Supplier Diversity – Your Competitive Advantage
The objective of our Supplier Diversity Initiative is to include diverse suppliers in every sourcing opportunity, wherever available. As part of our strategy to increase our diverse supplier network, we seek out, identify and encourage diverse suppliers to compete in our sourcing initiatives. This helps identify qualified suppliers to partner with and better service our clients under our MSP Program. This approach has increased our diverse supplier network by 60% and created a win-win for our clients.
For instance, last year we adopted a strategy for one of our MSP clients to ensure better service levels for their geographically dispersed labor requirements than they were receiving from their small supply base of mega-sized staffing suppliers. We conducted a comprehensive sourcing initiative which included 100 suppliers across over 200 locations. As a result of this initiative, we selected a network of over 25 suppliers; the majority of which were local and regional. These smaller suppliers are pleased to partner with our client and are able to provide more personalized service. We included all qualified diverse suppliers in the bidding process and those suppliers fared very well. More than 50% of the suppliers that were awarded contracts were diverse. As a result, we anticipate that our client’s diversity spend will increase by nearly 70% this year. Not only are our client’s service requirements being better met, but this sourcing initiative will generate nearly 8.8% savings of total spend.
Including diverse suppliers in our supplier network gives us a competitive advantage in the MSP marketplaces. It allows us to better align our supply base with the diversity of our workforce and our clients and allows us to provide high service levels and competitive pricing.
How has your Supplier Diversity Initiative improved your competitive advantage?