These two phrases seem to be all the rage today, whether it’s on the nightly news or in local community circles – diversity and inclusion. Suddenly, emerging out of the ashes of the COVID pandemic have come global concerns for certain demographic targets including minorities, women, veterans, members of the LGBT community and people with disabilities – and these concerns are moving into the supply chain sector, where individuals are discovering that the establishment of diverse supply chains can help foster an equitable economic recovery in these inflation-riddled times.
But is it actually true, when we really study it, that acquisition can strengthen Diversity, Equity, and Inclusion (DEI)? In this article, we’re going to take a closer look at this possibility.
During iQuantum’s time in existence, our representatives have witnessed firsthand the value of more diverse and inclusive corporate supply chains. Between our global management consultants, corporate acquisition executives and acquisition software entrepreneur advisors that have come and gone in the company, one thing was always agreed upon: diverse and inclusive supply chains are more competitive, possessing the ability to unlock innovation, provide access to new markets and deliver socioeconomic impact amongst local operating markets.
So if there’s truth to the notion that procurement, or acquisition, can bolster DEI, in what ways does it do so?
To begin with, supplier DE&I initiatives can make a significant difference to companies’ revenues and to communities at large, firstly because consumers are three times more likely to purchase a product or service from a brand they perceive to be committed to D&I, and secondly because – according to analyst– directing one million dollars in acquisition spending toward diverse suppliers has the potential to create as many as 10 new jobs. These jobs, in return, drive at least $124,000 in economic impact via tax revenues, helping to foster local communities where the suppliers operate.
Further, developing a workplace in 2022 and beyond that embraces and nurtures individuals of different races, ethnicities, genders, sexual orientations, religious beliefs and backgrounds can result in several business-related benefits across departments – including enhanced levels of innovation and better revenue performance.
A good place to start is to get a baseline on the current Tier 1 and Tier 2 Diversity Spend. A clear report on current Diversity Spend, even if it is high-level, will provide a sense of where your organization is at right now. Next set up the tools and processes to provide ongoing tracking and additional detailed breakdowns and analysis against goals. The ability to track Diverse Spend by Category, by Certification, by Geography will all help understand the opportunity to have positive impact on the DEI that matters most to your organization.
iQuantum Fun Fact: According to an article in Harvard Business Review, ongoing efforts to build more diverse and inclusive workplaces even have an impact on macroeconomics, as a positive relationship between diversification and the value of goods and services produced in the U.S
Thankfully, there are some concrete steps acquisition departments are taking to improve the diversification of their teams, one of the most popular being the launch of internal DEI initiatives alongside other efforts such as supplier diversification programs.
To learn more about the ways iQuantum is bringing organizations into the future of supply chain management, visit www.iquantum.ai.