Suppliers and Diversity

Summary

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This paper is a report of the initial findings of the Billion Dollar Roundtable on the subject of global supplier diversity. The paper represents a beginning and a jumping off point in developing the business case for global supplier diversity. The paper will assist the BDR in charting a course for further thought and project design. The development of the business case for global supplier diversity is in its early stages as the global economy continues to expand and gain definition and as organizations adapt and transform themselves. Given changing global demographic and population trends and market forces, along with corporate procurement requirements to reduce costs and to enhance productivity, the emerging business case for global supplier diversity is vibrant and relevant. The BDR believes the business case needs to be clearly articulated and closely linked to corporate strategic imperatives. Corporations will need to think differently about the roles key diverse suppliers can play in reaching a variety of constituencies. Economic and social factors will prompt corporations to embrace global supplier diversity as demanded by today's knowledge-based economy that recognizes education and skill as the measure of future success and economic viability.

"The Business Case for Global Supplier Diversity" expects to provoke ideas and discussion, provide direction and stimulate best practices. Drivers that will move global supplier diversity activities will include executive commitment, the integration of supplier diversity into the supply chain, economic conditions, technology, political and regulatory factors, social and lifestyle factors, global conditions and sourcing strategy. The benefits for global supplier diversity will be clear — enhanced operations, bottom line results, competitive advantage, corporate image, business excellence and an integrated supply chain. In a knowledge-based, global economy, diversity is recognized as a strategic asset. Enlightened corporations will understand that global supplier diversity is part of business strategy and corporate culture. These companies will support and collaborate with diverse firms on global initiatives and opportunities. They will foster international market development in conjunction with diverse firms and empower domestic and global communities. As minority customer bases proliferate worldwide and demand new products and services, diverse firms increasingly will be positioned to engage these new customers and markets. The BDR will continue to examine the business case as it evolves.

To view the rest of the Billion Dollar Roundtable 2007 Policy Paper click here.