Supplier diversity requirements aren’t just a matter of compliance, they’re important regulations making sure all businesses have an opportunity to thrive. For organizations in the public and private sectors, supplier diversity and Disadvantaged Business Enterprise requirements can strain procurement departments already struggling with their tail spend. Fairmarkit makes it easy to increase the diversity of your supplier base without increasing workload.
Value Of Diversity
Supplier diversity means capitalizing on the opportunity to work with a new, growing and diverse set of suppliers. Companies do this by proactively seeking out business relationships with all types of suppliers: large and small businesses, businesses owned by minority, women, veteran, persons with disabilities, LGBTQ or socio-economically disadvantaged groups. This means improving results and profitability by promoting diversity of products, thoughts, people and perspectives. At Fairmarkit, we’ve found the business potential of supplier diversity to be high. Benefits of a well-structured Supplier Diversity Program include:
- Larger, more agile supplier base
- Access to the rapidly growing minority business segment of the supplier population and the increasing spending power within those communities
- Increased number and quality of bids
- Improved public perception and build goodwill
- Satisfied federal requirements
- More support of the local economy
At Fairmarkit, we’ve also found that most procurement departments are concerned with minimizing the amount of time spent on tail spend. This means limiting themselves to their current suppliers. In this case, suppliers are intentionally and unintentionally excluded from the bidding process, leading to an erosion of trust and decreased competition. With Fairmarkit, you can automatically increase the number of suppliers that receive your requests for quote, bringing competition and diversity back to your supply chain management.
Disadvantaged Business Enterprise (DBE) status is an important tool for ensuring a competitive marketplace is equitable for all. For many procurement departments, disorganized tail spend habits do not promote full inclusion of DBEs. Departments that do not diversify their supplier base are missing an opportunity. In addition to helping other business secure equal access to private and public contracts, diverse supplier bases create better prices and steeper competition. Fairmarkit simplifies the request for quote and request for service process so that procurement can foster diversity throughout the procurement cycle.