Improving diversity and inclusion is a key goal of most organisations these days, and it can yield a range of benefits from improved recruitment, increased innovation and enhanced brand reputation. Purchasing from a diverse supplier base can not only help you in terms of compliance but also provide access to new products and services and bring cost savings.
1. Gain executive support for an inclusion and diversity plan
The right tone needs to be set at the very top of an organisation and this can be done with the help of good procurement leadership. Seek to gain executive support across the business for your inclusion and diversity plan. Those at the very top levels must want to encourage diversity and inclusion and clearly communicate this at all levels of the business. Procurement teams have the most comprehensive view of the corporate ecosystem. They should lead in efforts to source partnerships and relationships which support diversity, but this must be sponsored by executives at the top. Top-down communication surrounding the importance of supplier diversity will help with buy-in at all levels.
2. Invest in resources dedicated to the cause of improving diversity and inclusion
Investing in resources dedicated to the cause of improving diversity and inclusion will help to ensure success in this area. Consider nominating individuals within the company who are dedicated to sourcing suppliers that support diversity goals. To maximise success in this area, create a small team of two to three people who work full-time sourcing diverse suppliers. If you are a large organisation, you may need up to five people fulfilling this role, whereas one or two may suffice for a smaller company. The key is to invest in talented people capable of advancing your diversity vision. As well as human resources, you should also invest in the right technologies to help you manage data on diversity and build effective relationships with suppliers. Consider using supplier sourcing and tracking tools for this.
3. Be proactive in expanding your diverse supplier network
Successful diversity initiatives depend on proactive steps being taken to build diverse supplier networks. Your dedicated team should be taking every opportunity to improve and expand access to diverse suppliers. A good step towards this is to join and participate in industry groups and associations. Here, you will be able to learn from others and share best practices in this area.
4. Set clear goals around diversity and inclusion
Setting clear and realistic goals for increasing supplier diversity will provide you with something concrete to work towards. Studies have shown that goal setting in this area leads to improved outcomes. Companies that set internal goals for supplier diversity can manage to source up to twice as much from suppliers owned by members of protected classes than those without clear goals.
Having clear goals helps you define the right metrics to measure your progress in this area over time, adjusting your approach if needed.
5. Hold yourself publicly accountable
Consider sharing your progress, in terms of diversity and inclusion, regularly with both internal and external stakeholders. This will help you create accountability, demonstrating and reinforcing that diversity is a priority to the organisation.
Share your diversity goals publicly, as this will motivate you to drive towards greater success in this area. This can be done in company newsletters, on the website or on social media pages.
Try these five steps to help you improve diversity and inclusion as part of your procurement management strategy. Success in this area will help you improve brand reputation, increase innovation, remain compliant and potentially reduce costs, amongst other benefits.
Wrap Up
Do you want to know more about what it takes to become a good procurement leader within your organisation? Then, why not consider studying for a CIPS professional qualification.
For more information on our range of CIPS courses and how to get your two-week free trial, visit our website.