A diverse supplier is, in the broadest sense of the term, a business owned or operated by a traditionally underrepresented or underserved group.
Some common examples are small, minority-owned, or women-owned businesses. So why is it so important to boost supplier diversity programs?
While it is true that socially and morally, supporting minorities strengthens us as a society. In the business world, supplier diversity reaches other levels. On one hand, it achieves equitable participation in the market allowing companies to receive considerable benefits for implementing these types of programs. In turn, this creates a positive ripple effect in the community.
Some advantages of supporting diverse suppliers are:
Inclusive approach: For some years now, people have realized that the strongest business relationships are created by smaller and more diverse suppliers.
Customers expect more diversity: Partnering with diverse suppliers will give your company a competitive advantage when faced with changes in client demographics. For example, if you operate in an area with a fast-growing minority population, then it will be key to develop relationships with minority-owned suppliers.
Diversity drives innovation: Fierce business competition among diverse suppliers is another driver of innovation. Essentially, diversity provides a range of opportunities, born of suppliers’ backgrounds and life experiences to help overcome homogenous thinking, resulting in new perspectives.
Diverse suppliers tend to be more flexible: Since most diverse suppliers are smaller companies, they can generally offer greater flexibility, better customer focus, and lower cost structures than larger companies. Smaller, more diverse suppliers are less likely to be tied down by restrictive policies.
Lastly, some of the world’s leading companies are forging ahead with supplier diversity programs. Microsoft, for example, recently surpassed $2 billion in annual spending on small business partnerships.
Another tech giant, Google, launched a supplier diversity program in 2015 and continues to promote it through their Google Academy.
To conclude, these programs represent an opportunity to actively join the fight against discrimination, create economic opportunities and improve business. Becoming part of the HCCMO Supplier Diversity Program is the first step in creating new opportunities for you and your business.
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