supplierdiversity

Supplier diversity is a business initiative that actively seeks to include businesses owned by diverse groups in a company's supply chain. These diverse groups can include, but are not limited to, women-owned businesses, minority-owned businesses, veteran-owned businesses, LGBTQ+-owned businesses, and businesses owned by people with disabilities. The goal is to create a more inclusive and equitable marketplace by providing opportunities to a broader range of suppliers.

Companies implement supplier diversity programs for several strategic reasons. These can include fostering innovation by tapping into new ideas and perspectives from a wider array of businesses, enhancing brand reputation and corporate social responsibility, and increasing competition within the supply chain, which can lead to better pricing and service. Furthermore, a diverse supplier base often reflects the diversity of a company's customer base and the communities in which it operates.

Establishing and managing a supplier diversity program typically involves setting specific goals for procurement from diverse businesses, identifying and vetting potential diverse suppliers, and providing support or mentorship to help these businesses grow. Measuring the program's success often involves tracking spending with diverse suppliers and assessing the impact on the company's overall business objectives. These programs are an integral part of many large corporations' procurement strategies.