According to The Hacket Group, “an intellectual property-based strategic consultancy and enterprise benchmarking” firm, 99% of diversity firms meet or exceed buyer expectations. In addition to the great news for supplier diversity professionals, research has also shown that corporations purchasing from diverse suppliers see an “increased market share and access to new revenue opportunities.”
While this is exceptional news to the supplier diversity community, I do want to point out that, from reading the SDCEXEC article, much of the success of an organization’s supplier diversity program depends on its support. In summary, the more internal support the program has, the better it will do. Although a simple concept, the internal support is vital for organizations to gain benefits from it. An excerpt from the article should give everyone a good idea of what it means to be successful:
To truly unlock the full potential benefits of supplier diversity efforts, The Hackett Group recommends that companies consider expanding beyond traditional goals, such as complying with regulations. Top performers in supplier diversity recognize the value of objectives such as the ability to gain access to new markets and improve supplier partnerships. In addition, companies should look beyond basic measures, such as the percentage of spend with diverse suppliers, and calculate the true value of supplier diversity by using more sophisticated performance metrics, such as satisfaction levels, and other secondary metrics that are aligned to long- and short-term plans and objectives.
A commitment to the program and willingness to go beyond the basics in goal setting and metrics are key. But in the long run, diverse suppliers are simply suppliers who are looking for opportunities to succeed. There is no added cost for creating opportunities for suppliers whatever their race or gender. If organizations want the best quality and the best cost, the including as many qualified suppliers as possible will result in the best outcomes.