Why diversity should be a key feature in your supply chain

New Marketplace materials released

Extend your diversity and inclusion objectives through your supply chain, this will build you a better business: this is the message from a recent issue brief released by BITC’s Marketplace team.

Diverse suppliers are often smaller, and more agile, and so provide better flexibility in service levels helping to mitigate supply chain risk and volatility

Diversity and inclusion in the supply chain means working with suppliers to ensure they have inclusive workplace policies and practices in place as well as engaging businesses that are at least 50 percent owned by, or employ a large proportion of, people from groups that may suffer discrimination, ensuring they have access to opportunities in your company’s supply chain.

There is a strong business case for this in the UK – 8% of all small and medium-sized enterprises are owned by people from a black, Asian or minority ethnic background (BAME), jumping to 24% in London. Diversity is increasingly a key part of many organisations’ CR objectives, and also helps serve social objectives in community strategies.

“Diverse suppliers are often smaller, and more agile, and so provide better flexibility in service levels helping to mitigate supply chain risk and volatility,” says Romeo Effs, Group Supply Chain Manager at MITIE.

"Strengthening our diverse communities will ultimately contribute to overall economic growth" adds Sandra Kerr OBE, National Director, Race for Opportunity campaign, BITC.

This new issue brief follows a joint workshop run by the Marketplace and Race for Opportunity teams, in which practical case studies were shared to supply chain practitioners, including MITIE.

Recognising a responsible and holistic approach to their supply chain as essential in reaching targets set with their shareholders, MITIE is adamant it makes sound business sense. “Organisations need to recognise and accept that Supply Chain Diversity is a “marathon” not a “sprint” and as such it’s important to develop a “real partnership” ethos, taking your people, clients and suppliers with you on the journey” Effs said.

“Since BITC began working with businesses on responsible supply chain management, we’ve seen companies gradually shift from managing risk to proactively seeking opportunities to enhance their positive impacts. Supply chain diversity provides a tangible way for businesses to forge stronger links with communities, whilst at the same time creating business benefits,” said Jo Daniels, Marketplace Director, BITC.

BITC offers a range of resources to help its members develop their approach to supply chain diversity and inclusion. For more information about our work on diversity and inclusion click here or contact Faye Ramsson. For more on our responsible supply chain management work click here or contact Simon Lee.

Click here to view the issue brief.