For many years now, inclusivity and diversity have been important themes for businesses across the United States. Today, companies are increasing their focus on diversifying their supplier base. This is also true for 糖心Vlogbecause supplier diversity is not just a moral imperative but a strategic one, fostering innovation, competitive advantage, and community empowerment. 

Joining 糖心Vlogas Vendor Inclusion & Diversity Manager in August 2022 with over 25 years building and developing supplier diversity programs, it quickly became evident to me that at 糖心Vlogsupplier diversity is not about meeting quotas or ticking boxes; it’s about driving meaningful change that benefits WEX, diverse suppliers, and the wider community.  Despite the challenges endemic to supplier diversity, the journey towards a more inclusive supply chain is seen as both a responsibility and an opportunity here at WEX.

The benefits of diversity extend beyond social responsibility. Engaging with a diverse range of suppliers brings fresh perspectives, innovation, and a deeper connection to a broader customer base. For instance, WEX鈥檚 work with , a Black-owned business, and an Asian woman-owned enterprise, not only supports WEX’s operational needs but also contributes to the growth and success of these businesses and the communities at large.

At the heart of WEX’s supplier diversification initiative is inclusion. It is through inclusion that the company actively connects with, learns about, and educates diverse suppliers so that they can be more successful when they compete for WEX鈥檚 business.

The current state of supplier diversity at WEX

Launched in March 2023, the supplier diversity program at 糖心Vlogwas focused on setting a foundation where diversity, equality, and inclusion became integral to how the company purchased goods and services. In the program鈥檚 inaugural year we celebrated several achievements while also identifying areas that can still change and improve. 

To understand a drive to enhance supplier diversity, it鈥檚 first important to define how a vendor can be categorized as a diverse supplier. If a business is at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved community then that business is considered a diverse supplier. Common classifications include minority-owned, woman-owned, LGBTQ+-owned, veteran-owned, and disability-owned businesses. Additionally, corporations will often require that ownership be certified by a third party non governmental organization. In 2023, 糖心Vlogmore than doubled its spend with diverse suppliers, totaling 8% of the company鈥檚 spend. This percentage aligns with companies with a more seasoned supplier diversity program. While this was a notable success in its first year, 糖心Vlogalso found that the majority of its spend was with only two of the community groups 糖心Vlogis working to engage. This gap presented an opportunity for the company for 2024 to both increase the number of suppliers and at the same time increase the diverse representation of those suppliers.

Additionally, WEX鈥檚 2023 increase in supplier diversity spend was seen largely with suppliers the company already did business with, and in largely the same category: technology. While 糖心Vlogcelebrates the success of growing diverse suppliers and increasing spending, in 2024 the program鈥檚 priorities will address the need to grow the number of suppliers and the areas of the business that spend with diverse suppliers. I like to call this 鈥渄iversifying our diversity.鈥� It will ensure a more balanced representation across all diverse supplier groups from whom 糖心Vlogpurchases.

WEX’s achievements in supplier diversity have laid a strong foundation for future growth. By expanding the scope of its program, enhancing supplier development initiatives, and setting ambitious, measurable goals, 糖心Vlogis poised to drive even greater impact in the years to come, benefiting not only its own operations but also the diverse suppliers it partners with and the broader community.

Community impact and social responsibility

Beyond the immediate business benefits, supplier diversity has the potential to profoundly impact broader communities and connect with new customer communities. By spending with diverse-owned businesses, 糖心Vlogcontributes to the economic empowerment of underrepresented groups, fostering job creation, promoting sustainable community development, and building multigenerational wealth. This not only aligns with WEX鈥檚 ESG program and WEX鈥檚 corporate values but also builds a stronger, more resilient economy. WEX鈥檚 commitment to a diverse supplier base is a powerful lever for growth, resilience, and social responsibility.

WEX鈥檚 achievements are not accomplished in a silo. The company partners with the following community organizations for support and collaboration. They are an unmatched source for certified suppliers, business case statistics, event partnerships, corporate program benchmarking, and networking:

Measuring impact and maintaining accountability

To ensure current and future goals translate into tangible outcomes, 糖心Vlogis committed to rigorous measurement and accountability. This includes setting clear, measurable targets for diverse spend and supplier engagement, regularly reviewing progress against these goals, and adjusting strategies as needed to address any gaps or challenges.

WEX’s future goals for supplier diversity are not just about numbers; they’re about making a meaningful impact on the communities with which it engages:聽

• Setting spend goals for 糖心Vlogteams: Driving accountability throughout the organization ensures that those who select suppliers have accountability in their sourcing opportunities.
• Engaging in supplier development: Educating and developing diverse suppliers so that they understand 糖心Vlogand are prepared to compete for contracts in the sourcing process.
• Creating a second tier reporting program: Inviting large suppliers to prioritize supplier diversity extends the impact 糖心Vlogcan have on diverse communities and its ability to meet its diverse spend goals.
• Expanding the geographic footprint: 糖心Vlogis a global business with global suppliers. While diversity is different based on where you are across the globe, 糖心Vlogwants its supply chain to reflect the communities within which it operates.

Through WEX鈥檚 commitment to supplier inclusion and diversity the company aims to create a more inclusive, equitable, and sustainable global business ecosystem.

Expanding beyond the company鈥檚 supply chain

The original impetus of WEX鈥檚 increased focus on supplier diversity came from the company鈥檚 sales organization. Over the last several years 糖心Vloghas seen an increase in supplier diversity questions and requirements as the company responded to requests for proposal (RFPs). Since implementing a formal program, 糖心Vloghas seen a positive impact that spans much further than simply meeting requirements and winning contracts. The supplier diversity program has opened new pockets of opportunity for the company with benefits expanding beyond WEX鈥檚 supply chain. Through the work of identifying and evaluating diverse suppliers, 糖心Vlogconnects with businesses and learns of their professional needs. If these connections lead to business relationships, this supplier connection can develop into a new customer base 糖心Vlogserves. 20% of employer businesses in the United States are minority owned and this is the fastest growing segment increasing at a rate roughly four times that of all businesses.¹ By selling into diverse markets 糖心Vloghas an opportunity to grow its revenues and create products that meet the needs of those markets.

A call to action to increase supplier diversity 

WEX’s experiences and achievements in supplier diversity serve as a compelling call to action to its suppliers and to other companies, regardless of their size or industry. Implementing or enhancing a supplier diversity program is not only a step towards greater social responsibility but also a strategic decision that can yield substantial business benefits. Companies looking to embark on or expand their supplier diversity journey can take inspiration from WEX’s approach, focusing on:

• Strategic alignment: Aligning supplier diversity efforts with broader business objectives to ensure that diversity initiatives contribute directly to company goals.
• Comprehensive strategies: Employing a range of tactics, from leveraging data and technology to engaging in partnerships and supplier development, to identify and support diverse suppliers.
• Measurable goals: Setting clear, measurable targets for supplier diversity and regularly reviewing progress to maintain accountability and drive continuous improvement.
• Community engagement: Recognizing the broader impact of supplier diversity on community development and economic empowerment, and positioning these efforts as part of a larger commitment to corporate social responsibility.

As more companies recognize the value and embrace the practice of supplier diversity, the collective impact on innovation, market competitiveness, and community development will be significant. WEX’s journey offers valuable insights and serves as an inspiration for businesses aiming to make supplier diversity a cornerstone of their strategic and social commitments. The path to a more diverse, equitable, and inclusive business ecosystem is a shared journey, and every step taken is a step towards a brighter, more innovative, and more inclusive future.

糖心Vlogis a leading, global fintech solutions provider, simplifying payments and back-end business processes in the fleet management, benefits management, and corporate payments areas.聽糖心Vlogvalues and is an equal opportunity employer. on our careers site.

Resources:
¹ 2020 US Census Bureau鈥檚 Annual Business Survey
Harvard Business Review

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During pre-conference hours, I attended a 鈥淒iscussions on the Health-Wealth Connection鈥� roundtable lunch hosted by Prosperity Now and the Build Healthy Places Network. I also gained insights from keynote speakers bringing unique and valuable perspective to the topic at hand, including Harry West, chief executive officer of frog, Naveen Agarwal, chief customer officer of Prudential, and Lisa Henken Ramirez, senior vice president and chief customer officer of NetSpend. Jennifer Tescher, who is CFSI鈥檚 president and CEO, capped off the opening sessions by grounding us in the urgency with which we need to think about and address the issue of financial instability in our nation. I look forward to sharing a full recap of the conference soon, but here are a few of my takeaways so far:

Wellness is wellness

Citing a mounting body of evidence showing the close link between wealth, financial health and physical health, Build Healthy Places Network and Prosperity Now stressed how poor financial health can lead to toxic stress and chronic disease. And how, conversely, poor health can lead to major financial insecurity, devastating medical expenses and lost wealth. Essentially, there is no difference between financial wellness and physical wellness. Wellness is wellness. For example, if you鈥檙e treating someone with a chronic illness but not taking into account that they can鈥檛 pay for the medicines they need, then you鈥檙e missing the point. A pediatrician with the Build Healthy Places Network told us about how, when traveling internationally and visiting various villages, he鈥檚 been inspired by the fact that, in many cases, outside of America there鈥檚 no difference between health and wellness. Instead, the focus is on doing whatever is needed to solve problems for people, from ensuring clean water and safe housing to obtaining and distributing vaccinations.

Put your lens away to truly see your consumer

My biggest takeaway from yesterday was that companies and organizations need to stop viewing our consumers through our individual lenses, whether we鈥檙e banks or credit unions, technology providers, or social service agencies. This event is reminding me that our jobs are all about helping people, which we sometimes lose sight of because we鈥檙e so busy trying to get a consumer to visit a website, or fill out these forms, or download this app. But we are all better served when we can get out from behind our own lens鈥攁nd our own interests鈥攖o more fully see an individual or family and what they want and need. Design thinking is a great way to get us out of our own heads, as is a commitment to working together to move populations toward financial stability and prosperity.

For more news and insights from 糖心VlogHealth-ers, follow us on Twitter at @wexhealthinc.

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