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Supplier Diversity
Making An Intentional Commitment to Supplier Diversity
Supplier diversity is a strategic commitment to provide equitable access to purchasing and contracting
opportunities for diverse businesses. Some of HIDA’s member companies have had supplier diversity programs for 30 years or more. The conversation on supplier diversity is being driven by our customers, especially healthcare providers serving historically underrepresented communities. These healthcare entities are becoming more intentional about purchasing healthcare products from diverse suppliers.
By Stephanie Reed, Director of Education, HIDA
Supplier diversity is an important goal for many reasons. It promotes innovation, identifies new sources of talent and rewards experience. It encourages competition, which improves product quality and drives down costs. Supplier diversity builds wealth and creates health equity in the communities we serve. Consider this: Healthcare is 18% of the GDP of the United States. That’s over $4 trillion. But the total diversity spend in healthcare is estimated at $6 billion. That’s just 0.15% of that total. A strong supplier diversity program allows healthcare systems to promote wealth in the communities they serve, which ultimately supports improves health equity.
HIDA is working to promote supplier diversity. In September, we convened our firstever Supplier Diversity Summit as part of the fall Streamlining Healthcare Expo & Business Exchange. This summit was inspired by HIDA’s commitment to diversity and inclusion. The overflow crowd heard from panelists who urged an intentional approach to sourcing from diverse suppliers.
Distributors have a role to play in supplier diversity, by helping providers meet their goals. Distributors can create their own supplier diversity programs and assist providers in identifying qualified and certified diverse suppliers. “The key to a strong supplier diversity program is having buy-in from your organization’s C-suite and leadership ranks,” said Bill Moir, Senior Vice President for Supply Chain Management at Henry Ford Health in Detroit, Michigan. “Once this becomes an organizational priority then having dedicated resources to lead the program and developing a strategy to identify, engage, and award to diverse suppliers are key next steps in your supplier diversity journey.” ʯ Network. Network. Network. Distributors should partner with a minority company to assist in the creation of a first-class program. ʯ Don’t Wait To Be Asked. Be proactive by presenting diverse suppliers to your provider customers. Provide a list of MBEs and the products that they distribute. ʯ Ask The Right Questions. Be Inquisitive.
Ask providers questions to gauge their supplier diversity needs. Does the provider have Supplier Diversity goals and initiatives?
What is the dollar goal of the provider?
Where is the desired need for spend – on services, products, etc.?
