The Value of a Diverse Supplier Base

If the supply chain crunch of the past few years has any silver lining, it’s the lesson that restricting your vendor options to one or two sources can backfire. If you’re considering broadening your circle of suppliers, you might want to look within your own community—and find partners you’ve never considered before. 

At Associated Bank, we’ve embraced the ideals of diversity, equity and inclusion (DE&I). Commitments such as our Supplier Diversity Program—part of our overarching objective to increase opportunities for Minority and Women-owned Business Enterprises (MWBEs)—have resulted in mutually beneficial business relationships and an expanded community network. 

Senior Vice President of Commercial Banking Christopher Hamilton attests to this success: “Working with diverse suppliers leads to innovation, access to new markets and a competitive advantage. Businesses that employ this approach can serve a wider range of clients, bring jobs to local underserved communities and attract additional customers and employees.” 

By selecting suppliers from a variety of backgrounds, businesses of all sizes and industries can see real benefits. 

Innovation and Creativity 

Diverse suppliers bring unique experiences to the table, which can lead to innovative ideas and creative solutions. In a competitive marketplace, this can drive product or service improvements to stand out from the rest.

Market Expansion 

Suppliers from different backgrounds can help your business tap into new markets they might not reach otherwise. You may also discover cultural nuances that can aid you in tailoring offerings that build new customer bases and even translate into better navigation of complex global markets. 

Social Responsibility and Branding

A concerted effort to partner with diverse suppliers shows that you’re genuinely committed to social responsibility. This can enhance your reputation and brand perception, influencing customers who value diversity and inclusion.

Employee Engagement

Demonstrating your commitment to DE&I extends beyond your customer base. Employees are often proud to work for a company that supports it, leading to improved morale and higher levels of engagement.

Competitive Advantage 

Encouraging a broader supplier base can foster healthy competition, resulting in better pricing and service terms. They may also offer unique products and services that not only fit your business goals but can give you an edge over the market and your competition. 

Ultimately, incorporating a broad array of suppliers into your business's supply chain strategy isn't just about ticking boxes; it's about leveraging the very real benefits of DE&I: fresh perspectives, backgrounds and potential for innovative progress and positive economic impacts on our communities.

Connect with us today to learn more at AssociatedBank.com/MMAC