Diversity in the supply chain is an increasingly important topic for large buyers. While we looked at ways to promote supplier diversity and overcome related obstacles in previous posts, we want to address a number of trends in this field to keep your eye on.
While certain stakeholders may still have their reservations about supplier diversity, the numbers speak for themselves. That’s why it’s not surprising that there is a focus on data, both in terms of tracking and reporting. Over 60% of businesses have indicated that they rely on third-party providers to ensure accuracy of the data. Areas that are commonly monitored include the amount spent on diverse suppliers, cost savings, innovation and the impact on communities. These are just some of the metrics that investors and regulators have come to expect that companies disclose, and this requirement for transparency is certain to continue.
At one time, there was a concern that supplier diversity and environmental, social and governance (ESG) programs had to compete for attention. However, it is becoming more and more accepted that these objectives go hand in hand. For example, supporting businesses owned by marginalized groups is a clear way of creating greater social equity. In terms of the environmental aspect, diverse suppliers often have less of a negative impact due to being closer to their partners and production. And as they also tend to be smaller, their governance is more responsive to labour disputes and wage issues. With the acknowledgement of their similarities, we can expect supplier diversity and ESG initiatives to be even more closely intertwined.
Like many aspects of business, supplier diversity is being transformed by the rise in AI and other technologies. This includes software that assists in selecting, tracking and assessing suppliers based on a variety of criteria. The result is greater efficiency and transparency and less bias when it comes to procurement decisions.
As mentioned in our post about challenges associated with supplier diversity, those who focus solely on tier 1, or their direct suppliers, may encounter limited success. This is why a greater number of businesses are looking at tier 2 and 3 suppliers to create broader diversity in the supply ecosystem. This is also the case with large buyers who are taking supplier diversity into account not only at the local or national level but globally.
As a project of the Quebec Business Women’s Network (QBWN/RFAQ), one of our main goals is building awareness and education through training and workshops on an array of topics. So, if you are a large business seeking to overcome challenges and engage with diverse suppliers, we are here to provide you with the information you need and to offer guidance. Maïa Connex is also a platform that serves as a hub for business opportunities across Canada, and we hold networking events along with our partners.
Regardless of where you are in your journey with supplier diversity, we encourage you to sign up for our training programs, which are offered online here :
Now that you better understand these terms, you can put this knowledge to use by joining our platform, which is a hub for business opportunities across Canada, including RFPs, tenders and direct contracts. We also invite you to sign up to stay tuned for future blog posts. In addition, you will be notified of any updates and upcoming workshops.