Are you looking for ways to grow your supplier diversity program?
What is supplier diversity and how can your company benefit?
Supplier diversity is a procurement practice that involves purchasing supplies from businesses that are owned by minorities or women. Typically, larger companies have a policy that involves an intentional focus on diversifying their suppliers.
Tier 1 and Tier 2 Supplier Diversity Spend
When it comes to diversity spend, there are two main categories: tier 1 and tier 2. In order to have a successful supplier diversity program, a company needs to include both types of suppliers.
Tier 1 Supplier
Tier 1 suppliers are the companies that directly sell supplies and resources to the company.
Example: Your Company needs a particular product or service. In order to fill this need, your procurement department sources this software from TMC. TMC directly sells the product to your company. This makes TMC your tier 1 supplier.
Tier 2 Supplier
As a Tier 2 supplier is the company that provides the tier 1 supplier with the product that is to be sold to the end user. Our customer may not be a minority owned business, but they get the products they sell from TMC Workforce Solutions. In these instances TMC is a tier 2 supplier. When we don’t sell directly to the company, but they supply the companies that do.
Simply put, TMC Workforce Solutions Inc. can help your company save money and drive increased revenue. According to a study done by The Hackett Group, procurement organizations that embrace supplier diversity are able to generate up to 133% higher return on their investments than organizations that don’t.
One of the reasons for this is the fact that TMC tends to be leaner. We enjoy greater agility and tend to have lower operational costs, which means we can pass the savings onto you.
Key Benefits of the Service
Customer-centric businesses build a virtuous cycle we call the customer wheel. We help companies at every stage of growth, developing custom solutions and collaborating with all levels of your business.
- We help you understand customer behaviors
- We help break down barriers to innovation
- We help resolve the pricing paradox
- We help align brand strategy with key objectives
- We help companies nurture loyal customers who are more profitable