Evaluating the strength and effectiveness of your supply chain requires a deep look at many factors. First, of course, you must evaluate suppliers’ ability to meet your needs: can they deliver what you need when you need it? Quality goes hand-in-hand with delivery: can the supplier consistently meet your specifications and help you ensure your products comply with regulatory requirements? And it’s not likely that you’ll ever forget to consider the cost: Can they deliver on budget?
In the life sciences industry, however, an effective supply chain almost always has to meet additional requirements. In a recent post, we took a brief look at the impact that supplier sustainability can have on the reputation, performance, and profitability of biotechnology, pharmaceutical, medical device and other life sciences companies.
Another important supply chain consideration is supplier diversity—the practice of working with suppliers from diverse backgrounds and experiences. Often, a diverse supplier network will include businesses owned by women, minorities, members of the LGBTQ community, veterans and disabled persons.
Working with a diverse range of suppliers helps promote economic opportunity and expands the pool of suppliers available to the life sciences industry. In addition to providing opportunities to disadvantaged business owners, this can lead to increased competition, which drives innovation and lowers costs. Working with suppliers from diverse backgrounds can also help life sciences companies reach new or under-served markets, which can drive growth and increase revenue.
In addition to bottom-line benefits, supplier diversity helps promote social and cultural diversity within the life sciences industry. This allows companies to gain important new perspectives and incorporate new ways of thinking that can drive the innovation that is the lifeblood of the life sciences industry.
Women-owned and minority-owned businesses face many challenges and barriers to success, including limited access to capital, networks, and markets. By working with these businesses, life sciences companies can help level the playing field and promote gender and racial equality.
According to the National Women’s Business Council, as of 2019, nearly 13 million women-owned businesses were employing 9.4 million workers and generating more than $1.9 trillion in the United States. Similarly, according to the U.S. Census Bureau, nearly 20% of US businesses are minority-owned, generating nearly $1.4 trillion in annual revenue.
As a women- and minority-owned business, Vantage ID is uniquely positioned to understand the benefits of working with suppliers from diverse backgrounds and experiences. With more than 35% of our annual $6.5mm revenues focused on the life science space, our performance speaks for itself. In addition, we recently completed the sustainability mentorship program led by Astra Zeneca thru DA4S and are well underway with our ESG policies and management plans.
We believe working with diverse suppliers is not just ethically correct; it makes good business sense. In fact, leading industry consultants have shown that companies that prioritize supplier diversity will improve supplier competitiveness, boost innovation, and find it easier to attract and retain top talent.
If your business is ready to prioritize supplier diversity, contact Vantage ID to learn how we can help.