Finally, in the Calendar section, we suggest a few sustainability-related events in the coming few months that you might want to investigate.  

Happy reading! 

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These days, I'm often asked about the relationship between supplier diversity and supply chain sustainability. Clients and colleagues want to know whether supplier diversity should (a) be a part of their supply chain sustainability program, (b) sit separately but closely alongside it or (c) is something altogether different. Very often, when they ask this, they are in the "(b)" or "(c)" modes. Spoiler alert - in my view, best practices suggest the "(a)" approach (while still calling it out as a Supplier Diversity program).

The Institute for Supply Management's Glossary of Key Supply Management Terms defines supply base diversity as "an organization's efforts to include different categories of suppliers in its sourcing process and active supply base and to address the opportunities and challenges that arise from differences and similarities." And it defines "sustainability" in the "sustainability with a capital S," triple-bottom-line way. So what do these two concepts have to do with each other in a supply-facing context? Well, actually, a great deal in my opinion.  

• First, diversifying a supply base to include HUBs, MBEs and others can be seen as a component of supply chain Sustainability. Creating and engaging with suppliers from historically underrepresented ownership groups (e.g., woman-, minority-, veteran- and/or LGBT-owned businesses) creates positive social and economic supply chain impacts by providing these companies with significant opportunities to expand their own businesses. For the company investing in supply chain Sustainability, supplier diversity can be an important strategy in aid of reaching its social responsibility goals.

• Second, it's important to acknowledge that sourcing from diverse suppliers, many of whom might be small-to-medium enterprises (SMEs), often presents challenges on the Sustainability front. This is especially true when the companies selected don't have significant experience or capacity on the environmental and/or social responsibility fronts. While it can be tough going at first and may seem at cross purposes to achieving Sustainability goals, if a company views itself as "owning" its entire supply chain (as Sustainability "leaders" often do), then taking efforts to engage with diverse suppliers around Sustainability in a way that builds their capacity to deal with these issues turns the challenge into an opportunity. It is in this way that the engagement of a diverse supply base on Sustainability can help propagate environmental and social responsibility deeper into the supply chain.

• Finally, on the "what should a company do with these two aspects of supply chain management" question. Best practices suggest a strongly integrated approach, where supplier diversity is part of the company's core supply chain Sustainability strategy. This requires an explicit commitment at the most senior SCM level, as well as the tactical discipline to create management systems that reflect this approach (i.e., category managers who have accountability for diversity, environmental and social goals). In addition, it requires that the company hold its own Tier 1 suppliers accountable for their own supplier diversity efforts, right alongside their other Sustainability scores. Scoring direct suppliers on their diversity achievements may not seem like part of a traditional "sustainability" program, but when looked at through the lens of taking ownership for the positive (and negative) effects of the entire supply chain, it all makes sense.

Check out our "Ideas You Can Use Now" section below to see how you can put these concepts into practice in your situation.