Supplier Diversity Enhancement

An effective supplier diversity initiative can help companies and organizations better reflect the diversity of the communities in which they serve. A strong supplier diversity initiative will drive more interest in, and support of, their goods and services by the diverse business community. The goals of such an initiative should include: 

  • Attracting the best and brightest suppliers/service providers, etc.;
  • Increased diverse supplier participation and spend (diverse spend parallel to diversity present within the community); 
  • Increased potential for savings on goods/services through increased competition, and;
  • Best-in-class supplier diversity as a leading example to be proud of and for others to follow.

Keys to Implementing a successful Supplier Diversity Initiative

  • Desire and commitment from the top
  • Access to a pool of qualified diverse suppliers
  • Proven process that encourages diverse supplier participation and rewards buyers for using the process (increased savings)
  • Measuring, tracking and reporting results
Definitive, visible leadership and support from the top down;
Create an environment that invites qualified diverse suppliers to engage
Integration with existing Strategic Plan;
Separate 1st and 2nd tier opportunities
Review all areas of impactable spend and set a baseline;
Analyze current supply chain expenses, identify easily impactable areas for introduction
Treat Supplier Diversity Initiative the same as any other “crucial to success” initiative;
Measure results consistently and report on progress
“With the assistance of ESG, our organization's enhanced Supplier Diversity Initiative is an ideal way for us to express our support for the diverse businesses in our community, demonstrate best-in-class supplier diversity for educational institutions in Kentucky, and allow these businesses to learn more about what our campuses have to offer.”
President and CEO, leading Higher Education Institution