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.

Companies with supplier diversity programs expect to realize benefits such as increased brand value and customer loyalty. However, they may be surprised with some of the other advantages that come with a more inclusive supply chain.

“What is the ROI of this program?” 

This is the million-dollar question that supplier diversity managers and procurement leads hear constantly. 

It is no small task to quantify the financial results and economic impact of a corporate supplier diversity program. Companies track a few different metrics to measure their ROI, including:

One of the things that has driven procurement teams’ success to this point is their ability to operationalize business objectives. They take a goal—such as lowering costs or increasing supplier service levels—and put processes, agreements, and reporting frameworks in place to drive the desired results.

Are you new to supplier diversity and wondering what it all means? Are you looking for validation that supplier diversity is important and adds value to your company? You can find the basics right here. Then, you can dig deeper on our blog or with our videos, white papers, and e-books.