The Hackett Group

The Hackett Group Talks Supplier Diversity Trends

Is your supplier diversity program ready for greater expectations and visibility? Chris Sawchuk, Principal & Global Procurement Advisory Practice Leader, The Hackett Group, shares his expertise on the steps companies can take to create a more inclusive supply base and processes needed to ensure this diverse supply base is fully utilized.

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How to Fully Utilize a Diverse Supplier Base

Watch this 30-minute on-demand webinar to learn more about:

  • Growing trends related to supplier diversity
  • Steps companies can take to create a more inclusive supply base
  • Processes needed to ensure this diverse supply base is fully utilized
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Today, companies are taking a much harder look not only at their internal diversity efforts, but the diversity of their supply base as well. The Hackett Group's Supplier Diversity study highlights the growing importance companies are placing on these efforts and why.

For example, 74% of organizations cited the importance of leveraging supplier diversification efforts to improve their corporate image as well as meeting growing customer expectations. To be sure, there will be greater visibility of a company’s supplier diversity efforts to meet the societal, customer, and even regulatory, expectations.

Chris Sawchuk, Principal & Global Procurement Advisory Practice Leader, The Hackett Group
Featured Speaker:
Christopher Sawchuk
Principal & Global Procurement Advisory Practice Leader, The Hackett Group

Mr. Sawchuk leads The Hackett Group’s global procurement advisory practice. He has over 20 years of experience in supply management, working directly with the Global 2000 and midsized companies around the world and in a variety of industries to improve all aspects of supply management, including process redesign, digital enablement, operations strategy planning, organizational change and strategic sourcing. Mr. Sawchuk specializes in working directly with CPOs to help define a long-term strategy. He is a regular contributor to business publications, a frequent presenter at industry events and author of numerous reports and books. Mr. Sawchuk’s background includes engineering, operations and sales roles with both United Technologies and IBM.

One of the things that we have seen the last few years is that the reasons organizations are seeking supplier diversity have shifted from being a response to regulatory requirements to viewing diversity as something that will support their corporate culture and support company objectives.
Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader

FAQ

How much do organizations spend on corporate diversity?

As a percentage of total spend, companies spend between 5% and 16% with diverse suppliers, with an average of 10%.

What are some common initiatives that companies have taken to increase supplier diversity?

The most common initiative is to collaborate with the enterprise diversity team to establish the importance of supplier diversity, followed by identifying an executive-level champion for the supplier diversity program. Another common initiative is to support supplier diversity events and have senior management in attendance at these events. It is also important to articulate how supplier diversity can help business stakeholders meet corporate objectives, as well as to have support from senior leadership for diversity organizations and external events. About half of organizations surveyed also find advocates within business units and/or departments to drive diversity program initiatives. Almost half of organizations have clearly written statements from the CEO about the importance of supporting diversity initiatives, for example in the Annual Report or on the company website. Finally, almost half of organizations have established a clear business case with ROI for their supplier diversity program.

What are some recent trends in supplier diversity?

There is a trend towards stakeholders demanding increasing transparency around the diversity of a company’s supply base. Furthermore, customers are increasingly expecting a diversified supply base as a requirement for doing business with a company. There has also been a trend for companies that successfully demonstrate a diverse supply base will gain a competitive advantage. Local, state, and federal entities have been increasingly aggressive in supporting programs and requirements for supplier diversity. Supplier diversity expectations will continue to become more granular, and organizations will formally incorporate supplier diversity goals into the objectives of sourcing and category management staff, including tying supplier diversity program performance to incentive structures. For more detailed information, please watch the webinar.