Benefits of Monitoring Supplier Diversity In Your Supply Chain

Mitigation of Operational and Reputational Risks
‍Supply chains that lack diversity are exposed to various operational and reputational risks. A lack of diversity can lead to limited perspectives, hampering innovation and problem-solving capabilities. It can also increase the likelihood of discriminatory practices, resulting in legal and compliance issues. Assessing supplier diversity in supply chains allows you to identify potential risks and take proactive measures to mitigate them. By ensuring equitable treatment, diverse representation, and inclusive practices throughout your supply chains, you can reduce the chances of discrimination, exploitation, and labor violations.

Drive Long-term Sustainability and Stakeholder Engagement
Incorporating supplier diversity principles into your supply chains aligns with the broader goals of sustainability and stakeholder engagement. Social sustainability encompasses fair and ethical practices, and supplier diversity is a fundamental aspect of this. By assessing and promoting supplier diversity, you contribute to building a sustainable supply chain ecosystem that respects human rights, promotes fair labor practices, and fosters inclusive economic development. This resonates with stakeholders such as investors, employees, and communities, who increasingly prioritize sustainable and responsible business practices.

Enhanced Brand Reputation and Market Positioning
‍By assessing and promoting supplier diversity in your supply chain, your business will significantly enhance its brand reputation and market positioning. In today's socially conscious world, consumers increasingly value and support companies that prioritize supplier diversity initiatives.

How It Works

Each supplier gets a score based on FRDM’s supplier diversity risk algorithm along with any assessment information the supplier chooses to provide.
The supplier diversity risk algorithm consists of multiple indicators such as the DEI Country Index and the US Bureau Of Labor Statistics. Each supplier loaded into FRDM gets risk scored for the industry(s) it works in, country(s) it operates in, products or services it provides, and trading partners it does business with (requires Trading Partners Module). In addition FRDM screens for any adverse media involving your supplier related to supplier diversity risk keywords.

Suppliers can be invited  to link to your dashboard via their own SUPPLIER LINK DASHBOARD which allows them to provide relevant certifications, policy assessments, and additional information about diversity practices.

Supplier’s scores change accordingly based on the maturity of their certifications, policies, and additional information. FRDM aggregates all supplier scores into an impact page where you can track progress over time as well as generate reports for external use.