Having a diversity supplier program can help you reach a larger market share and become seen as a more innovative company. 82% of consumers saying that a diversity program would have at least a slight influence on their buying decisions. That’s why this kind of program is key to expanding your customer base and increasing your visibility in the market. You can also foster competition and innovation with your suppliers, and reap the benefits. There are significant growth and savings to be had with a diversity supplier program. However, like any program, you need to be checking up on it to steer it in the right direction.
Evaluate your Diversity Program
Half of large Fortune 5000 companies have a diversity program, but they believe that merely having a program is all it takes. 43% of companies don’t have any way to measure the ROI they are getting from their diversity supplier programs. We can manage what we can measure. In business, having some proof that your actions have the desired effect is essential. You need to measure your program in a variety of ways to be able to see a broader view of all the ways that your program is succeeding, or failing.
Measure your Suppliers
While 66% of companies believe their programs are effective, only 42% believe that the majority of their suppliers were effective. Creating economies of scale in your RFQ process by opening it up to companies outside of the incumbent you’ve been using. The key metrics that we see team’s reviewing for their Supplier Diversity programs are:
- Costs saved by changing supplier
- Customer attribution from using diverse suppliers
- Economic impact of the jobs created
- Incentives from the federal and state governments that come from using Tier 2 and 3 suppliers
Diversity supplier programs are something to embrace. However, an effective program is what you need to make it valuable to your business goals. That’s where Hire Ground comes in. We can help you understand the impact of your diversity program. We can help you to track your KPIs and reach your Supplier Diversity goals. We’ll share with you the best practices from other Fortune 1000 companies.