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Diversity is Important to Advance Equity in the Marketplace

Supplier diversity is a procurement practice used by large corporations, federal government entities, and municipalities to incorporate businesses owned by groups historically left out of the supply chain. These groups include minorities, women, veterans, service-disabled veterans, LGBTQ individuals, and people with disabilities.

Companies with supplier diversity initiatives encourage buyers throughout the organization to include diverse suppliers in bidding opportunities because they bring innovation, agility, and other advantages that benefit corporate bottom lines. These suppliers also improve their communities by providing jobs and training and driving investment.

Supplier diversity is key to the advancement of true equality and inclusion. Statistics show that companies with diverse supply chains are more profitable than those without them. Diverse suppliers also contribute substantially to the U.S. economy.

A diverse supply chain:

  • Drives innovation in the supply chain as diverse suppliers tend to be creative, innovative, and responsive to new trends.
  • Increases brand awareness and cultivates future customers among both diverse suppliers and diverse purchasing bases.
  • Improves competition by expanding the pool of suppliers, thus potentially driving down costs.
  • Provides expanded procurement opportunities and channels by increasing the number of potential suppliers, leading to more stable procurement channels.
  • Connects likeminded company representatives to create opportunities for additional business relationships among both corporations and diverse suppliers.

Often meets and exceeds expectations according to research from the Hackett Group.