Over the past few years, large enterprises have made incremental progress toward a more diverse supplier ecosystem, but we’re still not there. A recent survey of 100 large global companies by The Hackett Group found these companies intend to increase spending on diverse suppliers by over 50% during the next three years. While these commitments are a start, DE&I initiatives are empty without a plan.
Diversity and Inclusion
Social justice movements have been powerful catalysts for change in recent years. As these movements have gained in momentum, they have not only raised awareness of inequality and discrimination, but also set an expectation for change and transparency with the right to question injustice and seek remedy. As a result, diversity in governance and leadership is taking center stage in corporate mission statements and employee value propositions.
Supply chain professionals have gone from working behind-the-scenes to being in one of the most talked about industries of 2021. With limited labor, increasing disruption and surging production and shipping costs causing shortages around the globe, exploring a career in sourcing and procurement has taken on new meaning as the field becomes more critical and complex than ever before.
Environmental, Social and Governance (ESG). It’s not a new term: its origin dates back several decades, but it has gained increasing importance in recent years.
While everyone around the globe has become aware of the focus on diversity and inclusion, not everyone has embraced or welcomed it. Some are deliberate and vocal about expressing dislike of these necessities at work, school and in our communities. Others are quietly against it but raging inside, rallying against diversity and inclusion, both consciously and subconsciously.
COVID-19 resulted in over 20.5 million jobs lost in the U.S. alone. As the economy recovers, workforce participation is at an all-time low, falling to 61.2% in March 2021, the lowest it's been since 1976. Unemployed, laid off and furloughed workers that do return to the workforce do so with a fundamental shift in the mindset, impacting how and where work gets done.
Supply chains that take advantage of diverse suppliers are often cited as being more agile, resilient, innovative, and sustainable. They are credited for promoting consumer trust and driving competition.
So far in this series on diversity and inclusion, we have explored a historical perspective on supplier diversity in the enterprise, tips to improve it, and how the supplier community can leverage their diversity status. Now we will discuss how procurement leaders can incorporate diversity and inclusion into their team management strategies.
With a pandemic, a recession and protests over racial injustice, the need for more equity and equality is ever-present. Diversity and inclusion (D&I) initiatives have generated increased momentum among contingent workforce program leads.
To continue the previous conversation on diversity and inclusion (see my other articles on the enterprise approach to supplier diversity and how to shape the future of supplier diversity), I’d like to look at the other side of the coin: What can suppliers do to help enterprise clients improve their diverse supplier inclusion, selection an
My last article was an overview of how large enterprises have historically approached supplier diversity initiatives and why they have underperformed.
This article will focus on ways the enterprise can improve diverse supplier inclusion, selection and support practices. I recommend that teams consider leveraging some of these tips best fitting for their respective organizations.