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Last updated on 2024年6月12日

How do you manage supplier diversity and inclusion in your SRM program?

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Supplier diversity and inclusion (SDI) is a strategic approach to sourcing and managing suppliers from diverse backgrounds, cultures, and identities. SDI can benefit your supplier relationship management (SRM) program by enhancing your innovation, competitiveness, and social responsibility. But how do you manage SDI effectively in your SRM program? Here are some tips to help you.

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Idar Nouti, EMBA

#SupplyLinker | LinkedIn Top Voice | SCM Content Strategist | Enhancing Organization's Supply Chain Capabilities |…

1 Assess your current state

Before you start implementing SDI initiatives, you need to understand your current situation. How diverse and inclusive is your supplier base? How do you measure and monitor your SDI performance? What are the gaps and opportunities for improvement? Conduct a self-assessment or use a third-party tool to evaluate your SDI maturity and identify your strengths and weaknesses.

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Idar Nouti, EMBA

#SupplyLinker | LinkedIn Top Voice | SCM Content Strategist | Enhancing Organization's Supply Chain Capabilities | Expert in SRM, Sourcing, Procurement and Contract Management, and Supply Chain Digital Transformation |
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By aggressively seeking out suppliers from diverse backgrounds and creating an atmosphere where all suppliers, regardless of their demographic, feel welcomed and supported, I place a high priority on diversity and inclusion. This entails putting in place evaluation standards, training programs, and policies that support diversity and inclusion all the way through the supplier engagement and selection process.

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2 Set your goals and action plan

Based on your assessment, you can define your SDI goals and action plan. What are the specific outcomes you want to achieve? How will you align them with your business objectives and stakeholder expectations? How will you allocate your resources and responsibilities? How will you track and communicate your progress and results? Your goals and action plan should be SMART: specific, measurable, achievable, relevant, and time-bound.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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One thing that I have found helpful in setting goals is to involve key stakeholders and subject matter experts early in the process. Their insights can help refine goals, identify potential roadblocks, and secure buy-in for action items. Track progress in a monthly dashboard, showcasing trends and leading indicators. Communicate goals, action plans, and progress updates in monthly team meetings and quarterly reports.

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3 Engage your suppliers and stakeholders

SDI is not a one-way process. You need to engage your suppliers and stakeholders to ensure their buy-in, collaboration, and feedback. Communicate your SDI vision, goals, and expectations to your suppliers and solicit their input and suggestions. Provide them with training, support, and recognition to help them meet your SDI standards and requirements. Involve your internal and external stakeholders, such as employees, customers, investors, and communities, in your SDI activities and initiatives. Listen to their perspectives and concerns and address them accordingly.

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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One thing I've found helpful is co-creating SDI roadmaps and decision-making frameworks with key stakeholders upfront. This ensures initiatives are pragmatic and have built-in accountability. Suppliers: Communicate SDI vision, goals and expectations clearly through meetings, documentation Solicit feedback and suggestions from suppliers on feasibility, challenges and improvement areas Educate employees on SDI objectives and their roles through company-wide awareness campaigns Involve cross-functional teams in SDI planning and decision making Customers: Gather voice-of-customer feedback, run customer advisory boards, transparency on SDI progress Investors: Report SDI metrics, risk management and financial impacts in investor communications

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4 Diversify your sourcing and selection

One of the key aspects of SDI is to diversify your sourcing and selection of suppliers. This means expanding your pool of potential suppliers from different backgrounds, cultures, and identities, such as women, minorities, veterans, LGBTQ+, people with disabilities, and social enterprises. You can use various methods to identify and reach out to diverse suppliers, such as databases, networks, events, referrals, and partnerships. You can also review and revise your sourcing and selection criteria and processes to ensure they are fair, transparent, and inclusive.

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5 Integrate SDI into your SRM processes

SDI is not a standalone activity. It should be integrated into your SRM processes, such as contract management, performance management, risk management, and relationship management. You should incorporate SDI metrics and indicators into your contract terms and conditions, performance reviews, risk assessments, and relationship surveys. You should also align your SDI objectives and initiatives with your SRM strategies and plans, such as segmentation, collaboration, innovation, and value creation.

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6 Review and improve your SDI practices

SDI is not a static or linear process. It is a dynamic and continuous process that requires regular review and improvement. You should collect and analyze data and feedback from your suppliers and stakeholders to measure and evaluate your SDI performance and impact. You should also benchmark your SDI practices against best practices and industry standards to identify and close any gaps or areas for improvement. You should also celebrate and share your SDI successes and challenges and learn from them.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Kingsley Ukpai .M.

I help businesses develop and deploy Supply Chain & Operations Strategies that aid in attaining Organizational goals || I also help bridge knowledge & competence gaps by providing 100% FREE Supply Chain and Tech courses
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While SDI often focuses on environmental sustainability, it's important to also consider the social and economic dimensions. For instance, expanding access to digital services in underserved communities, ensuring ethical AI systems, and fostering digital skills development contribute to social sustainability. Successful SDI requires a cultural shift and change management. Leaders need to clearly articulate the vision, embed SDI into decision-making frameworks, provide training, and celebrate SDI wins to drive organization-wide adoption.

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How do you manage supplier diversity and inclusion in your SRM program?

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1 Assess your current state

2 Set your goals and action plan

3 Engage your suppliers and stakeholders

4 Diversify your sourcing and selection

5 Integrate SDI into your SRM processes

6 Review and improve your SDI practices

7 Here’s what else to consider

Supplier Relationship Management

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