What are the best ways to ensure supplier diversity and inclusion in contract negotiations?

1 Define your SDI goals and criteria

Before you start negotiating with suppliers, you need to have a clear vision of what SDI means for your business and how you will measure it. You can use frameworks such as the Supplier Diversity Index (SDI) or the Supplier Inclusion Maturity Model (SIMM) to assess your current state and set your targets. You also need to define the criteria and standards that you will use to evaluate and select suppliers, such as certifications, performance, quality, and social responsibility.

3 Engage with diverse suppliers and networks

To ensure that you have a diverse and inclusive pool of suppliers to negotiate with, you need to actively engage with them and build relationships. You can do this by attending or hosting SDI events, such as trade fairs, workshops, or webinars, where you can showcase your opportunities and learn about their capabilities and needs. You can also join or partner with SDI networks, such as industry associations, chambers of commerce, or advocacy groups, that can help you connect with and support diverse suppliers.

4 Use fair and transparent negotiation processes and tools

When you negotiate with suppliers, you need to ensure that you are fair and transparent in your processes and tools. You should avoid any biases or preferences that might disadvantage or exclude diverse suppliers, such as price-only criteria, unreasonable deadlines, or complex terms and conditions. You should also use objective and data-driven methods and tools, such as benchmarking, scoring, or e-procurement platforms, to compare and evaluate suppliers based on your SDI criteria and goals.

5 Monitor and review your SDI outcomes and impacts

After you finalize your contract negotiations with suppliers, you need to monitor and review your SDI outcomes and impacts. You should track and measure the performance and quality of your diverse suppliers, as well as the benefits and challenges of working with them. You should also collect and analyze feedback from your suppliers, customers, and stakeholders on your SDI efforts and achievements. You should use this data and insights to improve your SDI strategy, policies, and practices for future negotiations.

6 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?