Advancing diversity within the supply chain: Building digital pathways to inclusive procurement practices

Diversity and inclusion in the supply chain is an interesting topic. Throughout an enterprise, there is a social responsibility to promote equality in all teams, but the numbers show there is a causal connection between DE&I initiatives and successful procurement teams. 

The social responsibility and corporate goal of achieving a diverse, inclusive, and equal supply chain are becoming intertwined. In this blog, we will explore what a diverse equal, and inclusive supply chain looks like, why it’s becoming increasingly important, and how Scanmarket by Unit4 can advance diversity within your supply chain.

What is Procurement’s role in promoting diversity and inclusion?

In the United States, there are more than 15 categories used to identify diverse businesses such as including minority-owned, women-owned, veteran-owned, disabled-owned, and LGBTQIA+-owned enterprises within the supply chain. Pioneers in this area include Coca-Cola, UPS, Delta Airlines, and IBM. 

By promoting these traditionally excluded groups large enterprises can manage their corporate reputation, drive corporate social responsibility, and help invest in diverse communities by driving capital there.

What are the benefits of a diverse supply chain?

Of course, enterprises across the globe see diversity, equality, and inclusive initiatives to be part of their social corporate responsibility. Naturally, this creates a much more inclusive internal work environment and has the benefit of boosting employee engagement and satisfaction which can have its own effect on profits. 

Organizations with diverse supply chain chains can attract more investors and customers to the enterprise at large, willing to take more of a chance on enterprises that are champions of diversity and inclusion. 

Large enterprises often struggle with a local reputation, but diversity and inclusion initiatives naturally lead to more engagement with local communities among individual business units, showing that these large enterprises are more than just a corporation. 

Coca-Cola presents an interesting case, as a result of previous diversity and inclusion initiatives customers were 49% more likely to use their products, 45% were likely to perceive them as a brand that values diversity, and 25% were more likely to view the brand favorably.  

On estimate, 670,000 consumers were more likely to use Coca-Cola products, and the effects of this on their bottom line are obvious.  

Those championing diversity, equality, and inclusion in their supply chain can use this as a competitive differentiator with customers, investors, and more. Additionally, the stats show consumers are more likely to side with a brand or enterprise that has a demonstrable DE&I initiative.

What are the challenges affecting DE&I initiatives in procurement?

Sourcing and tendering diverse suppliers can require some vetting and with manual operations this can take up a lot of time. Procurement teams need to set parameters for suppliers to ensure they are engaging with the right supplier in their tendering process, but recording and auditing this process can take some time manually. 

When DE&I initiatives fail it’s often to do with poor reporting and tracking, investors or consumers may see a DE&I initiative as simply a ‘tick in a box’ process without providing the necessary numbers and reports to demonstrate their success in rolling out these initiatives. 

Importantly, without clear visibility of spending habits and their bottom line, it may not be obvious to an enterprise how much resources they have to dedicate to DE&I initiatives, leading to poor planning and potential misuse of finances.

How can Scanmarket by Unit4 create digital pathways to a diverse supply chain?

Scanmarket’s approach to enabling a diverse and inclusive supply chain is threefold, streamlining the engagement of diverse suppliers, the management of DE&I initiatives in procurement, and the ability to spend confidently through data visibility.

Engage 

Scanmarket’s eRFx solution can enable procurement teams to set specific parameters within your requests for information that ensure you are reaching the diverse suppliers you wish. This also enables a fair and transparent process that enables diverse suppliers to compete on a level playing field. 

Scanmarket’s eAuction platform means enterprises can facilitate real-time bidding among a range of suppliers, without creating unmanageable workloads. eAuctions can be structured to prioritize or give weight to suppliers that meet specific diversity criteria, further encouraging the inclusion of underrepresented suppliers. 

Manage 

Our Supplier Management solution can provide the visibility of your current suppliers, helping you to evaluate where initiatives can have the most effect. The module offers insights on spending patterns with suppliers, helping organizations measure the impact of their diversity initiatives and make informed decisions to sustain and grow these relationships. 

This not only enables organizations to effectively track and evaluate the performance of suppliers, ensuring that they meet the company’s quality, compliance, and ethical standards, but it also allows your procurement teams to identify and engage with a broader range of suppliers. 

Spend 

Scanmarket’s Spend Analytics module is the key to performance tracking and analysis of expenditures with diverse suppliers. 

You can identify opportunities to increase spending with diverse suppliers easily thanks to data visibility. This allows organizations to monitor their progress toward diversity initiative goals, ensuring they aren’t just set in motion but can be actively measured and refined. 

To learn more visit our dedicated product page, customer stories, or talk to sales– today!