Inclusivity in Procurement — What You Should Know?

Inclusivity in procurement is now gaining traction as more individuals advocate for equal rights in all business aspects. However, many are still struggling with how they can have inclusivity within their procurement operations. 

In this article, we will dive right into what inclusivity means in procurement. We’ll discuss steps for promoting inclusivity in procurement and how to put your inclusivity ideas into action. 

Moreover, we are going to show the benefits of diversity and inclusion and highlight a notable example of a company advocating for inclusivity in procurement. 

Once you are finished reading this article, you will have a deeper insight into inclusivity in procurement.

You’ll be empowered to promote inclusivity, a crucial step towards achieving sustainability in procurement. So without further ado, let’s start!

What is Inclusivity in Procurement and Why is it Important?

Inclusivity in procurement is the process of actively involving diverse suppliers, partners, and stakeholders in the decision-making process.

It entails respecting and accepting various perspectives and ideas that can contribute to the overall success of the company. 

Inclusivity in procurement includes diversifying the supply chain to work with small and innovative suppliers.

Being inclusive, you value the differences and the unique qualities of suppliers that each of them brings to the table. 

You also understand their difference in terms of cultural background, capabilities, and perspectives. 

The importance of inclusivity in procurement is that it basically invites everyone without bias or prejudice based on their background.

This creates a feeling of belonging and fairness among suppliers and partners. Think of it like a big party where everyone can participate and share their ideas freely.

When everyone freely shares their ideas during brainstorming sessions, you get to see a diverse range of perspectives.

This allows you to consider all aspects thoroughly, helping you make well-informed decisions that contribute to your company’s success.

Inclusivity involves recognizing implicit biases that may influence your decisions. Implicit biases are unconscious attitudes and stereotypes we harbor towards certain groups, which can inadvertently impact decisions, such as supplier selection.

Acknowledging these biases allows you to make fair decisions that can guarantee all suppliers that they receive equal changes and are not swayed by any prejudices. 

Furthermore, by being aware of these biases, you are not just creating a more inclusive procurement atmosphere, but you are also proactively strengthening your relationship with your suppliers. 

Key Steps in Promoting Inclusivity 

Promoting inclusivity in procurement requires you to take steps to ensure that your procurement process and interactions with your suppliers are fair and just. 

Promoting inclusivity also entails creating a safe procurement environment where diversity and equality are both valued. So, how do you promote inclusivity? 

Well, here are the steps that we created to help you promote inclusivity in procurement we call EQUITY:

1. Equal opportunity

From the word itself, equal opportunity gives a fair and impartial chance to all suppliers. This key step allows you to ensure that everyone’s capabilities are considered without any discrimination. 

Furthermore, equal opportunity breaks the irrelevant factors such as personal connections or biases that can ruin your chance of choosing the best partners in the industry. 

2. Quality exchange

This step requires you to promote open and effective communication channels between you and the suppliers.  Establishing such channels creates an environment where ideas, concerns, and feedback can flow freely between you and the suppliers. 

By facilitating free communication, you can address the problems immediately and enhance collaboration that will strengthen your relationship with your partners and suppliers. 

3. Unified Supplier Network

A unified supplier network means bringing together diverse suppliers to promote fairness and inclusivity. 

You’ll build a strong and inclusive group of suppliers that represent different backgrounds, views, and offerings. This enriches the organization’s resources and opens up more potential solutions.

4. Inclusive procurement policies

In this step, you must create clear policies and procedures that prioritize fairness and inclusivity in your procurement process.

These guidelines ensure that all suppliers, regardless of their background, are considered and given equal opportunities to compete for contracts and opportunities. 

It’s about ensuring a level playing field for all suppliers, so everyone has a fair chance to participate and contribute to your organization’s success.

5. Transparent practices

You should put in place straightforward processes and decision-making methods at every step of your purchasing journey. This ensures that everyone involved, including yourself, understands how decisions are made. 

By doing so, you promote accountability and foster trust among your suppliers and partners. It’s about making sure you and everyone else involved feel confident and informed throughout the procurement process.

6. Yielding to diverse perspectives

You should embrace and appreciate the diverse perspectives and experiences of your suppliers. 

Recognize that by including everyone, you can achieve better problem-solving, innovation, and decision-making outcomes, ultimately contributing to the success and longevity of your organization. 

It’s about understanding the value of diversity and ensuring that everyone’s input is considered in your procurement efforts.

Turning Inclusivity Ideas Into Action

Now that we’ve covered the steps you can take to promote inclusivity in procurement, let’s take the next step by providing you with our template to help you implement these measures effectively.

1. Holistic Training

Begin with thorough diversity and inclusion training, covering biases and stereotypes, and considering differences in gender, culture, and race.

This ensures all your partners, suppliers, and the organization itself understand and appreciate diversity.

2. Inclusive Talent Acquisition

Try to implement unbiased hiring practices, ensuring job descriptions are inclusive and recognize diverse talent pools. 

Additionally, you should consider a variety of candidates at each stage of the hiring process, for you to be able to build a diverse team.

3. Equal Professional Growth

Provide equal opportunities for professional development, with transparent promotion processes that value diverse skills and experiences. This encourages career advancement for all your team members and partners.

4. Open Lines of Communication

Encourage open dialogue and attentive listening among procurement teams. Create safe environments for sharing experiences, ensuring respect for diverse perspectives on gender, culture, and race.

5. Adaptable Work Arrangements

Recognize the diverse needs by offering flexible work options, including remote work, to accommodate various lifestyles and situations. This promotes work-life balance and inclusivity.

6. Inclusive Language Practice 

Advocate for gender-inclusive and unbiased language in all procurement communications and company culture. This fosters a respectful and inclusive work environment.

7. Leadership Training for Inclusivity

Equip procurement professionals with training in inclusive leadership, emphasizing the importance of setting an example and supporting diversity in their teams. This promotes inclusive leadership practices.

8. Resourceful Employee Networks

Encourage and support the formation of employee resource groups that cater to the needs of underrepresented individuals in procurement. This fosters a sense of belonging and support.

9. Mentorship and Advocacy Programs

Establish mentorship initiatives tailored for procurement professionals, while encouraging leaders to actively advocate for the advancement of diverse talent. This supports career growth and diversity.

10. Regular Diversity Check-ins

Periodically assess diversity and inclusion within the procurement team, aiming for continuous improvement and adapting strategies as needed. This ensures ongoing commitment to diversity and inclusion.

11. Tailored Benefits Packages

Offer benefits that accommodate diverse needs within procurement, recognizing the unique challenges and aspirations of individuals from various backgrounds. This ensures your satisfaction and retention in the organization.

12. Cultural Celebrations

Acknowledge and celebrate cultural and diversity-related events within the procurement calendar, fostering a sense of belonging and appreciation. This promotes a supportive and inclusive work culture.

Benefits of Diversity and Inclusivity (D&I)

When you broaden your supplier base, you gain various advantages beyond merely mirroring your customer demographics.

It involves harnessing the distinct capabilities of suppliers, whether they’re experienced veterans or fresh entrants in the field, regardless of their backgrounds.

Established suppliers provide global reach and competitive pricing, while newer ones offer agility, efficiency, and local insight.

Embracing this diversity fortifies your supply chains and fosters innovation through diverse viewpoints and strategies.

Failing to prioritize diversity and inclusivity in procurement may result in missed opportunities for growth.

Therefore, partnering beyond surface appearances can lead to better outcomes and promote sustainability within your processes.

A Real-Life Example of A Company Advocating For Inclusivity

Salesforce, a well-known tech company, is a prime example of a business dedicated to diversity and inclusion. 

In 2015, they took a big step by making sure men and women were paid fairly for the same work.

They spent $3 million to fix any pay differences and ensure everyone was treated equally.

This sent a clear message that they won’t tolerate pay gaps based on gender, inspiring other companies to do the same. 

Salesforce continues to check pay fairness regularly to keep things fair. They also support groups like women and people of color and have a leader who focuses on making sure everyone feels included. 

This commitment to fairness helps their employees and the company by bringing in different ideas and talents, making them stronger together.

Conclusion

In conclusion, inclusivity in procurement is essential for modern businesses. It promotes fairness, innovation, and sustainability. 

By involving diverse suppliers and stakeholders, respecting different views, and implementing fair policies, companies can build stronger supply chains and achieve better outcomes. 

Embracing diversity not only improves decision-making but also creates a culture of equality and belongingness to all stakeholders, partners, and suppliers of the company. 

Companies like Salesforce show the benefits of prioritizing inclusivity in procurement, leading to positive results for employees and the organization.

Now, Salesforce isn’t the only one committing to inclusivity in procurement; many other large businesses are also starting to prioritize it.

Inclusivity in procurement isn’t just a temporary idea that will fade away in time. It’s a movement that should persist and become standard practice as we continue to move forward and strive to make the world a better place for everyone. 

It’s about ongoing progress and making sure that fairness and equality are integral parts of the procurement process.