When the economy is in growth mode, there are plenty of resources and opportunities to go around. When inflation and recession take over, businesses are forced to revisit their priorities. One of the most important considerations a leadership team will make is how to support their closest supply partners without putting their own financial stability at risk.

Last month, new research was unveiled in a Harvard Business Review article that has the potential to completely transform how we talk about supplier diversity.

"We're at our best when our priorities and actions reflect the needs of the communities we serve. We'll continue to feature the brands and trends that speak to the diversity of our customers while simultaneously offering the value, innovation, and trust they expect from the products across our aisles."

• Andrea Harrison, VP of Merchandising, Beauty & Personal Care at CVS Health

Companies are facing multiple challenges in parallel today. The economy is slowing, supply chain disruptions persist, and labor shortages plague all industries. Remaining profitable is priority No. 1 for executive teams, and this is a natural response. At the same time, it may jeopardize the progress and commitments made to increase spend with diverse-owned businesses.

Although most procurement teams focus their diversity and inclusion efforts on identifying certified diverse suppliers they can invite to participate in sourcing projects, the practice of tracking workforce diversity is a closely related and complementary effort. 

Are you struggling to get your supplier diversity program funded? Not sure how to meet your goals without a supplier diversity budget? You’re not alone.