How can purchasing support supplier diversity and inclusion goals?

Supplier diversity and inclusion (SDI) is a strategic business practice that aims to increase the participation and representation of diverse suppliers in the procurement process. SDI can benefit both the purchasing organization and the suppliers, as well as the wider society and economy. In this article, we will explore some of the benefits of SDI and how purchasing can support SDI goals.

1 What is SDI and why is it important?

SDI, or the intentional and proactive inclusion of suppliers from different backgrounds, identities, and experiences in the sourcing and contracting of goods and services, recognizes the value of diversity and inclusion in the supply chain. It seeks to address the barriers and challenges that diverse suppliers face in accessing procurement opportunities. SDI is important for several reasons, such as enhancing innovation and competitiveness by bringing new perspectives, ideas, and solutions to the table, supporting social and economic development, reflecting and responding to the changing demographics and needs of customers and stakeholders, and aligning with the values and commitments of the purchasing organization and its partners.

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Aria Ballow
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Cela englobe des initiatives visant à promouvoir la représentation équitable de diverses identités au sein de la chaîne d'approvisionnement. Cette démarche n'est pas seulement une réponse aux attentes sociétales, mais également une opportunité de favoriser l'innovation, de renforcer la réputation de l'entreprise et de créer des partenariats plus résilients. L'inclusion et la diversité contribuent à créer une chaîne d'approvisionnement dynamique, reflétant la diversité du marché mondial et favorisant des solutions innovantes.

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Nana wang

solar energy consultant/CECEP SOLAR (listed enterprise)
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I have some experience. You can find suppliers in the following ways make sure of intentional and proactive inclusion of suppliers: 1. Exhibitions. For example, if I work in the solar industry, I can discover the latest technologies and products of PV modules in the world at the INTERSOLAR exhibition in Germany, so that I can optimize my current supply chain products 2. Industry summit to discover new suppliers. For example, when market supply and demand fluctuate greatly, how to find powerful new suppliers? Industry summits are a good choice to discover powerful new suppliers, because new suppliers will be right in terms of price and quality. By using old suppliers, we can get more cost-effective champ

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2 How can purchasing support SDI goals?

Purchasing can play a key role in advancing SDI goals by adopting and implementing policies and practices that foster a diverse and inclusive supplier base. It is important to conduct a baseline assessment of the current state of supplier diversity and inclusion in the organization, develop and communicate a clear and compelling business case and vision for SDI, establish and track measurable and realistic SDI objectives and targets, engage and collaborate with internal and external stakeholders, provide training and education to purchasing staff and other relevant personnel, create and maintain a database of diverse suppliers, incorporate SDI criteria and considerations into the procurement process, and provide feedback and recognition to diverse suppliers. All of these steps will help to raise awareness and build support for SDI, as well as ensure that the process is fair, transparent, and consistent.

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Aria Ballow
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Les achats jouent un rôle clé dans la promotion de l'inclusion et de la diversité en influençant activement le choix des fournisseurs. Cela implique de définir des critères clairs, d'évaluer la diversité des fournisseurs potentiels et de favoriser une communication ouverte avec ces derniers. La collaboration étroite avec des fournisseurs engagés permet d'étendre ces valeurs à toute la chaîne d'approvisionnement.

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Nana wang

solar energy consultant/CECEP SOLAR (listed enterprise)
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I have some experience in this regard and can carry out hierarchical management of suppliers. For example, for the suppliers of each product of the company, I will have four echelons: 1. at least 4 major suppliers, equally share 80% of the overall procurement share, and balance the share of each supplier 2. at least two secondary suppliers , give them 15% of the overall purchasing share, aim to replace the main suppliers when samething happened of the main suppliers. 3. new suppliers, give them 5% of the overall purchasing share, inspect and review the quality, price and service of the suppliers, and serve as substitutes for secondary suppliers. 4.alternative suppliers, test samples and service

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3 What are the benefits of SDI for purchasing?

SDI can bring many advantages to the purchasing organization, such as improving the quality and value of goods and services, enhancing the reputation and brand image of the organization, increasing customer satisfaction and loyalty, reducing the risks and costs of supply chain disruptions, and fostering a culture of diversity and inclusion within the organization. By accessing a wider and more diverse pool of suppliers and solutions, meeting and exceeding customer expectations and needs for diversity and inclusion, diversifying the sources and locations of supply, and promoting the values and principles of SDI, the organization can demonstrate its social responsibility and leadership in SDI, as well as increase the resilience and flexibility of the supply chain while encouraging the participation and empowerment of diverse employees and stakeholders.

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Gabriel Tomaz

Senior Buyer | Economist | Supply Chain Management | Strategic Sourcing | Yellow Belt | Power BI | Data Analyst
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Os benefícios da SDI para compras incluem a melhoria da qualidade e valor dos bens, fortalecimento da reputação e imagem da marca, aumento da satisfação do cliente, redução de riscos e custos de interrupções na cadeia de suprimentos, e promoção de uma cultura de diversidade e inclusão na organização. Ao acessar uma gama mais ampla de fornecedores e soluções, as compras podem demonstrar responsabilidade social, liderança em diversidade e inclusão.

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Aria Ballow
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L'adoption de cette réflexion dans les achats présente plusieurs avantages. En plus de favoriser l'innovation en intégrant une variété de perspectives, elle améliore la résilience de la chaîne d'approvisionnement en diversifiant les sources d'approvisionnement, et renforce la réputation de l'entreprise, qui sait répondre aux attentes croissantes des parties prenantes en matière d'éthique et de diversité.

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Nana wang

solar energy consultant/CECEP SOLAR (listed enterprise)
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1. Can optimize products to ensure that the company's products meet the latest market requirements; 2. Ensure the stability of the supply chain and prevent unnecessary losses due to market changes and suppliers’ inefficiency. 3. Identify and eliminate waste and/or variability in the supply chain. 4. Ensure that you understand the most cutting-edge information of the product supply chain market and provide market information guidance for the company's strategic development.

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4 What are the benefits of SDI for suppliers?

SDI can also bring many benefits to the suppliers, especially those who belong to underrepresented or marginalized groups. This includes expanding their market access and opportunities, increasing their revenue and profitability, developing their capacity and capability, leveraging their diversity and inclusion as a strength, and building their network and relationships. Connecting with new and existing customers and partners who value and support SDI, securing more and larger contracts, receiving feedback, mentoring, coaching, and training from the purchasing organization, showcasing unique and innovative products and services, and joining and participating in SDI programs, events, and platforms are all ways that suppliers can benefit from SDI.

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Aria Ballow
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L'inclusion et la diversité bénéficient également aux fournisseurs en élargissant leur accès à des opportunités commerciales, surtout pour des petites structures.

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5 How can purchasing and suppliers work together for SDI?

SDI is not a one-way street, but a mutual and collaborative effort that requires the commitment and involvement of both purchasing and suppliers. To ensure success, both parties should communicate openly and honestly about their expectations, needs, and challenges, while seeking to understand and respect each other's perspectives and goals. Establishing and maintaining trust and transparency is also essential, as is seeking and creating win-win solutions that benefit both parties. Additionally, both parties should support and empower each other by providing guidance, assistance, and resources, and recognize and appreciate each other's efforts and achievements. Finally, learning and growing together by exchanging knowledge, ideas, and best practices is key to seeking continuous improvement and innovation.

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Robert Nichol Jr. , CPSM, CPSD

CPSM, CPSD | Speaker | Results-driven Procurement Leader described as "most transformational mindset in the company" Data-Driven | People-Centric | Strategic Sourcing | Contract Negotiations | Vendor Management
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Working with diverse organizations typically means working with smaller organizations. These come with a different set of requirements from the supplier. Cashflow may be a much bigger issue to a smaller firm than their much larger competition, BUT they are also typically more willing to work with an organizations contracting terms if they can have the cash flow addressed. Its the attention to the seemingly smaller issues that will endear a supplier to working with you and will drive the innovation which is the true ROI.

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Aria Ballow
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La collaboration entre les achats et les fournisseurs dans ce cadre repose sur une communication ouverte et une compréhension mutuelle. Les achats peuvent encourager les fournisseurs à adopter des pratiques inclusives en fournissant des directives claires, des formations et en facilitant un dialogue continu. En retour, les fournisseurs peuvent partager leurs expériences et perspectives pour enrichir la démarche.

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How can purchasing support supplier diversity and inclusion goals?

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1 What is SDI and why is it important?

2 How can purchasing support SDI goals?

3 What are the benefits of SDI for purchasing?

4 What are the benefits of SDI for suppliers?

5 How can purchasing and suppliers work together for SDI?

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