The Business Case for Supply Chain Sustainability Through Strategic Supplier Inclusion

Recent statistics show that companies with existing supplier diversity programs report increased profitability – sometimes as high as a 133% return on procurement investments.

This is due to the respected track record that companies which source small and minority-owned businesses have created leaner, sustainable, more innovative supply chains.

Where 99.9% of all U.S. firms are in the small business category, diverse businesses are often smaller, making them nimbler, faster and more efficient than larger counterparts.

Women- and minority-owned companies represent more than 50% of the total small business population.

With increasing population and business growth rates, it is crucial for larger corporations to establish strategic relationships with diverse employees, customers, and suppliers while building a supplier diversity programs.

Diverse procurement creates competition within the supply chain, encouraging suppliers to compete by innovating products and services and offering competitive prices.

As a long-term strategy, a diverse supply chain can yield many positive effects for companies.

When looking beyond finances to social responsibility, supplier diversity is often seen as a testament to a company’s commitment to producing a socially responsible impact in local communities.

Supplier diversity programs also meet customer mandates, leverage governmental initiatives and comply with federal supplier requirements.

By making strategic use of supplier relationships to reach procurement goals, organizations can maximize their supply chain potential.

In this whitepaper, you will discover:

• The competitive advantages of supplier diversity programs
• The evolution of supplier diversity
• Statistics on the growth of woman & minority owned businesses in the U.S.
• Demographic shifts impacting the supplier and consumer base
• The business case for supplier inclusion