Reasons to Prioritize Supply Chain DiversityDecember 7, 2022 2022-12-07 22:45
Reasons to Prioritize Supply Chain Diversity
Reasons to Prioritize Supply Chain Diversity
Safe’N’Clear is well aware of the importance companies are now placing on diverse suppliers. As companies focus more on diversity, equity, and inclusion (DEI) and on navigating potential supply chain shortages, the focus on diversity and stability in suppliers is increasing. According to a study on DEI in the supply chain industry by Gartner,
“While three-quarters of supply chain organizations report focusing on some dimension of diversity, only 40% are working on specific DEI initiatives. That figure does, however, represent a slight bump from last year: Our 2021 survey found that 36% of supply chain organizations had targeted initiatives for DEI.”
This push towards DEI in the supply chain industry can offer various benefits for organizations of all sizes. From handling supply chain disruptions to supporting innovation to improving your supply chain overall—focusing on diversity is a strong business move. Because Safe’N’Clear is so committed to DEI, the team behind the mask wanted to put together this guide to the critical benefits of prioritizing supply chain diversity. Read all the reasons below!
1. Help Weather Supply Chain Disruptions
2020 and the years that followed saw a variety of supply chain disruptions due to the COVID-19 pandemic. With employee shortages and other problems with the supply chain, many industries are still grappling with these delays. According to reporting by Accenture, 94% of Fortune 1000 companies saw supply chain disruptions from COVID-19, and 75% of companies have had negative or strongly negative impacts on their businesses. Because of these supply chain disruptions, many companies have had to re-evaluate their suppliers and how supply chains are handled overall.
Thinking about DEI in regard to your suppliers can help you diversify your suppliers so you have different options in place in the time of a shortage. When you choose businesses in different communities and different procedures than the partners you have typically worked with, you have more at your disposal to help weather supply chain disruptions. For example, if you get PPE from a variety of suppliers, including ones from organizations like Safe’N’Clear, if one mask company has a shortage, you can make up the difference with another one of your suppliers. When you work with an array of organizations, you can strengthen the resilience of your supply chain and better serve your customers.
2. You Can Support Innovative New Solutions
Beyond supporting you in the case of supply chain disruptions, organizations with founders from different walks of life can help you innovate more. In general, organizations with more diversity, whether internal or trusted vendors, experience more innovation.
Upon analyzing 366 public companies’ financial results and the composition of top management and boards, McKinsey reported the following findings in their study on diversity:
- Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.
- Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians (exhibit).
By working with more different kinds of suppliers, you can develop solutions that you have not conceived previously. Because these suppliers have varying perspectives, you could apply the different perspectives to make processes at your company work better.
3. Reach Your Most Underrepresented Customers
Because organizations with leadership from underrepresented backgrounds often have to innovate, the solutions may serve a customer base your company still needs to reach. At Safe’N’Clear, the team behind the mask wanted to make a mask that allowed deaf and hard-of-hearing individuals to lip read in spaces where masks are required.
While many organizations may not think about how inaccessible their PPE can be, picking Safe’N’Clear as a supplier means you can serve the disability community better. Choosing a business like Safe’N’Clear could help you meet your bottom line because you are reaching businesses with deaf and hard-of-hearing individuals in their workforce. As EY finds in their report on diverse sourcing,
“Sourcing from diverse suppliers (defined as at least 51% owned, operated and controlled by a minority, woman, LGBTQ+, veteran, service-disabled veteran, person with a disability, indigenous person, or as defined by the local country) is a social imperative that’s also good for the top and bottom line. It is a business imperative: buying decisions are often swayed when businesses can demonstrate and articulate their diverse sourcing policies. Increasing spend with diverse suppliers creates value and shows your company is serious on social commitments to its broader ecosystem: customers, investors, regulators, communities, employees, suppliers, industries and competitors. Moving from monitoring spend to measuring impact is critical to sustained supplier diversity success.”
When you show that you are committed to DEI, you show customers who care about diversity the strength of your company values. Knowing your commitment to changing the industry can be what customers need to open their wallets.
Want Safe’N’Clear As One of Your Suppliers?
As a woman-owned and certified DOBE (Disability Owned Business Enterprise), Safe’N’Clear is passionate about diversity in supply chains. If you want to add The Communicator™ to your PPE supply chain, Safe’N’Clear would be happy to help you support clear, safe communication.
Safe‘N’Clear markets The Communicator™ surgical face mask with clear window, the first FDA-approved medical mask. The mask is 100% sourced and made in the USA and is ADA-effective, allowing healthcare facilities to serve patients with accessible, transparent, and clear communication. The Communicator™ is also approved by Health Canada and Europe’s CE mark; The Communicator™ is definitely the best medical-grade mask quality-wise and communication-wise. If you are ready to get started, shop The Communicator™ mask here. You can also learn all about Safe’N’Clear here.