Marketing Interactive – Supplier diversity programs have become familiar components of overall business thanks to heightened awareness around the benefits and advantages of developing more sustainable and inclusive supply chains. However, according to a report from R3, the idea that supplier diversity programs are a brand or PR exercise is still common.
There are also assumptions that lead to the thinking that working with smaller companies is a risk, and that people from minority and diverse backgrounds might not be able to deliver reliable service. Others bemoan the amount of financial resources and time required to manage supplier diversity pools.
“The truth is the value of supplier diversity programs runs deep into multiple facets of a company. Yes, it is important to overall corporate image and brand reputation, but it is also important from the perspective of talent management, regulatory compliance, sustainability in the supply chain (as we have seen from the pandemic), and competitive advantage,” said the report.
Taken from this perspective, a supplier diversity program is not just about procurement, and this needs to be communicated to stakeholders so they can understand the benefit of the success of such an initiative to their brand, business, and the communities in which their employees live and work in.