{"id":16163,"date":"2022-12-23T14:20:39","date_gmt":"2022-12-23T11:20:39","guid":{"rendered":"https:\/\/k-house.in.ua\/?p=16163"},"modified":"2023-01-15T17:15:27","modified_gmt":"2023-01-15T14:15:27","slug":"why-do-you-need-a-supplier-diversity-program","status":"publish","type":"post","link":"https:\/\/k-house.in.ua\/en\/why-do-you-need-a-supplier-diversity-program\/","title":{"rendered":"Why do you need a supplier diversity program"},"content":{"rendered":"

What are 5 key steps to a successful supplier diversity program.\u00a0<\/span><\/h2>\n<\/div><\/div>

Many modern businesses are going an extra mile to ensure they are engaging in ethical and moral business practices. To help these efforts, more companies are leaning towards developing diversity, equity and inclusion efforts (DEI).\u00a0<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Many modern businesses are going the extra mile to\u00a0ensure they are engaging in ethical and moral business practices.<\/strong>\u00a0To help with these efforts, more companies are leaning towards\u00a0developing diversity, equity, and inclusion\u00a0<\/strong>(DEI) efforts, engaging in net zero initiatives, and pushing towards more sustainable sourcing.\u00a0One area that is gaining significant traction is supplier diversity.<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

<\/div><\/div><\/div><\/div><\/div><\/div><\/section>
<\/div>
\"CIPS<\/a><\/div>
<\/div><\/div><\/div><\/div><\/div><\/div><\/section>
<\/div><\/div><\/div><\/div><\/div><\/div><\/section>
<\/div><\/div><\/div><\/div><\/div><\/section>

Supplier diversity is a key topic that is having more of an impact on how companies do business.<\/strong>\u00a0Requiring more supplier diversity is essential for helping to create positive economic growth and expansion. Companies are also being encouraged to engage in greater social and ethical responsibility and businesses are open to the challenge.\u00a0A\u00a0recent Hackett study<\/a>\u00a0reported an expected increase in diversity spend goals of more than 50% by 2025<\/strong>. That provides a huge opportunity for suppliers who have historically not been part of the mainstream sourcing landscape. But, how can you build successful diversity program? Use the following steps.<\/p>\n<\/div><\/div>

<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

What is a supplier diversity program?<\/h2>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

A supplier diversity program is a company initiative that involves selecting suppliers from historically underrepresented groups.<\/strong>\u00a0This often involves choosing suppliers that are owned or operated by groups such as women, minorities, LGBTQ+, veterans, disabled communities. To qualify, the supplier needs \u00a0to have at least 51% ownership from the identified communities.\u00a0Supplier diversity programs have become essential for companies who are looking to expand their diversity, equity, and inclusion (DEI) efforts.<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

According to SpendHQ companies who are looking to undertake a supplier diversity program should use the following five steps to<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Step 1 : Build a business case for supplier diversity.<\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Supplier diversity programs provide many benefits for businesses, but it can sometimes be difficult to put those into tangible terms.\u00a0Diversifying your suppliers is a positive step toward greater equity and inclusion, which helps to \u201cInclusive procurement also delivers broader societal benefits by generating economic opportunity for disadvantaged communities<\/strong>,\u201d according to\u00a0Harvard Business Review.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Supplier diversity provides many economic advantages. Drawing from a wider pool of potential suppliers helps to promote competition which is a key factor in improving product quality and helping to lower costs.\u00a0A diverse sourcing strategy also helps to toughen supply chains, making them more resilient\u2014a spreading problem during recent economic uncertainty.<\/strong>\u00a0A supplier diversity program not only makes you more agile, but it also helps businesses meet broader moral and ethical standards.<\/p>\n<\/div><\/div>

Supplier management is an essential part of Diploma in Procurement & Supply Programme<\/a> of Chartered Institute of Procurement and Supply (CIPS, UK). The programme gathers skilled procurement experts who want to eploy international procurement standards and approaches. In Ukraine programme is held on House of Knowledge platform. Explore details<\/a> ><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Step 2 : Create a supplier diversity policy and identify diversity suppliers.<\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Once you\u2019ve achieved the necessary buy in for your supplier diversity program, you\u2019ll need to create policy to support it and begin the process of identifying which suppliers meet your needs.\u00a0Establishing a supplier diversity policy makes your goals known throughout your enterprise and solidifies your commitment to those goals.<\/strong>\u00a0It also provides a set of practices for your procurement team as they set about the sourcing process.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

The following elements should be outlined in your supplier diversity policy.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

<\/div><\/div><\/div><\/div><\/div><\/section>
[vc_cta h2=””]1.Identify why you need supplier diversity: <\/strong>Do your goals align with your DEI efforts and help to create resilience? Are you looking to create agility and expand your sourcing process. Whatever your goals are, state them concisely in your policy.[\/vc_cta][vc_cta h2=””]2. Document your requirements for a diverse supplier: <\/strong>What do you consider to be a diverse supplier? How do you define diversity? State your parameters directly in your policy so that procurement teams know what to target in the sourcing process.[\/vc_cta][vc_cta h2=””]3. <\/b>Outline your goals:\u00a0<\/strong>It\u2019s important that your internal stakeholders and procurement teams understand your goals. Clearly state what you are hoping to achieve and tie those goals to tangible KPIs.[\/vc_cta][vc_cta h2=””]4. State which processes, programs, and initiatives will help you to achieve your supplier diversity goals:<\/strong>\u00a0Will you restructure your procurement processes and enable a program to identify more suppliers? Will you provide training sessions to help your teams learn how to attract more supplier? Identify these opportunities and document them in your policy.[\/vc_cta]<\/div><\/div><\/div><\/div><\/div><\/section>
<\/div>
\"\u041e\u0431\u0443\u0447\u0435\u043d\u0438\u0435<\/div><\/div>
Explore CIPS Programme<\/span><\/a><\/div>
<\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Step 3 : Invest and nurture your supplier diversity program.<\/span><\/h3>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

After you\u2019ve outlined your policy, it\u2019s time to kick your supplier diversity program into action.\u00a0Identify how you will nurture and invest in your supplier diversity program to achieve success. You want to position your team for success and that will require an investment of time and resources if you want it to remain a sustainable effort in your organization.<\/strong>\u00a0The following tips can help you get started with your supplier diversity program.<\/p>\n<\/div><\/div>[vc_cta h2=”” color=”green”]\n