Why A Supplier Diversity Program Will Benefit Your Business
You may be asking yourself, “What is a Supplier Diversity program? Supplier Diversity is a program designed to promote, increase and improve the participation of businesses considered diverse within a company’s supply chain. There are many categories used to identify “Diverse Businesses,” but the more common examples are Minority-Owned Business Enterprise (MBE), Small Business Enterprise (SBE), and Woman Business Enterprise (WBE). For an organization to become a “Diverse Businesses,” they have to be certified through third-party bodies who authenticates that the company is managed, owned, and controlled by a diverse qualifying group.
Most organizations commonly think Supplier Diversity is a program designed to contribute to society and has no value and adds little to the bottom line. The reality is that a competitive advantage exists and below you will find some of the benefits of choosing the right loyalty and incentive technology provider for your company.
Supplier Diversity can save your business money
An article from The Wall Street Journal cited research by the Hackett Group who exposed that the operations costs of these organizations are frequently lower. They spend an average of 20% less on their buying processes, and the number of their procurement stuff is lower, what allows them to pass their operational cost savings to you: the end client. The next time you are purchasing VISA prepaid rewards, gift cards, merchandise or travel to incentivize your participants you need to consider a supplier who is aligned with a similar philosophy.
Supplier Diversity gives you access to new business opportunities
The companies that take the time to properly execute a supplier diversity program can discover a whole new market and find new customers. Businesses can benefit from vendor certification bodies like the Women’s Business Enterprise National Council who often hold affairs for networking and nurturing business opportunities in between the companies that are looking for supplier diversity and “Diverse Businesses.”
Supplier Diversity reflects and raises your corporate values
Because population is shifting, companies are starting to understand that diversity and inclusion is critical for the culture of business, when your business can help a diverse business grow and be successful it puts your business in a very favorable position and your exposure increases as you get out to industry events to look for potential new suppliers. Having a supplier diversity program is one way to demonstrate to your employees and customers that your company is truly concerned about diversity and inclusion.
Supplier Diversity connects you better with your customer and partners
Companies that hire “Diverse Businesses” vendors frequently find themselves having clients who also do it. What if your most significant customer initiated an outstanding supplier diversity program? Corporations want to know that their strategic business partners are aligned with their values.
Is this not enough to take action? Consider these benefits:
- A larger, more diversified supply chain reduces risks.
- A diverse range of suppliers promotes innovation through the entrance of new products, services, and solutions.
- Diverse suppliers often have less hierarchy, so they are more flexible, more efficient and faster at delivering goods or services.
Supplier diversity programs endorsed by a robust and solid support network, small, women and minority business show their real business value by hiring “Diverse Businesses” it is not longer an act of charity. Now is time for the companies to change their perception and realize how beneficial supplier diversity can be for their business.
For more information on how a supplier diversity program will benefit your business call us now at 866-415-7703