Insights

DRIVE: SUPPLIER DIVERSITY PART ONE

Supplier diversity should be considered part of a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organisation. It emphasises the creation of a diverse supply chain that works to secure the inclusion of diverse groups in the procurement plans for the private, public and third sectors.

Research shows that companies who are embracing diversity are more profitable than companies that don’t. One study confirmed that in 2015, on average, supplier diversity programs add $3.6 million to the bottom line for every $1 million in procurement operation costs. The high return on investment (ROI) is undeniable; a positive ROI that boosts socially conscious reputation should push supplier diversity to the forefront of business strategy.

The third original DRIVE research report is named “Supplier Diversity Part One: When and where to get started”. This topic was specifically highlighted by the DRIVE network as most were failing to meet their diversity objectives in auditing and managing effective diverse supplier networks across all tiers. The qualitative research was conducted by speaking with over 45 senior Procurement, Diversity and Inclusion, HR and Operations professionals.

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