Major multinationals look to supplier diversity as they seek to appeal to a broader consumer base

Please note that this research is WFA member only content. If interested in WFA membership, please get in touch with our membership team.

Brands seeking growth through inclusion strategies are increasingly looking to diversify their supply base in the hope their marketing resonates with a broader audience and ultimately, drives growth.

New research from the WFA finds that while such supplier diversity efforts are long established at many multinationals, key challenges such as measurement and identifying potential partners persist.

Eighty-three percent of marketing procurement teams have either a programme in place already, or are building one, and among those WFA members who already have a supplier diversity programme, more than half are within their first five years of the journey. A solid 37% have been working on this area for more than a decade, however.

The results are based on 48 responses from 47 companies with a global annual advertising spend of $81.7 billion.

To support those who are looking to develop or strengthen their supplier diversity initiatives, WFA has published a new playbook which offers practical insights to consider when setting up such programmes, as well as best practice from some of the world’s biggest brands.

Developed by WFA’s Global Sourcing Board with support from members of WFA’s Inclusive Marketing Community, the WFA Sourcing Forum, as well as agency partners and diverse-owned businesses, the new resource recognises the key role marketing procurement plays in accelerating this practice, given its unique position at the intersection of external capabilities and internal business needs.

Contributors to the report highlighted the importance of supplier diversity being a collaborative effort; bringing existing suppliers along the journey by supporting them in driving greater inclusivity in their teams and with their suppliers, ensuring inclusion is embedded throughout the entire supply chain.

“When your leadership commits to supplier diversity as a priority, sustainable change resonates through every level of the supply chain. This reinforces the commitment and empowers people, creating an environment where agility and diverse ideas can thrive and driving positive impact - both within the business and across communities,” notes Manuela Gomez Valeriano, Head of Supplier Excellence & Diversity, Diageo.

The analysis identified key challenges for organisations that have embarked or were about to embark on this journey. Top of the list were the ability to track/measure supplier diversity metrics, followed by the limited availability of diverse suppliers, and the lack of certification.

Difficulty in tracking or measuring supplier diversity metrics was cited by 58% of respondents as being the key challenge in delivering an effective supplier diversity programme. Less than half of respondents (41%) said they were comprehensively measuring against their supplier diversity metrics. Fifty-five percent of respondents either have limited or no tracking, with four percent running partial tracking programmes.

Key measures being used for tracking purposes are percentage of spend with diverse suppliers, number of diverse suppliers in roster or percentage of diverse suppliers included in requests for proposal (RFPs).

The new playbook is available for all WFA members to access at https://wfanet.org/supplierdiversity.

“Getting to better and more inclusive marketing outputs means thinking differently right across the marketing process and the partners we select are critical to enabling that change. There's an opportunity for brand advertisers not only to hear from and fund greater diversity directly, but also to incentivise the full breadth of their partners to be looking for new suppliers across their own extended networks. Working broadly together as an industry we can accelerate this faster than individually,” said Jerry Daykin, Head of International Media at Restaurant Brands International and WFA Inclusion and Diversity Ambassador.

“By consciously seeking out and partnering with diverse suppliers, organisations can foster economic growth and create a more inclusive and sustainable future,” said Rupen Desai CMO and Venture Partner Una Terra.

“Supplier diversity is crucial within marketing organisations when we are in an industry that prides itself on innovation, creativity and impact. Investing in the diversity of your supplier ecosystem fosters innovation reflects your diverse customer base and strengthens your organisational brand reputation and trust. For marketers, partnering with diverse suppliers brings fresh perspectives and creative solutions, enhancing your product innovation and campaign creative effectiveness. Furthermore, it drives economic impact that aligns with your broader organisational social responsibility goals, positioning you as a forward-thinking and inclusive industry leader,” said Debbie Tembo, Inclusion Partner - Marketing, Creative Equals.

“Supplier diversity is a key pillar of our holistic approach to diversity, equity, and inclusion. We are committed to advancing the economic empowerment of talented individuals from underrepresented backgrounds by providing opportunities to further the growth and development of their businesses. These efforts are critical to helping companies from traditionally marginalized communities thrive, ensuring their unique perspectives, capabilities and lived experiences are fully represented in business as well as the marketplace and society overall. While we have made significant progress, there is still far more work to be done,” said Singleton Beato Global Chief Diversity, Equity & Inclusion Officer, McCann WorldGroup.

“I’d love us to just shift the mindset from thinking about supplier diversity as a DEI initiative or a DEI work stream. This is a critical factor in driving business success,” said Hattie Matthews Co-founder & CEO Uncharted.