Thursday, August 24, 2006
Emphasis on Supplier Diversity May Help, Not Hamper, Your Bottom Line
Connecting with women- and minority-owned suppliers is often perceived as a costly, administrative hassle that doesn't offer any return on investment. A recent study conducted by the Hackett Group gives this perception the lie: their research shows that top-quality procurement organizations using diverse suppliers generate $3.6 million in revenue for every $1 million spent. The companies that earned the highest returns from diverse supply connections did so by trumpeting the fact that they use diverse suppliers. Apparently the good PR appealed to consumers and investors with a sense of social responsibility, driving revenues up. Sounds like good business all around to us.
- National Minority Supplier Development Council
- Women's Business Enterprise National Council
- Business.gov (US Federal Government site, includes resources about diverse suppliers)
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