Supplier Diversity - Measure in Years, not Months
1 light year = 9.461e+15 in metres.
So there’s no mistake, as I see you all reach for your scientific calculators and google searches fields, that’s exactly 5,878,792,849,757 miles.
You wouldn’t measure light years in metres, we don’t measure speed in weight, and I, certainly post Covid, no longer measure my weight at all (crowd roars with laughter).
The success of a supplier diversity programme should be measured over a period of years, not months.
A long term commitment.
Market leaders with successful Supplier Diversity programmes like CBRE, Unilever, and P&G each made public commitments to achieve spend targets with Diverse Suppliers ‘in 5 years’ (from their announcement).
Why is this important?
For both the Buyer and the Supplier, regionally speaking, EMEA and ASIAPAC are at the relative beginnings of their Supplier Diversity journeys.
Success takes time and must be given a fair chance to eventualise.
Knowing what to look out for, and how to measure success is crucial to the internal adoption of a Supplier Diversity programme.
Here are 5 measures of success for your Supplier Diversity programme that you should consider:
✅ Diverse Supplier count.
Has the number of Diverse Suppliers in your supply chain gone up?
✅ Total spend with Diverse Suppliers.
What is your total spend with Diverse Suppliers YoY
✅ Percentage increase in spend.
By what percent did your spend go up?
✅ Accessibility and participation.
How easy is it for Diverse Suppliers to find your Tenders opportunities, and how many are invited to Tender?
✅ Successful bids and awards.
Participation is great, but how many Diverse Suppliers are being awarded bids that eventually have a positive impact on their economic outcomes?
What other ways are you (planning on) measuring the success of your Supplier Diversity programmes?
For more information on the other ways to measure the success of your Supplier Diversity programme, contact me to set up a consultative discovery call.
About Us
"Finding Diverse Suppliers is time-consuming as the process today involves researching against multiple databases."
Founded in 2019, Kaleida International is a B2B marketplace for Tenders connecting Buyers to Suppliers, and Diverse Suppliers. With a focus on helping the Chief Procurement Office achieve its ESG goals, and alerting companies to new revenue opportunities, Kaleida's fully-inclusive platform helps Buyers find, identify and assess Diverse Suppliers they can invite to Tender.
In 2023 Kaleida will publish £600b in both Public and Private sector tenders for suppliers, and Diverse suppliers to apply to. By increasing access to commercial opportunity, we believe we can drive equality through providing access to economic parity.