Supplier diversity program is a tool that businesses use to ensure that they have a strong and functional supplier network. They are also able to ensure that the supplier chains that make their supply network are as strong as they possibly can be. This makes the business secured in terms of the ability of its supplier to meet its needs at any point in their operations. That these programs can be bettered is without a question. One of the least appreciated tools that can make a real difference is the use of data enrichment tools in the process.
What are data enrichment tools?
These are tools that are used to analyze the data that a company produces and derive any actionable intelligence from the same. They enable the company to take raw data derived from its operations and turn it into a useful asset for the company. The first task that these tools perform is cleaning up the data that the company has accumulated. This means that any duplicate entries are deleted, extra information is added if it available, and damaged data is removed or restored if that is possible. The data, once it has been cleaned, is run through a number of processes that seek to identify trends and patterns that can be usefully interpreted to provide value to the company.
The process is at the core of business analytics, but it is only recently that businesses have discerned that they could use it for supplier programs. This allows them to identify any weaknesses and inefficiencies in the way that they source supplies and suppliers. They are, therefore, able to take any necessary corrective action to rectify the situation before it becomes a problem to their operations.
How does this impact supplier diversity programs?
First, it boosts the knowledge base that is used to undertake the process of supplier diversification. The processing of data allows the company to identify trends and patterns that may be too subtle for normal manual methods. Second, it enables the company to identify suppliers who are within its supply network that are not meeting their expectations or those that can bear greater responsibility. This enables the business to optimize the performance of its supply networks. Lastly, it enables the business to automate the process of supplier diversification. This results in time saving and cost saving that improves the supplier diversity performance of the business as a whole.
