Suppliers
EDI action should look not only at your policies and practices for your own workforce but also how you select and collaborate with your suppliers.
In your procurement, you can take simple steps like encouraging existing suppliers to engage with EDI and incorporating EDI requirements into your contracts. Large organisation can take steps to make their procurement process as transparent and accessible for small ethnic-minority-owned businesses.
This section of the toolkit offers recommendations on how to foster diverse supply chains and use your purchasing power to boost collaboration on EDI in the digital and tech sector.
Encourage existing suppliers to improve diversity in their organisations
Committing to supplier diversity does not mean you must uproot your existing supply chain and start again. Rather, having a great relationship with your existing suppliers is likely to place you in a position to encourage and influence them on their own EDI approach. On a practical level, this can involve:
- Sharing your commitment to improve EDI in your supply chain, focusing on why this is an important objective for your organisation.
- Expressing your desire to continue a working relationship with them.
- Engaging in conversation with your suppliers regarding the diversity of their workforce and any EDI activity they are currently engaged in.
- Encouraging progress on EDI action, and committing to change where there are identified shortfalls.
It is important to recognise such change may take time and rushing this process could create friction with your supplier. Too much pressure may result in ‘performative action’ rather than real, meaningful change. Keep talking and working with your suppliers to refine their approaches to EDI.
''Our customers come from every nation, culture and walk of life, and it’s important that all aspects of our business reflect that same diversity.''
Incorporate EDI as part of your contract requirements for procurement
Being intentional about EDI means recognising the value that it can bring to every aspect of your business, including procurement. Making this a pre-qualification requirement will ensure that all suppliers appointed are equally committed to diversity and inclusion. Taking a stance against working with organisations that do not demonstrate a commitment to EDI helps to ensure that your organisation’s actions align with its words, and you are making a positive contribution to a fairer society.
You may wish to set out a supplier diversity charter that outlines the types of businesses that you want to work with. See an example of a supplier diversity charter from Capita.
Consider developing a supplier diversity policy to ensure your procurement team complies with your EDI commitment. This policy should clearly outline how contractors will be assessed in their approach to EDI, both in the initial tendering process and throughout the length of the contract. This policy should appear as an appendix to all procurement documents, including invitations to tender and requests for proposals.
Make a proactive effort to seek out and work with diverse suppliers
When using external suppliers, the overall responsibility for EDI remains with the business instructing those suppliers. It is crucial that each business makes a proactive effort to seek out and use diverse suppliers. Asking organisations about their understanding of and commitment to EDI can help you work out whether you would like to engage further with them or not.
It is important that procurement managers have an understanding and belief in the business EDI strategy, to ensure and encourage a diverse supply chain. An organisation’s choice of suppliers has a direct and significant impact on its own workforce, and highlights its commitment to EDI. By making it clear that your business partnerships are rooted in a core set of shared values like EDI commitment, you will be able to better identify suitable organisations.
''Big companies need to make their supply chain and opportunities much more attractive to small businesses. Simplification is the way forward. There needs to be realistic definitions to make procurement processes simpler for onboarding suppliers because that is making doing business with large corporates very unattractive''
Supplier diversity outreach, including tips on your website for how to do business with your organisation
An open and transparent approach to procurement will help ensure all potential providers are clear on your requirements. This can be particularly helpful for small independent companies or contractors who may have less experience with tendering.
Reaching out to minority-led suppliers and inviting them to tender is a small step you can take to greatly increase the diversity of your submission pool. You can also help such minority-led suppliers by creating training and/or mentoring programmes that support them in undergoing the procurement process. This won’t guarantee supplier diversity by itself, but it will prompt organisations to tender where they may not have initially considered themselves eligible or competitive.
While you may wish to adopt this approach, any tips and advice should be advertised publicly on your website for all potential bidders to see. Some businesses have created their own supplier diversity programmes with the aim of connecting minority-led suppliers to opportunities within their business.
- Google has a Supplier Diversity Programme, designed to connect more minority-owned businesses to opportunities within Google.
- Mastercard also has a Supplier Diversity Programme, overseen by its Global Diversity and Inclusion Council (GDIC). Their programme sets out their commitment (including details on their policy, ownership, responsibility and networks used for outreach) as well as an overview of business opportunities for diverse suppliers.
- Accenture has an Enterprise and Supplier Development Programme, which aims to increase the participation of black-owned SMEs within both their own supply chain and in the wider economy.