Lordon Inc. received its first Women Business Enterprise certification from the State of NJ in 2003. Since then, the company has also obtained certification from the Women’s Business Enterprise National Council (WBENC), The Supplier Clearinghouse and State of NJ Small Business Program (SBE). This enables Lordon, Inc. to participate in both Government and Corporate Supplier Diversity Programs.
What is a Supplier Diversity?
Supplier diversity is a business practice centered around the idea that a businesses should use suppliers and vendors that represent the diversity in the communities they serve. Through supplier diversity initiatives, corporations and government entities look to include minority/women/ and or veteran-owned businesses as part of their supply chain and company operations. Supplier diversity ensures that corporations diversify their supply chains and offer products and services sourced by companies owned by these groups, leading to better products and inclusion throughout their supply chain.
Tiers of Supplier Diversity
Different levels of service are often referred to as tiers in the world of supplier diversity. Tier 1 Programs indicate that a supplier invoices the customer for goods and services rendered directly by that supplier. Tier 2 programs includes suppliers that invoice the first-tier supplier for goods and services rendered. Second Tier sourcing programs allow smaller diverse businesses to grow and prosper at different levels of the economic food chain while maintaining scalability and sustainability.
Benefits of Supplier Diversity
Independent research has shown that companies who focus heavily on supplier diversity generate a 133% greater return on procurement investments than their counterparts. The difference is typically attributed to MBEs’ ability to deliver equal value at a lower operating cost than their competitors.
In addition, by supporting minority suppliers, your company will make a direct impact with minority communities in our country and position you to become a top brand among those respective demographic segments.