What is a Diverse Supplier?
A diverse supplier is any business owned by a minority, woman, veteran, disabled individual, or LGBT person. Diverse suppliers are an important part of any company’s supply chain and can provide unique advantages and new opportunities for the company.
But hiring a diverse supplier isn’t just about serving customers — it’s also about creating opportunities for employees, supporting local communities, and ultimately making the world a better place.
Diversity, Equity, and Inclusion (DEI) is no longer an afterthought for businesses—it’s a critical component of their success.
That’s why it’s so important for companies to hire diverse suppliers who can help them meet their DEI goals. Doing so has a number of benefits that go beyond fulfilling legal requirements and creating a more inclusive workplace.
Types of Diverse Supplier
Hiring a diverse supplier is essential to ensure the success of any organisation. By diversifying their supplier pool, companies can better position themselves to reach more diverse customer bases and achieve better business results.
Minority-Owned Suppliers
Minority-owned suppliers are businesses owned by individuals who are members of a racial or ethnic minority group such as:
- Black/African American
- Hispanic/Latinx
- Asian American
- Native American/Alaska Native
- Middle Eastern/North African (MENA)
- Pacific Islander/Hawaiian Native
- Multi-Racial
These organisations often offer additional services such as language translation and cultural awareness to help bridge potential gaps between cultures.
Working with minority-owned suppliers can be a great way to increase diversity in your supply chain while also gaining access to new markets and customers.
Woman-Owned Suppliers
Women-owned suppliers are businesses that are 51% owned by women. Women-owned suppliers often face unique challenges in the marketplace due to gender bias and unequal access to capital and resources.
By working with women-owned suppliers you can support female entrepreneurship while increasing diversity in your supply chain.
Additionally, research has shown that companies who have a strong commitment to gender diversity tend to outperform those who don't—so there's an added financial incentive to work with women-owned suppliers as well!
Veteran-Owned Suppliers
Veteran-owned suppliers are businesses owned by veterans of the US armed forces such as Army, Navy, Air Force, Marine Corps., Coast Guard and National Guard personnel who have been discharged honorably or retired from active service during wartime or peacetime operations.
By working with veteran-owned businesses you can support veterans while increasing diversity in your supply chain.
Additionally, many veteran-run businesses specialize in delivering high quality services at competitive prices thanks to their training in military logistics and their personal commitment to excellence.
LGBTQ+ Owned Businesses
LGBTQ+ owned businesses are those majority-owned by individuals who identify as lesbian, gay, bisexual, transgender, or queer/questioning (LGBTQ+).
Unfortunately, due to discrimination based on sexual orientation or gender identity—as well as lack of access to capital—many LGBTQ+ owned businesses struggle just to stay afloat financially.
To combat this issue, companies can create supplier diversity programs specifically geared towards increasing economic opportunities for LGBTQ+ business owners.
Disabled-Owned Businesses
Any business that is 51% owned by a disabled individual is regarded as a ‘disabled-owned business’. Working with such business owners is not only good for the economy as it promotes friendly competition, but it also shows your commitment to giving businesses a chance.
Benefits of Working with a Diverse Supplier
There are several benefits that companies get by working with a diverse supplier.
Opportunity for Employees
Hiring a diverse supplier creates more opportunities for employees in the workplace by providing access to resources and training that would otherwise be unavailable.
It also brings with it an increased sense of inclusion and belonging among team members, as they are able to work with people from different backgrounds and experiences. This can lead to higher job satisfaction and improved productivity within the workplace.
Supporting Local Communities
Working with a diverse supplier helps support local businesses in areas where traditional suppliers may not have access or expertise. This provides economic opportunities for individuals in those communities, which often leads to positive impacts on the local economy at large.
Moreover, working with a diverse supplier means that your organization is contributing to investments that help create jobs and build wealth in underserved communities – something that should be viewed as both beneficial for society and beneficial for your reputation as an employer of choice.
A More Inclusive Environment
Finally, working with a diverse supplier means that you are helping to make the world a better place by ensuring equal access to opportunities regardless of race or gender identity.
This not only benefits those individuals directly involved but also contributes to greater diversity of thought throughout our society–something we all benefit from when it comes to problem solving and innovation.
inclusio Helps Businesses Get the Best Out of Their D&I Programs
inclusio is a cloud-based platform that uses AI to provide companies with unique insights into their diversity and inclusion efforts.
The platform offers comprehensive reporting, allowing companies to track and measure their progress in D&I and make informed decisions when developing new policies.
It helps companies provide a safe space to employees by anonymizing personal data and using gamified learning to help employees better understand different initiatives and their impact.