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EDI as a strategy branches beyond the internal operations of an organisation, and so this section of the toolkit offers recommendations on how to foster and sustain diverse and inclusive supply chains. There are some really practical steps that you can take to embed EDI at the heart of your supplier strategy that do not require you to uproot your existing supply chain; here you will find some suggestions to increase the relevance of EDI in existing supplier relationships and also some suggestions on how you can adapt your procurement processes to attract future 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 - this includes procurement. Making this a pre-qualification requirement will help ensure all suppliers procured by you are committed to EDI. Taking a stance against working with organisations that do not demonstrate a commitment to EDI helps to ensure your organisation’s actions align with its words, and you are making a positive contribution to a fairer society. 

You should also consider publishing an anti-modern day slavery statement, even if it is not legally required for your organisation. Read guidance on whether it is a legal requirement for your organisation. The Home Office’s Statutory Guidance recommends that your modern slavery statement includes the following: 

  1. Organisation structure and supply chains.
  2. Policies about slavery and human trafficking.
  3. Due diligence procedures.
  4. Risk assessment and management.
  5. Key performance indicators to measure the effectiveness of steps taken.

Training on modern slavery and trafficking.

See examples from hospitality businesses D&D London and Radisson.

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 in regard to their own EDI approach. On a practical level, this can look like:

  • 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 them to be intentional about their approach to EDI 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.

Make a proactive effort to seek out and use diverse suppliers

Think about developing a supplier diversity policy and ensure your procurement team is accountable for delivering against this 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 be included as an appendix to all procurement documents, including invitations to tender and requests for proposals. Where possible, prioritise working with suppliers in your local community.

CIPD has a booklet providing information on sourcing diverse suppliers, that is full of useful information.

Kaleida is an inclusive business-to-business marketplace connecting buyers and suppliers with a focus on providing organisations committed to EDI with a store of supplier diversity data.

Supplier diversity outreach - include 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. It is important to be clear that this does not guarantee success. It simply means that organisations which may not have initially submitted a proposal will be more inclined to do so, knowing that you are interested in hearing from them.

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 - this ensures fairness and confidence in the system.