MBN USA

March 22, 2022

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Supplier diversity poised for greater heights

By Sharon Patterson, president and CEO, Billion Dollar Roundtable Inc. 

Welcome to 2022, which represents a fresh start and a reflection of where the new year is headed — forward and in a positive way. While last year presented its challenges to increase diverse spend in this complex society and supply chain, there were many opportunities that came our way.

The business case for supplier diversity indicates that if we support diverse suppliers, the income earned by minority employees at those dynamic firms would be spent in an economy that supports families, communities and corporate producers. To me, supplier diversity is an economic imperative that assures that all aspects of society participate in the economic cycle of supply and demand.

When corporations buy from diverse suppliers, those diverse suppliers are better able to pay their employees. Minority suppliers tend to hire more minorities than major corporations. When that money is used to pay diverse suppliers, they pay their employees who, in turn, spend money in their community, buying groceries, buying cars and all kinds of goods.

That economic boost creates the demand for corporations to produce more. When they are producing more, the corporations must hire more diverse suppliers. It’s a cycle, and it’s a win-win for everybody.

Consider the latest news. CNN recently reported that U.S. gross domestic product or GDP expanded by 5.7% last year, the fastest growth pace since 1984. Likewise, the U.S. Department of Commerce Bureau of Economic Analysis reported that GDP increased at an annual rate of 2.3% in the third quarter of 2021, following an increase of 6.7% in the second quarter. It was a good year, despite the pandemic.

Let’s keep this momentum going in 2022. The Billion Dollar Roundtable [Inc.] is currently collecting 2021 data that will be released later this year. We anticipate that our members’ spend is reflective of the economic growth cycle recently reported in the news.

When I think about aspirations today, it’s about you. For those of you who are influenced by and participate in the procurement process as it relates to supplier diversity, don’t give up, stay the course, energize your creative approaches and make supplier diversity the essential element that it is. Let’s make sure GDP zooms with our influence!

As we head into the new year, two words come to mind: focused intention. We must be focused and intend to do what we’re doing. During 2021, we received many calls from companies that wanted to shore up their supplier diversity programs and get to that billion-dollar spend; I think they can do it. 

Let’s be positive, stay the course and enjoy the fruits of our creative labor.

About the Billion Dollar Roundtable Inc.

The Billion Dollar Roundtable Inc. was created in 2001 to recognize and celebrate corporations that achieved spending of at least $1 billion with minority and woman-owned suppliers. BDR promotes and shares best practices in supply-chain diversity excellence through the production of white papers. In discussions, the members review common issues, opportunities and strategies. BDR encourages corporate entities to continue growing their supplier diversity programs by increasing commitment and spending levels each year. BDR inducts new members biannually. 

To learn more about BDR, visit billiondollarroundtable.org.