Inclusion in supply chains is a business imperative. Let’s unpack

“Inclusion is not a matter of political correctness. It is the key to growth.”

–Jesse Jackson (Activist)

#Inclusion in supply chain starts with objective setting. It should be clear to all stakeholders, especially those who are responsible for implementation, why inclusion is not just a ‘a nice to have’ but an important part of your supply chain as an organisation. Unless you define the objective at the organisational level, and fully understand your 'why', teams will likely pull in different directions.

For the supply chain manager, (and at a personal level) there must be a similar ‘why.’ The ideal of #inclusion is bigger than your KPIs or whatever performance management system you use. As you advance in the profession, you will ultimately ponder your legacy. The bigger #inclusion goal at the personal level then becomes leaving a positive mark on the organisation and the community around you, and making an impact in the supply chain.

Let’s now explore why it is important to ensure you are running an inclusive supply chain

When you consider the diversity among your customer base within the organization you serve, you likely segment them by gender, age, abilities, preferences, and dislikes. At the core, these segments are divided into males, females, young, elderly, individuals with disabilities, and more. This segmentation helps in crafting a strategy to engage with them, foster loyalty, and so forth. Similarly, when examining your supplier base, the typical segmentation includes geography, types of goods and services, capabilities, financial strength, and more. At the fundamental level, this segmentation mirrors that of the customers – Male, Female, Youth, Individuals with Disabilities, and so on. This forms the basis for formulating a supply chain impact strategy.

Let’s use women suppliers to demonstrate the ripple effect of inclusion in your supply chain for a minute

Does empowering women benefit businesses? Yes, it does, because women represent at least 50% of the population. According to the World Bank report on Women and Trade, supporting women leads to greater economic equality. The UN report on economic empowerment also points to the fact that fostering a more inclusive environment drives economic growth.

There is a growing global demand for companies to report on sustainability and show improvement in Diversity, Equity, and Inclusion (DEI) performance. Supply chain inclusion plays a crucial role in DEI metrics, because an inclusive supply chain promotes innovation and resilience.

As an organization, enabling half of the population to earn a livelihood reduces their dependency on others, creating a larger customer base with income. This contributes to the economy, speeds up development, and enhances living standards. By supporting one individual, you positively impact the lives of ten others, leading to a better economic outcome. This principle applies to youth and other special groups included in the supply chain. Empowering these groups not only provides economic growth, it also fosters a connection with your organization and brand, building long-term brand loyalty and a sustainable market. This results in a long-term Return on Investment in Loyalty (ROIL) and the potential for expansion into new markets.

Secondly, practising inclusion in your supply chain is simply the right thing to do. There exist marginalized communities within your geography, for example. Inclusion involves empowering the communities that consume your products or where you operate; enabling them to be the providers of basic labor and then assisting in building capability.

Thirdly, regulation. The broader community and your stakeholders expect you to operate an inclusive supply chain. It would be unethical for a company to prosper solely by taking and looking inward without extending its influence beyond its internal environment. Shareholders are increasingly calling for more inclusive supply chains and transparency in operations. Studies also indicate that young people prefer to be affiliated with socially and environmentally conscious organizations.

Key questions to consider in order to remain focused: Who are my suppliers? How am I creating an impact? What kind of footprints am I leaving behind and where do they lead? Consider the legacy you will build beyond the figures you report in your profit and loss statement.

At the individual level, it is important to ponder your ‘WHY’. What’s in it for you? What legacy would you like to leave on the planet? How do you make a difference. How does this align to your organisation’s purpose and mission? For those in the Supply Chain practice in Kenya, we have an enabling regulatory framework in the form of the PPAD Regulations 2011 on AGPO and The NSE ESG disclosures reporting guidelines.When you embrace inclusivity, the conversations that you have and drive are centred more on impact than solely on profit.?

I hate to be the bearer of bad news. But, if you are not inclusive, your business may eventually die. I am convinced that we will get to a place where suppliers will not want to work with organisations that have not embraced inclusivity.?