What is Supplier Diversity and Why is it Important?
Founded in 1972, the National Minority Supplier Development Council (NMSDC) is “the longest-operating business growth engine for the broadest group of systematically excluded communities of color (Asian-Indian, Asian-Pacific, Black, Hispanic, and Native American).” While striving to initiate growth and opportunity through Supplier Diversity channels is a major focus area, NMSDC notes that its impact goes far beyond the supply chain. “It’s about upward mobility for the emerging majority of Americans, an equal shot at participating in the American experiment of free-market capitalism and entrepreneurship. Our work is about correcting the unequal access to wealth-building opportunities.”
What is Supplier Diversity?
Law Insider defines Supplier Diversity as “a program that encourages organizations to purchase goods or services from businesses owned by individuals who are historically marginalized or underrepresented in that jurisdiction, such as racial minorities, women, Aboriginal/Indigenous people, and persons with disabilities.” Simply put, Supplier Diversity means creating opportunities for diverse suppliers.
Why is Supplier Diversity important?
In an article titled, “Why You Need a Supplier-Diversity Program,” Harvard Business Review states that, “An inclusive procurement strategy widens the pool of potential suppliers and promotes competition in the supply base, which can improve product quality and drive down costs. And by providing more sourcing options, inclusiveness can make supply chains more resilient and agile — an increasingly important advantage in these uncertain times.” Additionally, it can also be a selling point when hiring and attracting top talent.
Beyond the economic advantages of Supplier Diversity there are social benefits as well. In fact, Supplier Diversity can be a valuable aspect of DEIAB and “part of a company’s efforts to maintain high moral and ethical standards.” According to Harvard Business Review, “A handful of socially conscious major companies have long played a role in addressing racial injustice through supplier diversity programs that promote an inclusive approach to procurement. As the spotlight on systemic racism roils the United States, these programs are more important than ever, yet too few companies have them….”
Proving growth for MBEs is growth for all.
NMSDC, along with 23 regional councils across the country, including The Eastern Minority Supplier Development Council (EMSDC), advocates access to the American dream for MBEs. As the nation’s largest and most impactful non-profit advocacy organization for MBEs, our success is historic and unmatched: over 15,000 MBEs connected to more than 1,700 corporations, resulting in nearly $400 billion in economic output annually, generating $130 billion in tax revenue, and sustaining 1.75 million jobs. For more information, visit nmsdc.org and emsdc.org.
The mission of the Eastern Minority Supplier Development Council (EMSDC) is to stimulate and support economic development with minority-owned businesses throughout Pennsylvania, Southern New Jersey, and Delaware, in an effort to initiate growth and opportunity through Supplier Diversity channels. As an affiliate of the National Minority Supplier Development Council (NMSDC), we certify and connect MBEs with member corporations that are committed to supplier development and want to purchase their products, services, and solutions.