Creating Procurement Success with Supplier Diversity

Finding the right suppliers can be a challenge, and it’s a critical part of any procurement team’s job. The best partnerships come from cultural compatibility, having common goals, mutual respect, and so much more.  It’s not simply about picking the supplier who can offer the lowest price, it’s making sure that the supplier that is chosen is really the best fit as well as offering a fair market value on what’s being sold.

Procurement departments also need to align themselves with existing corporate goals, and that often involves increasing spend with small, minority-owned, veteran-owned or woman-owned businesses. In addition to the feel-good aspects of supplier diversity, it’s also just good business sense. Diversity is key in a business ecosystem, and supplier diversity is one aspect of that.  It can increase penetration in diverse markets while improving corporate image, and on top of that it can be cost effective as well. According to Michigan State University, studies have put the ROI of a supplier diversity program as high as 133 percent.

Additionally, working with smaller businesses could make your business a bigger priority to your vendors, and some of those vendors might be more open to changing their processes to better fit your organization’s needs. The smaller supplier might have exactly the item you need packaged exactly the way you want it. Often, the smaller vendor could be the better fit for your needs.

Veriscape’s Technology Solutions Can Help You Integrate with Your Small Supplier Base

For those who want or need to find smaller suppliers, it can at first seem daunting to work with a smaller supplier’s existing business and technology systems. For a larger company with significant investments in ERPs and other existing systems, it might seem like too much effort to integrate with a partner who has less advanced technology tools.  

With the combined solution offered by Veriscape and IBM, we can help to make technical integration with smaller vendors seamless. Our systems can work with the systems of suppliers of all sizes and types, and IBM offers a Small Business Toolkit for those who need it. Veriscape’s Partner IBM doesn’t just talk the talk; they are experts in supply chain diversity. In fact, they are the first IT company to spend $1 Billion USD with minority businesses. They have first-hand experience with making partnerships work no matter the size.

For companies looking for ways to add diversity to your supply chain, it’s well worth the time and effort. If you need a little help, please don’t hesitate to get in touch with Veriscape today.