How To Maximize Your Companyʼs Supplier Diversity Efforts
Using Marketing Communications to Leverage Program Awareness, Loyalty, and Participation
By Betsy L. Helgager, principal, BLH Consulting What good is a supplier diversity program if only the company and the participating vendors know about it? Today, comprehensive supplier diversity programs are a mainstay of any major corporate purchasing program. With a history of being an offshoot of Affirmative Action initiatives of the 70s and 80s, many supplier diversity programs have not entirely shaken the stigma of being a “hand out” or philanthropic in nature. However, todayʼs profit-driven and business savvy corporations are clear that having a sound supplier diversity program is a competitive advantage. “When thinking about image and reputation in general, a consumer products company should communicate all positive and solution-oriented information for its target audiences beyond its corporate hallways,” said Daryl Hodnett, group manager, P&G Supplier Diversity Development. P&G says it gained great mileage by making a public announcement about its $1.5 billion dollar Supplier Diversity goal for 2005 at the National Minority Supplier Development Council event in Atlanta during October 2001. On the grassroots level, they leveraged their sponsorship of NMSDC and hosted an event to debut a supplier diversity film, allowing them to interact faceto-face with more than 200 key constituents. “The press coverage that occurred as a result of a proactive effort communicated our sourcing intentions to our minority-owned suppliers, and more importantly, says to minority consumers that as a company, P&G values the products and services of all business people and through business relationships provides jobs and opportunities to everyone. When the maker of Pampers and Tide and Crest demonstrates its commitment to improving peopleʼs lives, we believe people remember that when theyʼre deciding which brand they will choose. Therefore, external relations is a key tactic to utilize in keeping oneʼs name out front with consumers,” said Hodnett. To fully leverage the scope and benefits of your supplier diversity program, consider starting with the following five tips when touting your program: 1. Measure and report your success. Institute a measurement component to any supplier diversity program to justify and promote the benefits of such a program. These findings can be used and fully leveraged in a multitude of marketing elements including sales and recruitment collateral, speeches, press releases, website sections and within other communications tools.
2. Move beyond touting the program once or twice a year. If you have a supplier diversity program, develop and leverage all of its assets on an ongoing basis to show a lasting, long-term commitment. If youʼre unsure of what elements you can leverage, consult with your communications department or an independent communications consultant with experience in the area. 3. Make your supplier diversity program a part of your corporate identity. A variety of audiences, from partners, shareholders, vendors, employees, and community organizations, make key judgments in part by a companyʼ s supplier diversity program. Allocate marketing dollars to ensure your key constituents know of your success. Ideally, it should be a part of the marketing budget, but if not, ensure the communication of your supplier diversity efforts is budgeted for in your supplier diversity program budget for maximum focus and attention. 4. Develop unique news hooks to intrigue media and your target audience. You donʼt have to be in the $billion roundtable category to share advancements in your commitment to supplier diversity. Ongoing news about your program and case studies, vendor relations and training, benchmarking studies, and qualification/application changes is key to keeping your supplier diversity program top of mind and possibly best in class. Consider an ongoing media relations program to keep key audiences abreast of your initiatives and progress throughout the year. 5. Saturate your available communications vehicles to tell your story. Utilize as many relevant communications tools you have at your disposal from internal newsletters, meetings, conferences, organizationʼs newsletters, press releases, brochures, website and wire services. These marketing communications tips are basic in nature, but mastered by few. Perhaps itʼs time to really look at your effort and what itʼs doing for your business and your bottom-line. Begin by asking yourself several starter questions: • • • • Whatʼs the return weʼre achieving or able to leverage because we have a supplier diversity program? Could the program be more comprehensive, and if so, what elements should be added or considered? Whatʼs our competition doing in the area of supplier diversity? How can we fill the industry gap with something innovative and achieves our desired results?
Once youʼve begun the dialog within yourself and your department or division, youʼll have a better idea if youʼre fully leveraging your supplier diversity program. If you need assistance in discovering your answers to those questions and then analyzing them to ensure
youʼre truly maximizing your program, contact your internal communications department or an independent communications consultant with a passion and understanding of supplier diversity industry nuances. Betsy Helgager is an 11-year communications veteran, formerly the vice president of Ketchum Public Relationsʼ African American Markets Group. Stepping out on her own in March 2002, she has launched her own Atlanta-based communications consulting business, BLH Consulting. Her capabilities include integrated communications program development, media relations, special event concepts and planning, sponsorship leveraging, customer communications strategies, corporate and community partnership negotiation. She also provides strategic counsel regarding effective internal and external diversity communications programs, especially around supplier diversity initiatives. For more information about BLH Consulting, call: 404.688.0415 or e-mail Betsy at helgager@bellsouth.net.