By Natalie Rodgers
We’ve all heard about the importance of a supplier diversity program, but we often don’t talk about how it the benefits both the supplier and the company. Whether you’re a small business thinking about entering into a supplier diversity partnership or in a managerial position with a large company, here are some of the best reasons why you should be engaging in supplier diversity:
Innovation Abounds
When you invite diverse suppliers to collaborate with your company, you bring in a host of new ideas, perspectives and experiences that you may not have been aware of before. For example, a clothing company may sell incredible products for able-bodied individuals, but a disability-owned supplier could provide insights on how the company can create clothing for those in wheelchairs or with limb differences. For corporations, these partnerships can provide invaluable perspectives from diverse audiences on how they can improve their current products, attract a larger and more inclusive audience and discuss ideas for new products or services. For suppliers, these relationships can provide an opportunity to make a more direct impact on the needs of the community and give a better understanding of the business side of large-scale corporations.
Profits Increase
By engaging in supplier diversity partnerships, corporations can expect to see a significant increase in their consumer base and profit. By partnering with diverse entrepreneurs, they are showing their consumers that they prioritize diversity and inclusion, support small businesses and are open to collaboration. These are all positive attributes that encourage customers to buy their product or service. As corporations tend to have much larger audiences than small businesses, suppliers may also see an increase in exposure and profits by getting their products or services in front of a much larger audience.
For example, if Restaurant A sells coffee provided by a veteran-owned coffee company while Restaurant B does not, it stands to reason that military veterans and their supporters are more likely to buy coffee from Restaurant A so they can support the veteran community while purchasing a drink they would have bought anyway. Patrons who already frequent Restaurant A—and who may have never known about the veteran-owned coffee company otherwise—may discover they like the coffee so much that they want to purchase similar products directly from them. This brings new customers to the veteran-owned coffee company—and also more revenue.
Communities Strengthen
Supplier diversity partnerships can also bring a better understanding of the communities being served. Small businesses are usually created by and for the community, while large corporations can have a more difficult time engaging with their core audience. Supplier diversity gives small businesses the ability to inform corporations on the needs and interests of the community, so they can use their influence to provide better solutions.
For example, an athletics company may make great apparel for men, but may lack in products available for women. A women-owned supplier would be ideal to inform the athletics company on what types of athletic apparel appeals to women. This can lead to new products being designed and sold for women, which in turn better informs corporations on the diversity of their audience and fills a community want or need that directly supports the supplier.
What Next?
Supplier diversity partnerships are some of the best ways to improve every facet of your business needs. If you’re looking to join a partnership or want to learn more about diversely-owned small businesses, here are some organizations that can help:
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