The Proven ROI of Supplier Diversity

Bill Dugganamp160 How do you define supplier diversitySimona Rabsatt Butleramp160 Supplier diversity is a business strategy that encourages a diverse partner ecosystem in the procuring of goods and services that support the fiscal and business goals innovation growth and evolution of any businessamp160 Supplier diversity strategies encourage the use of companies that are 51 percent owned and operated by a woman ethnic minority veteran person with a disability or a member of the LGBT communityDugganamp160 What segments does supplier diversity typically coveramp160 Are there any emerging segments now being coveredRabsatt Butleramp160amp160Diverse partners can be found in a myriad of markets andor business areasamp160 The challenge is often finding them andor their ability to manage the size and scale of most large companiesamp160 Just like areas of business there are pockets of industries that have little or no diversity but there are opportunities to diversify if we think about things differently and consider joint venture opportunitiesamp160 Wherever there is growth new ideas and innovation there is sure to be a diverse supplier in the mix or on the horizonDugganamp160 Does supplier diversity have proven ROIamp160 If so how do you knowRabsatt Butleramp160 It does and each company measures that ROI differently based on their businessamp160 Whether first tier direct or second tier indirect spend measuring is a part of the strategyamp160 Ernst ampamp Young shared a study where 54 percent of companies claimed a quotstrong linkquotamp160between supplier diversity and new business developmentamp160 Companies with diverse partner business strategies claim around 36 million in reinvestible funds for their company bottom lines for every 1 million spent in procurement costsamp160 The return on cost ROC generated for procurement operations by diverse partners over average partner performers EY reported as 133 percent amp160Second tier spend is an evolving ROI measurement and conversationamp160 For partners that provide goods or services there can be a direct link between a company39s supplier diversity strategy and a partner39s ability to win businessDugganamp160 Is supplier diversity typically led by sourcing or the multicultural marketing team or bothRabsatt Butleramp160 Different companies have this team andor lead in either of those business areas or they can sit within the diversity and inclusion team that may sit within an HR group or on its ownamp160 I sit within the accounting team within a centralized procurement teamamp160 I have a dual function leading marketing procurement and supplier diversityamp160 I connect crossfunctionally with team member resource networks Hispanic marketing effortsamp160and othersamp160 I aim to work this strategy into the cultural footprint of the company39s DNAamp160 By doing so it becomes an important business strategy that can become an assessment factor for potential team members giving our business another element to attract top talentDugganamp160 Today many ANA member companies are challenged with the diversity of their own internal teamsamp160 Why is it important then for ANA members to also be concerned about the diversity of their suppliersRabsatt Butleramp160amp160ANA member companies should be concerned about it allamp160amp160diversity andamp160inclusion multicultural marketing and supplier diversity What it means to be diverse is everchanging in our society and that change equates to your consumeramp160 The browning of America majority minority by 2041 multiethnic unions polyculturalism the state of America today it all matters and it matters to a company39s bottom lineamp160 I can39t say it any better than PampampG39s Marc Pritchardamp160quotIf you are not doing multicultural marketing today then you39re not doing marketingquotamp160 It is the cycle of company successamp160your company should reflect your consumer in as many ways as possible employees partners product advertising etcamp160 Plus when you support a diverse businessamp160you are supporting your communityDugganamp160 Are there any unique considerations for supplier diversity in marketingRabsatt Butleramp160 I see supplier diversity as I see hiring diverse talentamp160 We all have unique and individual qualities backgrounds knowledge experience etc that make us who we are but core skills against a job or service is the level playing fieldamp160 I either have the skill or service you need or I don39tamp160 I either can manage your scale or I can39tamp160 My diversity shouldn39t matteramp160 I think today companies are looking for the next big thing but aren39t taking a moment to determine if they are overlooking a potential win for growth and evolution by diversifying in the multitude of ways you define diversityamp160 I may over simplify yet if I have the skill or service you need hire me and compensate me fairlyamp160 If I don39t figure out if there is a way to help me grow and evolveamp160 Let39s find ways to measure the ROI understand what discounts or added value I bring to the table and let39s grow and innovate togetherClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

The Proven ROI of Supplier Diversity

Author

Publish date

Channel

Bill Duggan

Jim Lecinski | Clinical Marketing Professor | The Insomnia Cookies Case - The GOST Model Taught at Northwestern - By Mike Linton

More Videos:

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

The Proven ROI of Supplier Diversity

Enjoying This Commentary? There's More to Love

Bill Duggan

Jim Lecinski | Clinical Marketing Professor | The Insomnia Cookies Case - The GOST Model Taught at Northwestern - By Mike Linton

The payment was successful

Cookies