Once you have addressed these questions , you might be ready to take your D & I efforts to the next level , which is to extend your D & I efforts to expand and rethink your supplier portfolio .
Identify Diverse Suppliers
There are two types of diversity classifications : self-classification and third-party certification . Third-party certification involves independent verification by recognized agencies . Smaller suppliers may prefer to self-identify since third-party certification can be cost-prohibitive . Depending upon the size of your supplier portfolio it can be challenging to identify whether a supplier is a minority or women-owned business . If you have a manageable portfolio , you can simply ask your suppliers by creating a supplier profile or questionnaire . Larger corporations with hundreds of suppliers will often access software such as CVM by supplier . io to scrub their list of vendors against a large database of third-party certified suppliers .
Embrace Procurement Technology
Embracing procurement technology to assist with your supplier diversity efforts is key to making a true impact . By integrating procurement technology into your sourcing process , you can expand your pool of potential suppliers . Procurement technology opens a whole new world of diverse e-commerce partnerships and can help your business identify high-quality products to source from more diverse brands . Once you integrate procurement technology with your new suppliers , you gain access to more diverse supplier data . Your new suppliers get a deeper dive into who is buying their products , how much they are buying , and which products are big revenue drivers .
If you are aligned to a GPO or purchasing technology partner , you might ask them to assist you in identifying , or even tracking , your diverse spend . At
Source1 , a leading procurement technology platform for the hospitality industry , we have over 350 food and non-food suppliers . We have partnered with Entegra Solutions to identify which of these are minority-owned suppliers . Source1 also is intentional in its choice of food manufacturers such as
General Mills ,
Unilever , and
PepsiCo , ensuring they share common values and have strong ESG ( Environmental , Social & Governance ) programs . When your hotel joins as a Source1 member , you gain access to an alliance of suppliers , both diverse and otherwise , who understand the importance of this common goal .
Track Diverse Spend
As Peter Drucker , a preeminent thinker in modern business , said “ you can only manage what you can measure ”. Once you have identified your diverse suppliers , the next step is to find a way to track diverse spend . Ask your accountant or bookkeeper if there is a field within your accounting software where this can be flagged . Even with smallbusiness accounting packages they usually have flexible fields by which you can identify diverse suppliers and run reports by this grouping to see if your spend has increased over time .
Launching a diversity and inclusion program doesn ’ t have to be hard when you are committed to growing your supplier networks . Defining your program , creating new partnerships , aligning with likeminded businesses , and embracing the power of technology are great steps to creating or improving your diverse and inclusive supplier relationships . Not only does joining forces with diverse and inclusive organizations improve your brand reputation , but it also lets your community know that your company is committed to diversity and inclusion , which can lead to future partnerships .
About the author Sarah Davie has been in executive leadership positions in the foodservice group purchasing sector for over 11 years . As President of Source1 , a digital procurement solution for the hospitality industry , Ms . Davie aims to help the hotel , lodging and gaming industry recover from a monumentally challenging period . Source1 bundles nocost procurement tech and award-winning client services for its large luxury , casino , and national hotel chain clients such as Radisson and Best Western . Previously , she held the position of Chief Administrative Officer at Buyers Edge Platform , parent company to Source1 . While in this role she participated in over 10 acquisition transactions and was responsible for corporate operations , human resources , and manufacturer relations . Ms . Davie has an MPA from New York University and in her spare time has spent over 20 years managing a non-profit organization that builds infrastructure ; like schools , clinics , and homes , for orphans and vulnerable children in Africa .
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