New Study Shows How Diversity and Inclusion Boost Supply Chain Success

The Association for Supply Chain Management (ASCM), in collaboration with SHRM and the SHRM Foundation, has released a new report titled “The Power of IE&D in the Supply Chain: Unlocking Resilience and Growth.” This report shows the strategic importance of Inclusion, Equity, and Diversity (IE&D) within the supply chain industry, revealing how effective IE&D practices significantly enhance competitive advantage, recruitment, and retention.

According to the report, nearly three-fourths (73%) of supply chain managers believe their companies outperform competitors when IE&D is implemented effectively. Additionally, over three-quarters of HR professionals at companies with strong IE&D practices report low turnover rates and higher employee satisfaction, with staff more likely to recommend their supply chain department as a great workplace.

“Inclusion, Equity, and Diversity are not just moral imperatives; they are strategic advantages in supply chain management,” said Johnny C. Taylor, Jr., President and CEO of SHRM. “An inclusive approach fosters a sense of belonging and commitment among all stakeholders, significantly improving morale and productivity. IE&D makes supply chains more adaptable and responsive to global market changes, leading to better customer service and stronger competitive positioning.”

Despite the widespread presence of IE&D initiatives, the report highlights that their effectiveness is often lacking. Only 29% of supply chain managers and 20% of HR professionals rate their company's IE&D efforts as very effective. The research identifies several critical gaps and challenges that companies must address to realize the full benefits of IE&D.

Key Findings from the Report:

Ineffective IE&D significantly influences the likelihood of supply chain employees leaving their company, particularly among women and workers of color.
Employees who feel their company is ineffective in IE&D are 4.5 times more likely to experience burnout. Women are six times more, and workers of color are ten times more likely to consider quitting within the past six months.
Large, publicly traded companies with supply chain departments are most likely to have IE&D initiatives, but their program quality lags behind others.
Companies with highly effective IE&D initiatives have programs that span more than twice the number of business areas compared to those that are less effective.
Organizations are three times more likely to achieve significant IE&D progress when supply chain leaders are held accountable for these achievements.

Abe Eshkenazi, CEO of ASCM, stated, “Strengthening IE&D initiatives is essential to developing and retaining exceptional talent, resulting in more resilient supply chains. Scaling back or eliminating IE&D leaves companies vulnerable to staff shortages, resignations, and production delays, ultimately hurting the bottom line. Business leaders must involve all departments in IE&D strategy planning and encourage company-wide prioritization of IE&D.”

The report offers actionable strategies for companies to enhance their IE&D efforts, including:

Establishing buy-in and involvement at the highest levels.
Creating IE&D goals and holding leaders accountable for achieving them.
Ensuring supply chain departments are integral to the IE&D conversation.
Applying IE&D creatively across different business operations.
Utilizing training as a resource, not the sole solution.

The findings from this report highlight that while addressing IE&D challenges is complex, the effort yields substantial benefits for both employers and employees, driving resilience and growth in the supply chain industry.