Diversity, equity and inclusion is today’s corporate zeitgeist, currently influencing everything from consumer choice and employee engagement to a company’s reputation and industry rankings. And supplier diversity is foundational to a company’s success in the diversity, equity and inclusion space.

While initiatives around diversity and inclusion are, fundamentally, the right thing to do, the benefits of a diverse supplier base extend well beyond the social good. Building a diverse supply chain can lower operating costs, reduce supply-chain disruptions and drive innovation among employees and key stakeholders, which means developing an in-house supplier diversity program is the smart choice to strengthen and grow your business in today’s economic climate. Expanding your network to include a wider range of small, disadvantaged, minority- or women-owned businesses may be much easier than you think. Here are a few essential strategies to support you on the road to a more robust, inclusive and reliable supply chain.

For small, diverse and disadvantaged businesses, meeting these suppliers where they are is often integral to their success. That’s why the most effective supplier diversity programs will reflect a range of initiatives designed to bolster the financial, educational, technological and social reach of those partners who are vital to your organization’s success. Examples include:

• Outreach, advocacy and educational offerings. One of the best ways to grow your diverse supplier network — and your knowledge base — is by taking advantage of the many conferences, networking events, workshops and matchmaking sessions centered around supplier diversity. Successful supplier diversity programs will also engage in mentorship pairings, local activations, influencer collaborations and public policy work, as well as pursuing memberships with leading organizations working to advance diversity across the supply chain.
• Matchmaking technology to easily identify diverse suppliers. Using the publicly available supplier portal, www.supplierinclusion.com, companies everywhere are empowered to find, select, engage and direct spend to thousands of diverse and inclusive suppliers around the globe. By leveraging this free technology, your business can quickly generate new leads and opportunities in the diverse supplier space.
• Infrastructure to monitor, measure and maintain progress. We know that what gets measured gets managed, and this is certainly true in the supplier diversity sphere. Whether you have the reach and resources to hire staff dedicated to supplier diversity or are a small business looking to target your advertising spend to attract more diverse audiences and reach new suppliers, the right tools and technology to track your progress are an essential investment. For those just beginning their supplier diversity journey, measuring the breakdown of your spend among suppliers — and then setting a goal to increase your diverse supplier spend by a certain percentage — is a great place to start.
• Modified payment terms and insurance requirements. Consistent cash flow is essential to the strength of a small business and adopting flexible payment terms for eligible suppliers — coupled with amended insurance caps, where applicable — can provide the leg up that many small and diverse suppliers need to establish a presence in the global marketplace.

As with any critical initiative, leading from within is key. Community and continuity are both essential when working toward lasting change, which is why it’s so important to cultivate an internal culture focused on engaging and onboarding new diverse suppliers, seeking out opportunities to drive inclusion and supporting other DEI efforts across your organization.

• Launch an internal awards series. Celebrating internal wins is a great way to inspire new agents for change and recognize individuals and team members who are going the extra mile to do the right thing.
• Create internal resource groups. Team member resource groups are a powerful way to build a culture of inclusion and connection, providing protected space for employees to connect with peers who share commonalities around age, ethnicity, gender, sexuality, abilities and interests.
• Offer incentives for inclusive actions. Whether you implement a “finder’s fee” for employees who introduce a new diverse supplier to your organization or reward your team members for supporting local businesses on Small Business Saturday, you can demonstrate your company’s commitment to inclusion through tangible incentives.

Wherever you are on your supplier diversity journey, it’s essential that you identify and take next steps to keep your efforts in this space moving forward. Your competitors aren’t waiting, and your customers are watching, which makes maintaining momentum around this work vital. And for smaller organizations that may be newer to the supplier diversity conversation, remember that the best way to get ahead is to get started.

Ultimately, whether you represent a global brand serving customers in countries around the world or are the sole proprietor of a small, locally rooted enterprise, it is incumbent upon all of us to do the work to create a professional and industrial landscape that more accurately reflects the myriad cultures and communities we serve.

Anu Saxena is the president and global head of Hilton Supply Management.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

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