When large organizations make the conscious and active decision to diversify their supply chain, there are normally many positive payoffs.
What are the 3 typical reasons to why the implementation of supplier diversity goes wrong?
Less mature policy and procedure
The use of diverse suppliers usually involves changing the way you procure. Diverse suppliers as a rule are smaller, carry lower levels of insurance, may not have mature business policies and procedures, and may be put off if you ask them to participate in a complex tendering process.
Lack of information
You should be aware of the fact that the main barriers to engaging with diverse suppliers are a lack of knowledge and information, from simply awareness as to the existence of such companies, to how to best contact them and include them in your business.