In the current news of European procurement, supplier diversity has become a cornerstone for fostering innovation, economic growth, and social equity. Integrating supplier diversity into procurement training programs is essential for professionals aiming to build resilient and inclusive supply chains.
The Significance of Supplier Diversity
Supplier diversity involves actively engaging suppliers from various backgrounds, including minority-owned, women-owned, and veteran-owned businesses. This approach offers several benefits:
Innovation: Diverse suppliers bring unique perspectives and solutions, fostering creativity and competitiveness.
Economic Empowerment: Supporting underrepresented businesses contributes to economic development and social equity.
Integrating Supplier Diversity
To effectively incorporate supplier diversity into procurement practices, training programs should focus on:
Awareness and Education: Educate procurement professionals on the value of supplier diversity and its impact on organisational success.
Policy Development: Guide teams in creating and implementing supplier diversity policies aligned with corporate social responsibility goals.
Supplier Identification: Train professionals to identify and assess diverse suppliers, utilising databases and networking events.
Relationship Building: Emphasise the importance of building strong relationships with diverse suppliers through effective communication and collaboration. Performance Metrics: Establish metrics to monitor and evaluate the success of supplier diversity initiatives.
Case Study: Successful Implementation in the EU
A notable example is a multinational corporation that integrated supplier diversity into its procurement training. By doing so, they increased their spend with diverse suppliers by 25% over three years, leading to enhanced innovation and market reach.
AstraZeneca, a leading multinational pharmaceutical company, has effectively integrated supplier diversity into its procurement training and operations. Central to their strategy is the recognition that every procurement decision impacts society and people. The company focuses on leadership support, clear goals, key performance indicators (KPIs), and effective tools and processes to achieve these objectives. Supplier diversity is integrated into every stage of procurement, involving strategic planning and operational execution.
AstraZeneca’s procurement is centrally led, managed through categories to support business and market needs. The supplier diversity program, part of the global procurement strategy, collaborates closely with the entire procurement and business community within the company. This collaboration enables the embedding of supplier diversity in global, regional, and local procurement processes.
Key measures include setting targets and action plans in each category strategy to maximize spend with small and diverse businesses and participation in mentorship and outreach events. In sourcing, AstraZeneca ensures that diverse suppliers are included in requests for proposals, providing them equal opportunities. Its contracts and business review processes include supplier diversity expectations, promoting diversity through larger business partners.
Each operational market of AstraZeneca has specific goals for including diverse suppliers. Its robust infrastructure records the diversity status of suppliers during vendor onboarding, enhancing their visibility and usage. They also offer shorter payment terms for small businesses in regions with established supplier diversity programs.
This comprehensive approach has led to a significant increase in AstraZeneca’s spend with diverse suppliers, enhancing innovation and market reach. The company’s commitment to supplier diversity not only fosters inclusivity but also drives business success by leveraging the unique perspectives and capabilities of diverse suppliers.
Embedding supplier diversity into procurement training is not just an ethical imperative but a strategic advantage. It equips professionals with the knowledge and skills to build inclusive supply chains that drive innovation and economic growth.
Sources:
- Black women entrepreneurs hit hard as U.S. companies axing diversity programs – Reuters
- NHSGCC Procurement Leads the Way in Increasing Supplier Diversity – Supplier Development Programme
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