What is the role of "supplier diversity" in procurement?

The role of "supplier diversity" in procurement primarily focuses on promoting the inclusion of diverse suppliers in the procurement process. This encompasses businesses owned by underrepresented groups, such as women, minorities, veterans, and people with disabilities. By actively seeking to include diverse suppliers, organizations can foster a more equitable economic environment and drive innovation through a broader range of ideas and perspectives.

Supplier diversity not only helps in building a more inclusive procurement strategy but also enhances the company's reputation, customer loyalty, and stakeholder engagement. It can lead to improved community relations and contribute to the economic development of various groups, thus reinforcing corporate social responsibility initiatives. Overall, the inclusion of diverse suppliers enriches the supply chain by increasing alternatives and promoting competition, aligning with the strategic goals of many organizations.