_____________________________________________________________________________________________ Supplier diversity
Supplier diversity initiatives can achieve notable business benefits , including greater supply chain resiliency , wider supplier pools that drive down costs , and a boost to your brand reputation . These efforts also make a lasting impact on global communities , helping uplift diverse and small businesses that are more likely to hire talent from underrepresented groups .
Despite the benefits of supplier diversity , however , many companies struggle to improve their results in meaningful ways . According to Supplier . io ’ s 2023 Supplier Diversity Benchmarking report , companies on average spend just 3.6 percent of their budget with certified diverse suppliers — which leaves considerable room for improvement .
As companies assess ways to improve their programs , it helps to emulate industry leaders that exceed their peers by two-to-three times , achieving a 9.1 percent average spend . Let ’ s understand what these best-in-class companies have in common : their supplier diversity programs haven ’ t necessarily been around longer or have greater staff or budgets , but they excel in five specific areas that any organization can address .
Five ways to improve your supplier diversity program results
It can be a daunting task to decide where to start with supplier diversity and how to achieve meaningful progress . You need to first assess your current spend with certified diverse suppliers and then develop goals to increase your diverse spend .
Achieving your goals may be easier than you think , especially when you follow these best practices :
Leverage supplier diversity data to keep teams accountable Every company uses data to assess its progress toward ongoing business goals . However , leading organizations set themselves apart by tracking supplier diversity metrics with the same detail and focus as other business metrics including tracking results at the business unit level , forecasting , regular reviews , and implementing dashboards .
Once you ’ re confident in the accuracy of your supplier diversity data , start by creating dashboards that make your data and goals visible to each business leader . Ideally , you should display these stats in the same dashboard your leaders use to assess your overall business performance . Establish a goal
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