Connecting the Dots in Su Local economy
What are some words that come to your mind when you hear ‘supplier diversity’?
Buying from diverse businesses allows them to support and create jobs, increase wages, and pay more in tax revenue, which benefits their local communities. In the long term, supplier diversity programs are likely to attract new businesses to the supply chain and give companies open access to different markets. This, in turn, provides the fuel for a dynamic and competitive economy.
Here are some words that best describe it Opportunity, Access, Equity, Inclusion, Relationshipbuilding, Innovation. Supplier Diversity is procurement that is ethical. It is a business strategy and a smart business choice.
WHO BENEFITS FROM SUPPLIER DIVERSITY?
Now that we have established the benefits of supplier diversity, let us look into who the key
players in a supply chain are:
Diverse businesses Diverse-owned businesses, including women, LGBTQ2+, veteran, and minority-owned companies often face hurdles that other companies do not, including challenges with access to funding, the ability to network as easily, prejudices, and other issues. Supplier diversity helps these businesses get a leg up to grow their business - offering them business allows them to scale up and compete better in the market, which further encourages innovation within supply chains, fostering growth within communities.
Diverse Supplier A diverse supplier is a business that is at least 51 per cent owned, operated, and controlled by either women, members of an Indigenous community (e.g., First Nations, Inuit, or Metis people), members of a visible minority group or members of the lesbian, gay, bisexual and transgender (LGBT) community. • Tier One (Tier 1) Supplier: A Tier 1 supplier provides its products or services directly to the large corporation, for example a WBE company selling its products or services to Company X. • Tier Two (Tier 2) Supplier: A Tier 2 supplier provides services or products to the Tier 1 supplier of a large corporation, for example, a WBE company selling its products to Company X’s Tier 1 supplier would be considered a Tier 2 supplier to Company X. • Opportunities for diverse suppliers might be in some larger organizations at the Tier 3 level or below. It is critical for diverse businesses to understand their place in the supply chain and for supplier diversity professionals to communicate this information to suppliers.
Organizations seeking diverse suppliers Supplier diversity not only benefits diverse businesses, it also benefits corporations and government organizations with supplier diversity programs in place. It provides numerous tangible benefits to the company, including increased market share, increased company flexibility, and greater competition among a company’s suppliers. Also, increased diversity in the supply chain allows a company to expand more easily into markets with different demographics.
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