Supplier diversity is a business strategy that encourages companies to do business through the use of a diverse supplier base. Diverse suppliers are organizations that are owned by minority groups, women, the disabled, the LGBT community, and veterans. To be considered a diverse supplier, an organization must be (at a minimum) 51% owned, operated, and controlled by a person of a diverse background. The percentage of the workforce within an organization does not impact the classification.
Supporting supplier diversity promotes a diverse customer base and reinforces a more diverse business community. There is a direct economic impact on local economies and communities that support diversity in business. For example, in their 2018 Supplier Diversity Impact Report, CVS Health claims that ” CVS Health’s engagement with small and diverse businesses led to over $5.5 billion in contributions to the US economy and sustained 31,095 US jobs.”
The Benefits of Supplier Diversity
Many large corporations (Google, Johnson & Johnson, Pfizer, Sysco, Xerox, Amazon) embrace diversity with their supplier partners. They recognize the benefits associated with their commitment.
- Promotes the innovation of new products, services, & solutions
- Increases options for purchasing goods & services
- Creates more competition in the marketplace
- New business growth for new consumer needs as diversity allows for demographic shifts
Public Contract Bidding
Individual states have incentives for certified diverse businesses. As part of the bidding process, this could also include a certain percentage of government contracts that are awarded solely to these minority groups.
C.L. Smith is Certified as a National Women’s Business Enterprise
In 2019, C.L. Smith became certified as a National Women’s Business Enterprise. If you are looking to learn more about how to support supplier diversification through your product packaging be sure to contact us. We look forward to the opportunity to serve you as a Tier 1 Supplier.