Building Supplier Diversity / Inclusion for Business Success: How Corporations in Europe and the USA Engage Fringe Design Service Suppliers

Supplier Diversity and Inclusion programmes have become essential pillars for corporations aiming to foster innovation, resilience, and social impact across their supply chains. While much attention is given to core suppliers, many companies in Europe and the USA are increasingly recognising the strategic value of including fringe or peripheral suppliers-such as those providing design services-in their diversity and inclusion initiatives. This blog explores how corporations build supplier diversity and inclusion programs that meet broad business needs, with a focus on integrating diverse, often smaller or niche design service providers.

Why Supplier Diversity and Inclusion Matters Across the Entire Supply Chain

Supplier diversity and inclusion programmes aim to include businesses owned by minorities, women, and persons with disabilities. These programs not only promote equity and social justice but also deliver tangible business benefits:

• Innovation and Creativity: Diverse suppliers bring unique perspectives and fresh ideas, especially critical in creative fields like design.

• Supply Chain Resilience: A broad supplier base reduces dependency on a few vendors, mitigating risks.

• Market Access and Reputation: Diverse suppliers often have connections to niche markets and communities, enhancing brand reputation and customer loyalty.

Peripheral suppliers such as design firms, marketing agencies, and consultancy services play a crucial role in shaping product development, branding, and customer experience. Including diverse providers in these areas enriches innovation and reflects authentic customer insights.

How Leading Corporations Integrate Diverse Design Service Suppliers

1. Formal Supplier Diversity Policies with Clear Inclusion Goals

Companies like Accenture and Johnson & Johnson have formal policies that explicitly include diverse service providers in their procurement processes. These policies ensure that design services-often considered peripheral-are part of bidding and contract opportunities for diverse suppliers.

2. Outreach and Supplier Identification

Corporations actively seek out diverse design firms through partnerships with advocacy organisations and supplier diversity networks like the European Supplier Diversity Program (ESDP) and MSDUK. These platforms connect ethnic minority and disability-owned businesses with corporate buyers, opening doors to new contracts.

3. Capacity Building and Mentorship

Recognising that smaller or fringe suppliers may face challenges in scaling, companies invest in mentorship, training, and networking opportunities. For example, Accenture provides diverse suppliers with access to professional development and innovation workshops to enhance their competitiveness and alignment with corporate needs.

4. Inclusive Procurement Processes

Firms implement transparent, accessible procurement practices that encourage participation from diverse suppliers. This includes simplifying registration, clarifying evaluation criteria (quality, cost, ability), and ensuring diverse suppliers are included in all relevant bids, including those for design and creative services.

5. Legal and Cultural Considerations

In Europe, procurement teams work closely with legal advisors to navigate complex regulations around positive action and data privacy (e.g., GDPR), ensuring supplier diversity efforts comply with laws while promoting inclusion. This careful approach helps integrate diverse suppliers without legal risk.

Overcoming Challenges in Engaging Peripheral Diverse Suppliers

• Visibility and Data Gaps: Many diverse design firms remain underrepresented due to limited data and visibility. Corporations leverage supplier diversity councils and databases to identify and track diverse suppliers effectively.

• Scaling and Sustainability: Smaller design suppliers may struggle with capacity or meeting corporate standards. Ongoing support and collaboration help these suppliers grow sustainably.

• Cultural Shift: Embedding supplier diversity beyond core procurement requires cultural change within organisations to value diverse perspectives in all business functions, including design.

Success Stories and Impact

• Sky’s Inclusive Procurement Strategy in the UK illustrates how media companies integrate diverse suppliers across their supply chains, including creative and design services, despite regulatory and cultural hurdles.

• Pepsico‘s $1 billion spend on diverse suppliers includes professional services, demonstrating a commitment beyond traditional goods suppliers.

• European initiatives like ESDP foster connections between ethnic minority-owned design firms and large corporations, driving inclusive innovation across industries.

Conclusion

Corporations in Europe and the USA are evolving supplier diversity and inclusion programmes to encompass the full spectrum of their supply chains, including fringe and peripheral suppliers such as design service providers. By formalising inclusive policies, partnering with advocacy networks, investing in supplier development, and navigating legal complexities, these companies unlock innovation, resilience, and social impact. Integrating diverse design firms not only enriches business outcomes but also reflects a genuine commitment to equity and inclusion throughout the corporate ecosystem.

Sources: internet resources

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Design Studio MZ+MM makes Social Procurement sensible.

Design Studio MZ+MM is a social enterprise (SEE Mark No. SEE 0114) based in Hong Kong, providing various types of graphic design services. Currently, the team is composed of hearing-impaired and hearing designers who practice disability inclusion, which is the primary reason for promoting "diversity, equity and inclusion" in corporate organizations. We support the United Nations Sustainable Development Goals SDGs: 10 “Reduced Inequalities” and 17 “Promote Partnerships for the Goals”.

In addition to providing job opportunities for diverse talents, this social enterprise also helps corporate clients implement advanced governance concepts. We also firmly believe that Design Studio MZ+MM is still the only social procurement solution practitioner and provider in Hong Kong, providing professional design services in the true sense of social procurement and adding multiple levels of added social value. To learn more about the vision and mission of this social enterprise, please click this link to jump to the Social Impact page.