You’ve heard of being sustainable in the supply chain.
On the same note, it’s important to be diversified. Diversification means expanding your reach and tapping into uncharted territory, which can be accomplished both geographically and socioeconomically.
Enlarge your scope. Make a list of your current suppliers and double it to suppliers that are smaller, further away, granular, big-picture, or more flexible. That’s the power of geographically maximizing your portfolio—it will always reflect something new when it’s not always what is local.
With this approach, a business is never limited to the changing market trends and customer demands because there are many other suppliers that are not construed to the same problems as some global enterprises may be. This helps decrease backorders and perpetuate meeting demands even when supply is down.
Dropping your pin in various supply chains geographically allots a company the added benefit of:
In a world full of consumers who deeply align with companies that speak to their core values and needs, ethics and responsibility have made heaping tears in the traditional supply chain design. A diverse workforce and inclusive culture foster purpose-driven growth. Companies that participate in long-term supplier diversity programs generate 133% greater ROI than companies that use suppliers that are only tried and true.
Inclusive supply chains are not new, but they have recently gained traction as a result of consumers being more socially conscious now than in previous generations.
To meet consumer expectations for corporate social responsibility (CSR), companies are making a congregated effort to improve societal responsibility and uptick their favorability in the eyes of the public by catering to a multitude of initiatives.
Casting a wider net is the building block of a superior portfolio that allots a company the added benefit of:
72% of consumers believe companies should have a legal responsibility to people and the planet. Companies are starting to share this belief as many large-scale enterprises now run social responsibility report summaries that are open to the public and outline how they are making a difference. Companies like Exxon Mobile and Chevron are enabling human progress and have detailed specifications on which initiatives they support which is garnering a lot of attention. Many customers, shareholders, and potential investors review these summaries before deciding to invest or purchase from a business.
Above are just a few of the ways diversifying your supply chain is key to overcoming regular challenges that many supply chains face from a lack of branching out their operations. If you’re ready to discuss more about how you can optimize your supply chain holistically, connect with our team today to receive curated solutions that can alleviate even your most troubling pain points.