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Supplier diversity is the process of reaching out to groups not traditionally included in the supply chain, including women-owned businesses that want to compete for contracts. A supplier base that reflects the growing diversity of Canadian businesses in particular and the population in general makes good business sense. Women are involved in 85% of purchasing decisions, but receive a very small fraction of large contract opportunities, despite the innovative and quality products and services they are bringing to the marketplace at an escalating pace. WEConnect Canada estimates that Canadian women-owned businesses comprise less than 5% of all domestic and international suppliers to corporations and governments. The result: women's businesses don't grow, big business misses out on value and innovation, and national productivity and GDP suffer.
It is important for Canada to mirror the growth of supplier diversity spreading through multinational corporations in the U.S. and U.K. Over 95% of Fortune 500 companies have supplier diversity programs that target historically underutilized businesses, expand buyers' choice, and boost innovation, competitiveness and market knowledge.
With the trend towards contract bundling in the US, over 80% of multinational corporations are now requiring supplier diversity efforts from their tier one and tier two suppliers. They advertise this "spend" with diverse populations, and are taking their business practice global, setting new benchmarks for measuring and celebrating diversity in supply chain contracts they award. Women-owned businesses are well positioned and ready to work at all points in the supply chain, local, national and international.
WEConnect Canada is about encouraging and supporting women-owned enterprises to take advantage of procurement opportunities. It's about levelling the playing field and enabling women to have a fair opportunity to tender for contracts. After that, it is business as usual - women's firms must go through the standard corporate or government tendering process, and be assessed on their merits with no regard to gender.
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