There are several ways supplier diversity can help businesses of all sizes minimize the impact and recover from the coronavirus pandemic. Access to customers and vendors is very important to survive the current crisis. For small businesses, having customers who will purchase goods and services significantly improves their chance of survival and potential for growth.
For Fortune 1000 companies, diverse suppliers can provide them with innovative products and services, increase competition which can lower prices and improve service levels and allow them to serve untapped and emerging markets.
The recent Supplier Diversity Impact Indicator (SDII) released by Hootology revealed that supplier diversity can improve the perception of a brand that values diversity. Hootology founder Stefanie Francis explained that supplier diversity increases a brand’s score in different metrics by 25-70%. As an example, those who are aware of the supplier diversity initiatives of UPS are 86% more likely to use the company’s services than those who are not aware of it. Francis added that every one-point increase in awareness is equivalent to a 2.5 million increase in the number of people who will have a positive view of a brand. But only 4% of the general public are currently aware of supplier diversity programs.