Does supplier diversity programs help your business?

I would have to say yes; this is what Eddie Hill Consulting Group specialize in as a business; including business development and economic development for small businesses.

We have to date created over 20 supplier diversity programs and initiatives for corporations, municipalities and organizations (chambers and colleges).

Here’s the facts about Supplier Diversity Programs:

Supplier diversity is a proactive business program encouraging the process of sourcing supplies from minority-owned, women-owned, veteran-owned, LGBT-owned, service-disabled veteran-owned, historically underutilized businesses, and SBA-defined small business vendors.

Supplier diversity is a best practice that should be instilled in every organization. Not only does it benefit the community around you, it also provides a distinct competitive advantage for businesses.

If a company continually use the same suppliers without branching out into new, diverse markets, their risk stymieing the creative benefits you should be receiving. We should encourage new small and medium-sized businesses because they bring along the added innovation advantages, differentiating themselves from their competitors. Small businesses, unlike their larger counterparts, are more agile and can create and innovate quickly. I have always used the term “value added service”, this is what these businesses bring in the way of innovation.

Procuring a large database of suppliers from which to source, opens the opportunity to create scenarios that involve multiple suppliers for one sourcing event. This allows you (the buyer) to promote and engage several suppliers while simultaneously reducing the overall cost of the product/service.

Additionally, multiple channels also allow a company to analyze the prices, location, and range of goods of several suppliers and choose the one that works best for them. A final benefit to having multiple channels is the volume of opportunities created by forging new relationships with suppliers’ alliances.

The answer is “yes”. Over the last 20 years we have seen these small businesses grow and prosper from companies who truly embrace the idea of having a supplier diversity and inclusion program in place.

The only way these programs work is to have total commitment throughout the organization that is goal driven. It must have the full support of top management with oversight from the president and chief executive officer of the organization. There must be accountability and measurable goals that are charted and reported.

Eddie Hill, Eddie Hill Consulting Group, LLC