In 2020, there was a surge of new supplier diversity programs. A broad desire for social change served as the catalyst for many companies to create programs, and their commitments to suppliers, consumers, investors, and the public were visionary and optimistic. 

Now, two years later, we find ourselves working through very difficult economic conditions. Inflation is at 40-year highs, and the Federal Reserve is taking a measured response, one that will hopefully reduce inflation by increasing the cost of capital but may also lead the country into a recession.

“We should be investing in diverse businesses because it supports the strategy of the organization, not as the responsibility to ‘do the right thing.’”

—Senior Commodity Manager, a participant in the 2021 State of Supplier Diversity Report

Procurement teams have often been accused of pursuing savings at all costs—above value, supplier relationships, and stakeholder preferences. And while this dynamic is usually driven by the key performance metrics assigned to them by the corporate leadership team, there have been enough years of pushback and emphasis on value creation to turn the page.

We’ve all been there. You see a request for proposal (RFP) coming up, but none of your current diverse suppliers provide the needed product or service, so you take to Google. “Product” + “minority-owned business” has to turn up something usable, right? You probably will get one or two or even a handful of matches, but now you have to find contact information so you can start the vetting process.

Procurement has always wanted a seat at the table. They want guaranteed acceptance by C-level executives, recognition that procurement makes valuable strategic contributions to the company, and the opportunity to provide input on decisions made beyond their own functional remit.

Once your supplier diversity program is established, goals are set, and you begin to see results—however small in the beginning—it’s time to celebrate!