The world is changing at a fast pace, and that change is always welcomed in the business world. It is not only welcomed, but it has become a rule in many developed countries around the globe to make supplier diversity a necessity. It is important to build a steady buyer-supplier relationship , but having a diversity in your suppliers is almost as important. By incorporating supplier diversity programs big companies are helping small and medium businesses expand! But, first, let’s get familiar with the basics?
What Is Supplier Diversity?
Supplier diversity is a business strategy that involves incorporating suppliers that belong to different gender, race and profile in a company’s products and services acquisition. Supplier diversity offers the same chance of success for these small and medium businesses to grow and prosper like the other companies on the market.
Does My Company Have the Supplier Diversity Requirements?
To become qualified to participate in supplier diversity programs, your business must be certified as the following
- The company must be at least 51% owned and managed by one or more women.
- The company must be at least 51% owned and controlled by one or more individuals who are part of minorities.
Moreover, different programs add more depth to their supplier diversity requirements. It all depends on the country your business is located.
Why Supplier Diversity Brings More Profit for Your Venture?
As the world turns a new page, many people and businesses refuse to accept those changes and stay ignorant. We see it everywhere – on the news, on social media, people talking in restaurants. It is one of the most talked about issues in the western world. If a company accepts supplier diversity and adds suppliers with different backgrounds to their list, it sends a powerful message to the whole business community. That attention boosts its reputation and creates new business opportunities.
Supplier Diversity Statistics
On average, every year supplier diversity programs bring millions of dollars as a return investment. The Atlanta-based Hackett Group study showed that companies who incorporate supplier diversity reporting more than 133% increased ROI more than the companies who do not. Moreover, supplier diversity statistics also show that companies who partake of these programs spend 25% less on operations than companies without supplier diversity programs. Not only that, but the market value of SD companies 1.5-2 times bigger as well.