- Consumers who perceive a brand as committed to diversity are 3 times more likely to consider the brand’s products/services compared to those who do not.
- Consumers who perceive a brand as committed to diversity are 3.5 times more likely to purchase the brand’s products/services compared to those who do not.
- An increase in awareness of a brand’s Supplier Diversity Program of just 1% will lead to an additional 800,000 U.S. consumers using the brand’s products/services.
- Nearly 70% of employees and job seekers say a diverse workforce is an important factor when evaluating companies and job offers, New Hope Network
- Companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have long-term value creation.
- Companies with the most ethnically and culturally diverse boards are 43% more likely to experience higher profits.
IntelliTrans Takes Supply Chain Diversity Seriously
5 Ways to Foster Diversity in Supply Chain
1. View DEI as a value driver for your organization.
Much like environment, social and governance (ESG) doesn’t have to be a cost center for your company, DEI doesn’t have to be either. In fact, it can be a value driver. In Forbes, Insight Sourcing Group’s Rod Robinson writes about how having a diverse supplier base can provide access to new customer markets. By developing a supplier diversity strategy, vision and roadmap, for example, one company uncovered a significant new revenue opportunity via a partnership with a diverse supplier. That supplier provided access to a federal contract that required more capacity than the diverse supplier could provide alone. “This is a great example of connecting the dots between the value of supplier diversity and market share growth,” Robinson writes.
2. Know where your money is being spent.
If your organization spends $150 million annually across a handful of major categories, you can use that information to refocus your diverse supplier inclusion efforts. “During this process, you may discover opportunities to enhance existing diverse supplier relationships that drive increased profitability,” Robinson says. “There are data classification/enrichment technology and tools that aid in the process of identifying suppliers by diversity status (minority, woman, etc.).”
3. Train leaders on the value of DEI.
Show leaders specific, concrete examples of how inclusive behaviors can be embedded into general leadership behaviors, rather than teaching inclusivity as an isolated skill. “To truly sustain behavior change, embed bias mitigation efforts into existing processes (e.g., succession management),” Gartner says in its DEI report. “Making small tweaks to processes helps nudge leaders away from unintentional biases and prompt inclusive behavior.”
4. Don’t rush it.
Start with a strong foundation and find ways to authentically integrate DEI into your supply chain operations. This may mean working harder to buy from a more diverse supplier base, hiring a more diverse workforce to run your supply chain operations or another related goal. Think beyond “lip service,” ask employees for their ideas and get management onboard with the effort.
5. Prepare to make mistakes.
When trying to be more diverse and inclusive, be prepared to make mistakes. “It’s important to understand you will mess up,” diversity training expert Nikki McCord tells New Hope Network. “Have a strategy in place and figure out what you’re going to do when you inevitably mess up.” Brace yourself for feedback, consider how you’re going to build upon that input and also how you’re going to deal with problems as they surface.