Supplier Diversity is defined as reaching out to groups not traditionally included or underrepresented in the supply chain or within the purchasing process of major corporations or governments. Some underrepresented groups include LGBT, women, visible minority, aboriginal business owners, people with disabilities and Veterans. By procuring goods and services from these diverse suppliers, organizations and governments are creating value in historically disadvantaged communities through job creation, tax dollar generation, economic empowerment, and increased spending power amongst these communities. It has since become apparent that there are other benefits, such as innovation, flexibility, cost savings, etc.
Supplier Diversity has been an active program in the USA for more than 40 years and has legislation to support it at federal, state, and municipal levels. Many major corporations support Supplier Diversity in Canada, and have been actively building and establishing their programs over the past 10 years. In April 2016, the City of Toronto was the first government body in Canada to put a program in place.
Supplier diversity benefits include:
Supplier Diversity encourages economic development and innovation by
Supplier Diversity has been an active program in the USA for more than 40 years and has legislation to support it at federal, state, and municipal levels. Many major corporations support Supplier Diversity in Canada, and have been actively building and establishing their programs over the past 10 years. In April 2016, the City of Toronto was the first government body in Canada to put a program in place.
Supplier diversity benefits include:
- Helps businesses and governments connect with their communities
- Drives innovation through new perspectives
- Builds a reputation in diverse communities
- Builds prosperity in targeted communities
- Levels the playing field
- Increases market penetration in diversity markets, driving social and economic benefits in targeted communities
Supplier Diversity encourages economic development and innovation by
- Allowing the small and medium businesses which have the best economic multipliers to grow quickly
- Bring underrepresented groups into Canadian business
- Enhancing competition among suppliers, while encouraging innovation
- Building capacity in the Canadian economy
- Creating stronger ties to the LGBT, Aboriginal, minority, women's, people with disabilities and Veteran's communities
- Create employment in minority communities: minority owned and operating business statistically hire a greater number of minority employees
