Secure Your Business with Vendor Diversity Programs as a Supplier Risk Management

In the current, tricky economic environment, businesses have to focus on supplier risk management. One cannot count on a business to be always successful and in operation, and it is, therefore, best to be cautious and to create a diverse portfolio of suppliers at all times. While focusing on supplier risk management may seem like a way to be too cautious and conservative, it actually can have exactly the opposite effect. A common tactic that is far from conservative is focusing on vendor diversity programs. Even extremely large and successful corporations who are at little risk of financial failure, such as Wal Mart, are utilizing vendor diversity programs as a form of supplier risk management.

Vendor diversity programs encourage businesses to look for suppliers that have been underutilized and brushed aside in the business world. In the past, business was rampant with discrimination. This is falling away as we become a more liberal and global society, and as all groups of people are learning to work with those of other nationalities, genders, races, and classes. This assures you a larger group of suppliers to choose from and makes it more likely that your vendor will weather any coming economic storms.

These programs encourage the use of vendors that are women owned, minority owned, veteran owned, LGBT owned, or SBA defined as a small business. Far from being overly conservative and limiting, this opens up your business to new products, ideas, and customers bases that you may have never considered before. When you work with people who have been underrepresented, you will find yourself exposed to new ideas, products and services that have been underutilized in the marketplace itself. This will encourage customers that you have never attracted before to consider your business or service. It also offers you fantastic social marketing, which is terribly important in this golden age of social media. You can tie your business in with charities and grassroots organizations, which help to foster an image of your business as caring, concerned part of the community.

A choice like this can breed customer loyalty and trust, which is hard to come by in this area of bitter, cynical, and economically hard-pressed consumers. While you help keep your business’s supply chain healthy and safe, you can also give back to the community, expand your product base, and attract more customers than you have ever dreamed of having before. This is a win for society and your business.

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