A supplier diversity program is a means to ensure that the supply network a company uses takes into account the needs of marginalized and minority groups. This is important in ensuring that a company is a resource to the community within which it operates. The marginalized groups are women, youth, and special interest groups such as the disabled, and people who have been otherwise marginalized out of economic activity for one reason or another.
Why do you need a functional supplier diversity program for your business?
It has been recently discovered that marginalization of some parts of the population has caused a significant loss in economic growth and empowerment. This is because these groups lack the power to participate in economic activity under current conditions. As a result, these groups are a lost resource for the economic growth and development of a country. Supplier diversity is intended to ensure that these groups are integrated into gainful economic activity just as the rest of society. This not only creates economic empowerment and employment chances, but it also fosters a sense of community in society. Furthermore, supplier diversity empowers people to undertake gainful economic activity in a positive way and, therefore, reduced illegal and criminal activity.
How to integrate supplier diversity into your business
The first step involves taking stock of the entire business supply network, making a point of noting all the groups that are represented in the network. This will help the business to understand which segments of the community have been underutilized. The most effective way to do this is through the use of a data locator. This is a tool that is used to monitor the flow of data and locate data within a company. It can assist the company to track how supplies are sourced and what suppliers are used.
Once the data locator has finished the process of cataloguing a business’s entire supply network, the business can now embark on supplier diversification. In order to do this, they need to create a list of prequalified and vetted suppliers from underutilized population segments. They can use these groups to create a stable and reliable supply network that is able to meet all of their needs as a company. An added advantage to supplier diversification is that the business is able to reduce the risk that its supply network faces from external factors. This allows the business to perform effectively.
