{"id":87604,"date":"2024-06-13T09:42:24","date_gmt":"2024-06-13T13:42:24","guid":{"rendered":""},"modified":"2024-11-29T17:50:32","modified_gmt":"2024-11-29T22:50:32","slug":"when-looking-to-integrate-di-focus-on-supply-chain","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/when-looking-to-integrate-di-focus-on-supply-chain\/","title":{"rendered":"When looking to integrate D&amp;I, focus on supply chain"},"content":{"rendered":"<div class=\"wp-block-rbc-single-article-header\">\n\t<section class=\"section-grey cover pad-t-hlf\">\n\t\t<div class=\"section-inner w-half w-mob-full centered-margin cover section-grey pad-tb-0\">\n\t\t\t\t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/commercial-insights\/\">\n\t\t\t\t\t\t\t<span>Commercial Insights<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<h1 class=\"mar-b-hlf mar-t-0 mob-pad-lr-hlf h2 has-black-color\">When looking to integrate D&amp;I, focus on supply chain<\/h1><p class=\"mar-b-0 mob-pad-lr-hlf author-text\">By Royal Bank of Canada<\/p>\t\t\t\t\t<div class=\"featured-image-wrapper pos-rel\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?quality=80\" class=\" cover-image  wp-post-image\" alt=\"Coworkers with stacked hands at office\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg 2121w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?resize=300,200 300w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?resize=768,512 768w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?resize=1024,683 1024w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?resize=1536,1024 1536w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/06\/iStock-1496988536.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t<\/section>\n\t<div class=\"article mar-t-dbl\">\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner socials-section\">\n\t\t\t\t<div class=\"top-socials-bar mob-mar-b-hlf\">    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=When looking to integrate D&amp;I, focus on supply chain &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/when-looking-to-integrate-di-focus-on-supply-chain\/\">\n        <img decoding=\"async\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n          alt=\"envelope icon\">\n        <span>\n          Email        <\/span>\n      <\/a>\n      <div class=\"social-button-wrapper sharing-copy-wrapper\">\n        <button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/when-looking-to-integrate-di-focus-on-supply-chain\/\">\n          <img decoding=\"async\"\n            src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n            alt=\"copy icon\">\n          <span id=\"sharing-copyUrl-Label\">\n            Copy URL          <\/span>\n        <\/button>\n        <input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n      <\/div>\n    <\/div>\n  <\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner w-half w-mob-full centered-margin pad-tb-0 mob-mar-t-hlf mob-mar-b\">\n\t\t\t\t<p class=\"cover-pub-line text-xs mar-b-hlf\">Published June 13, 2024 \u2022 5 Min Read<\/p>\t\t\t<\/div>\n\t\t<\/section>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner w-half w-mob-full\" style=\"border-radius:0x\">\n<p><strong>While D&amp;I can be threaded through all areas of business, we present an area to focus on: the supply chain.<\/strong><\/p>\n\n\n\n<p>Companies seeking to incorporate diversity and inclusion (D&amp;I) should look to impart meaningful outcomes.<\/p>\n\n\n\n<p>Michelle Needles is an Executive Vice President of Occupier Services at <a href=\"https:\/\/www.collierscanada.com\/en-ca\" target=\"_blank\" data-dig-id=\"LP-87604-fffba654\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Colliers \" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Colliers <\/a>\u2013 a multinational real estate services and investment management company \u2013 and has led D&amp;I efforts with clients that seek to implement change in this space. She says that intention without action is harmful, as intention alone doesn\u2019t create opportunities for the communities it is intended to uplift.<\/p>\n\n\n\n<p>A diverse supply chain can broaden any company\u2019s impact on D&amp;I while supporting underrepresented entrepreneurs. The key is to build contractual relationships with suppliers that are at least <a href=\"https:\/\/finance.hms.harvard.edu\/service-areas\/strategic-procurement\/supplier-diversity\/supplier-diversity-classifications\" target=\"_blank\" data-dig-id=\"LP-87604-03700e52\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"51 per cent owned, operated and controlled\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">51 per cent owned, operated and controlled<\/a> by those from underrepresented groups \u2013 with the goal to build lasting alliances.<\/p>\n\n\n\n<p>It also supports the bottom line. In fact, studies have shown that minority- and women-owned suppliers save corporations <a href=\"https:\/\/www.mckinsey.com\/capabilities\/operations\/our-insights\/expand-diversity-among-your-suppliers-and-add-value-to-your-organization\" target=\"_blank\" data-dig-id=\"LP-87604-9ebffcfc\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"8.5% in annual costs\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">8.5% in annual costs<\/a>.<\/p>\n\n\n\n<p>\u201cRegardless of the business, diversity among employees and collaborators brings about new ways of thinking, new perspectives, different approaches to problem solving, and new levels of innovation,\u201d Michelle says.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">On building a D&amp;I-focused supply chain<\/h2>\n\n\n\n<p>Like any business strategy, it can be hard to know what to prioritize at the outset. One early move would be to build a supplier code of conduct that articulates D&amp;I values, communicates expectations, and serves as the foundation for relationships.<\/p>\n\n\n\n<p>Michelle suggests beginning by determining what D&amp;I data points a company has that relate to workforce and spend, and use them to set benchmarks. This process can spread awareness of the goals \u2013 and help ensure there is a throughline to those teams who have responsibility for decisions that impact those metrics (typically human resources, procurement, and relevant business lines).<\/p>\n\n\n\n<p>\u201cEstablishing metrics at the outset is important to understanding where the program is starting, how it is growing, and what adjustments need to be made to advance and adapt as progress is achieved,\u201d Michelle says.<\/p>\n\n\n\n<p>How to find diverse suppliers? While self-certification is growing in recognition, seeking out certified suppliers is standard practice for government agencies, long considered leaders in this space. Companies may consult members of the <a href=\"https:\/\/www.supplierdiversityalliance.ca\/\" target=\"_blank\" data-dig-id=\"LP-87604-328ff394\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Supplier Diversity Alliance Canada\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Supplier Diversity Alliance Canada<\/a> or the certifying entities recognized by the U.S. Chamber of Commerce. They may also decide to hire a diverse procurement consultant with knowledge of the local community to identify well-suited subcontractors. They can search for potential subcontractors registered in platforms such as<a href=\"https:\/\/supplier.io\/\"> <\/a><a href=\"https:\/\/supplier.io\/\" target=\"_blank\" data-dig-id=\"LP-87604-1c999194\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Supplier.io\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Supplier.io<\/a> that are designed to connect diverse suppliers to different types of businesses.<\/p>\n\n\n\n<p>Michelle says that one way to cultivate long-lasting relationships with these suppliers is to go beyond the initial spend and support these diverse businesses in additional ways.<\/p>\n\n\n\n<p>\u201cOne strategy would be to cultivate their talent where possible \u2013 by offering training and mentorship, or reviewing their plans to identify ways they can achieve their own D&amp;I goals,\u201d she says.<\/p>\n\n\n\n<p>To really effect D&amp;I change, companies can look past their primary supplier spend to the spend of others. Working with suppliers that are willing to prioritize inclusiveness in their own supply chains will broaden this effort even further. The deeper that diversity spend can be tracked into the supply chain, the more a company can authentically say it supports local economies and communities.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.cummins.com\/\" target=\"_blank\" data-dig-id=\"LP-87604-a6c6c107\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Cummins \" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Cummins<\/a> is one Colliers client that is committed to advancing D&amp;I and is a member of the <a href=\"https:\/\/billiondollarroundtable.org\/\" target=\"_blank\" data-dig-id=\"LP-87604-fca9e4dc\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Billion Dollar Roundtable\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Billion Dollar Roundtable<\/a> (at least $1 billion USD in annual spending with diverse suppliers).<\/p>\n\n\n\n<p>\u201cWhen we sought a global real estate partner, we challenged companies to come up with creative solutions that would help ensure we can fulfil our mission of finding diverse suppliers,\u201d says Gabrielle Woolley, Cummins Executive Director of Global Real Estate. \u201cMost important is that a strategy would be achievable for the long term as we entered a new region and built a diverse new supply chain there.\u201d<\/p>\n\n\n\n<p>Michelle and Colliers developed business intelligence software so that Cummins could analyze their pipeline of transactions and map locations over the next two years where they could hire diverse brokers. Colliers also helped Cummins build in equitable fee sharing agreements to further boost these underrepresented groups.<\/p>\n\n\n\n<p>\u201cWe\u2019ve found that relationships with our suppliers work better when we endeavour to follow this guiding principle of diversity,\u201d Gabrielle says. \u201cCommitting in this way to D&amp;I comes down ultimately to a desire to make a meaningful impact, and making sure that\u2019s part of strategy.\u201d<\/p>\n\n\n\n<p>Michelle agrees that the road to demonstrating D&amp;I commitments isn\u2019t only about saving money. \u201cWith Cummins, we sought to create a more inclusive partnership, bringing tools they would need to advance their objectives, and using their D&amp;I commitments to spread greater awareness of these issues in our own organization.\u201d<\/p>\n\n\n\n<p>Effective D&amp;I incorporates all areas of the business. Don\u2019t lose focus on the external factors \u2013 most notably, the supply chain \u2013 to help ensure a fulsome strategy.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-57738-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p>This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\t\n\t<div class=\"wp-block-tk-spacer id-4a073744-c15c-4d85-92b9-0f3f08753b4c\" aria-hidden=\"true\"><\/div>\n\t\n\n\n<p class=\"has-text-align-center h5 mar-b\"><strong>Share This Article<\/strong><\/p>\n\n\n\n\t\t<div class=\"socials-block\">\n\t\t\t    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=When looking to integrate D&amp;I, focus on supply chain &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/business\/right-sized-business-advice\/commercial\/when-looking-to-integrate-di-focus-on-supply-chain\/\">\n        <img decoding=\"async\" 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class=\"wp-block-tk-spacer id-3c10c57e-814d-4be6-b0ed-1bab703b2533\" aria-hidden=\"true\"><\/div>\n\t\n\n\n\t\t\t<div class=\"wp-block-rbc-single-post-topics related-topics-links\">\n\t\t\t\t<p class=\"h5 mar-r-hlf\">Topics:<\/p>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/commercial-insights\/\" class=\"btn topic mar-t-0 mar-r-qtr mar-b-hlf\">Commercial Insights<\/a>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/supply-chain\/\" class=\"btn topic mar-t-0 mar-r-qtr mar-b-hlf\">Supply Chain<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel mob-pad-t-dbl\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner\" style=\"border-radius:0x\">\n<h2 class=\"wp-block-heading mar-b mob-mar-b-dbl mar-t-0\" id=\"h-read-this-next\">Read This Next<\/h2>\n\n\n\t\t\t<div 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