketplace at large. Continued economic generated stability helps all businesses achieve financial goals more easily, generates jobs, and spurs new development.

How You Can Help Contribute to the Growth of Global Business

You’ve heard the phrase, “It takes a village,” and nothing could be more true when it comes to the stability and growth of the global economy. With technology allowing companies to work together over vast distances and across time zones, it has never been a better time to connect with partners around the world. Growing your supply chain with diverse partnerships not only benefits your individual business, but also the business world.

At Quality Imaging Solutions, we offer a great way to expand your resources using our high-quality services and products. As a certified women owned and disadvantaged business, we can help you get the diversity you need for competitive success and help your business make a difference in the global economy.

If you are ready to be a part of a positive change for the world and for your business, simply contact us today and let’s get started!