Article

Promoting Supplier Diversity Across the Supply Chain

June 24, 2021
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Bringing more diversity-owned companies into the supply chain is more important than ever in today’s business environment. Businesses that embrace diversity and inclusion are, in general, more profitable than those that do not. Having more diversity suppliers for companies to partner with increases competitiveness in the supply chain and can increase profitability for the companies that buy from them.

By definition, a diversity supplier is “a business that is at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group,” according to Harvard Business Review. These businesses include minority-owned enterprises (MBEs) and woman-owned enterprises (WBEs).

Working with diverse suppliers is nothing new for Provista. The leading non-acute GPO has a history of outreach to supply companies owned by people with diverse backgrounds. 

PROMOTING DIVERSE BUSINESSES ENABLES GREATER SUPPLIER CHOICE

The Provista Supplier Diversity Program supports the development of businesses that meet high standards and are owned by minorities; women; people with disabilities; lesbian, gay, bisexual and transgender people (LGBT); and veterans. Provista also strives to work with suppliers who proactively seek strategic partnerships with diverse companies.
 
The program is part of a commitment by Provista and its members to foster economic development through greater supplier choice. Members look to Provista to offer contracts with high-performing, price-competitive suppliers as well as those providing expertise and comprehensive data reporting capabilities to help them reach their diversity goals.
 
Provista’s supplier diversity team works closely with staff, members, suppliers, and certification and advocacy organizations to support members in achieving their supply chain diversity goals. Likewise, Provista works closely with several organizations that support certified minority, woman, LGBT, disability and veteran owned businesses.
 
In addition, Provista helped organize a member-led supplier diversity advisory council that meets monthly to guide the company’s overall supplier diversity strategic direction and address industry-wide opportunities with members and partners. These efforts support long-term viability for diverse suppliers and local economic development. 

DIVERSITY PROGRAM EMPOWERS MEMBERS AND SUPPLIERS

Provista offers contracts with certified diversity suppliers. The GPO’s industry-leading portfolio gives members a choice in products and services while driving competition across price, quality, innovation and service. Members benefit from a supply chain that reflects the diversity of their own workforce, patients and customers.
 
By leveraging Provista’s data and analytic support, members also gain access to both Tier 1 and Tier 2 diversity spend data. This helps members connect with national, local and community-based diverse suppliers. For members looking to create or enhance their own supplier diversity program, Provista’s expert consultants can help develop and implement a customized, long-term strategy. The strategy includes spend analysis, goal setting, developing best sourcing practices and building solutions to meet other organizational needs.
 
The diversity program helps suppliers, too, by giving them increased visibility, credibility and business opportunities with more than 280,000 Provista members in non-acute healthcare, hospitality, and other businesses. Accessing a large and diverse customer base is important for certified diverse suppliers looking to expand their business.

“Provista has been enhancing its Supplier Diversity Program for more than 20 years, and in 2021, the GPO launched four additional offerings to the program.”

MEETING MEMBER GOALS WITH 4 NEW DIVERSITY PROGRAMS

Supporting diverse suppliers across healthcare, hospitality and business supply chains can help impact the communities where facilities and businesses are located. Provista has been enhancing its Supplier Diversity Program for more than 20 years, and in 2021, the GPO launched four additional offerings to the program.

The new offerings are designed to support members’ goals of inclusivity and supply chain diversity and utilization. They include:

  1. Dedicated resources. The main goal of diverse supplier inclusion is typically to spend money with diverse suppliers. To support this effort, Provista offers a multiyear, comprehensive plan that includes alignment with bid opportunities, outreach, local and diverse supplier development, data analytics and metrics, and capacity-building.
  2. Community contracting. To help support local contracting, especially in economically distressed areas, members can access vetted Provista-contracted local suppliers in members’ own communities. This program, started in four cities, will eventually expand to 50.
  3. Supplier diversity consulting. Members can work with vetted consultants who are focused on healthcare supplier diversity. This enables members to partner with experts to develop, build, implement and advance a supplier diversity program. Services include designing and establishing a program, setting spend goals, establishing and following best practices, and advancing an existing program to a higher level.
  4. Premium supplier diversity platform. This platform supports members’ need to track and report their goals of engagement, spend and impact with diverse suppliers. Members can perform a custom search for suppliers in participants’ local communities. They can also report and track associated Tier 1 and Tier 2, sourcing and economic impact as well as perform financial risk monitoring and other analytics.
HELPING IMPROVE ECONOMICALLY DISTRESSED COMMUNITIES

To address socio-economic factors in today’s society, an increasing number of non-acute healthcare providers and health systems are supporting local suppliers, especially in economically distressed communities and regions. This aligns with the understanding that shifting supply and service spend to local suppliers helps foster job growth and economic improvement, leading to better community health.
 
Provista supports this growth and helps members meet their business and clinical needs through its Supplier Diversity Program and the newly expanded offerings.

Angela Waldrip Headshot

About the Author

Angela Waldrip is a Marketing Communications Manager for Supplier and Program Marketing

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