Why Supplier Diversity Is More Important Than Ever
Recent world events in 2020 have put our societal values, business practices, and plans for the future under the microscope, especially “diversity.” Many businesses have been involved to some degree in supplier diversity programs, but why are these initiatives more important than ever, and what more can be done? Diversity in our supply chains has been shown to boost innovation within organizations, promote growth, and increase productivity, but it also increases the resilience of local economies through encouraging entrepreneurship, creating jobs, and improving living standards.
Every economic downturn raises corporate budgeting questions that may affect business programs such as Supplier Diversity. While some may wonder if companies will continue their Supplier Diversity efforts due to tightening budgets, others feel that these efforts become more necessary during an economic slowdown.
Companies see the need for services that they have earlier considered. As a Minority Women-Owned Business Enterprise, and diverse supplier, The Millennium Group, where service Matters are uniquely equipped to help. Now, many businesses are looking for safe ways to handle their Mail and Parcels, reception services, Office-related services and Print services. Depending on the guidelines that emerge as the economy is reopening, it is possible that many work environments – any office, distribution center, or working from home – will also look for innovative ways and technologies to handle Office, Mail and Parcel, and Print services. These situations will create many buying needs – ones that Supplier Diversity managers and diverse suppliers can help fulfill together.
The demand for such new services will outstrip supply. Companies will need to discover and develop new businesses that can meet these changing needs. Diverse suppliers can adjust and meet unique needs. Diverse Suppliers are often overlooked by purchasing teams during normal times. In times of a pandemic, diverse suppliers can help fill in where traditional suppliers are unable to keep up with drastic changes. Additionally, Supplier Diversity teams have access to networks such as the NMSDC (National Minority Supplier Development Council), WBENC (Women’s Business Enterprise National Council), MBDA (Minority Business Development Agency), and SBA (Small Business Administration) that can connect suppliers to financing and management development opportunities that to help scale their businesses to meet growing demand or drastic changes to the environment.
Companies will begin to bring sourcing back to the U.S to reduce supply risk. Diverse Suppliers can fill in the gap. The current crisis has exposed the weaknesses in relying solely on offshore suppliers for U.S.-based companies. In times like these, countries impose many restrictions to services. Even in the absence of restrictions, quarantine measures can limit services. The COVID-19 pandemic will only accelerate this trend. To create a sustainable procurement strategy, companies will need to find and develop local service suppliers that can help meet these new needs. Once again, The Millennium Group, a U.S. based company, can be critical in tapping into a broad pool of national services preventing these risks.
The coming year will bring about changes in what and how U.S businesses purchase services. Through all these changes, it will become even more critical for businesses to find new and previously under-utilized services and technologies to meet the changing office and to reduce their supply chain risk. Now is not the time to wonder if you need a diverse supplier, it is time to lean on us even more.