A Chief Procurement Officer sits at their desk, examining a lengthy list of potential suppliers to create ties with. The term “DEI” often comes with an implicit connection to Human Resources, but the truth is that DEI initiatives are beneficial to any department. Numerous studies suggest that supplier diversity in Procurement, for example, enhances innovation, expands access to new demographics, and improves flexibility. But where to begin?
Fortunately, implementing DEI into Procurement is not as intimidating a task as it sounds, hand over my heart! Here are a few tips for incorporating DEI strategies to improve supplier diversity:
First and foremost, identify what groups of diverse suppliers to work with on particular projects (e.g. women, people of color, veterans, people with disabilities, etc.). A good rule of thumb to classify a supplier as diverse is if they are “at least 51% diverse owned” and/or if they “have a certification attesting to their diversity.”
Beyond working with diverse suppliers, it is crucial that the consideration and requirements section of an organization’s procurement policy explicitly include “guidelines for engaging diverse suppliers.” Not only does this inclusion create intra-organizational accountability for working with diverse suppliers, but it demonstrates to other corporations how this organization prioritizes DEI.
Track the following key performance indicators: “How many diverse/local/small businesses were contacted; How many of those businesses submitted an RFP; How many of those businesses won their RFP; [and] What the contracts won were worth.” Monitoring these KPIs helps ensure an organization is working equitably with all of their suppliers and not unwittingly prioritizing some over others.
Lastly, work with suppliers that similarly prioritize DEI. Just because a potential supplier is not themself diverse doesn’t mean they don’t work with diverse organizations! Create a supplier chain that emphasizes the importance of DEI.
Still unsure where to start? SupplyShift recommends that “[t]ools like supplier.io and Tealbook provide databases of suppliers (including diverse suppliers) for businesses to build new relationships with. Companies can also attend diverse supplier events or join organizations like the National Minority Supplier Development Council for resources and peer learning opportunities.” Diverse, equitable, and inclusive procurement is therefore easily attainable, so long as one is willing to put in the effort for it!
Dima Ghawi is the founder of a global talent development company with a primary mission for advancing individuals in leadership. Through keynote speeches, training programs and executive coaching, Dima has empowered thousands of professionals across the globe to expand their leadership potential. In addition, she provides guidance to business executives to develop diversity, equity, and inclusion strategies and to implement a multi-year plan for advancing quality leaders from within the organization.
Reach her at DimaGhawi.com and BreakingVases.com.
