A diverse supplier is a business that is at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group. Common classifications are small-business enterprises (SBEs), minority-owned enterprises (MBEs), and woman-owned enterprises (WBEs). Over time, the definition of diversity has expanded to include businesses owned by other underrepresented groups such as LGBTQ+, veterans and proprietors with disabilities.
Why is Supplier Diversity Important?
• Establishes an expectation and an invitation to minority-owned businesses that their business is welcomed
• Maintains high moral and ethical standards of the company
• Increases market penetration in diverse markets and segments
• Drives social and economic benefits in targeted communities
• Improves corporate reputation and involves the organization in the communities where business is conducted
• Generates economic opportunity for disadvantaged communities
• Creates a selling point when hiring - 52% of applicants said they want to work for a company that has a supplier diversity program (survey conducted for UPS by Hootology)
• Widens the pool of potential suppliers & promotes competition in the supply base, which can improve product quality and drive down costs
• Makes supply chains more resilient and agile.
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