Supplier diversity pays off
By Staff -- Purchasing, 9/7/2006 6:00:00 AM
procurement organizations that focus heavily on supplier diversity don't sacrifice procurement savings to do so. Those are the findings of a recent Hackett Group report that showed the typical company today spends 8% with diverse suppliers, while world-class organizations spend slightly more. However, the top-performing companies can turn that spending into a bigger advantage.
“While the direct revenue impact of these programs is very difficult to measure, we've seen cases where companies directly attribute supplier diversity programs to specific increases in market share,” said Hackett's procurement practice leader Chris Sawchuk. Hackett's research also found that companies that focus heavily on supplier diversity are able to generate 133% greater return on the cost of procurement operations than average performers.
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