A Catalyst for Change in the Supply Chain Industry
Dematic’s supplier diversity program grows through commitment and relationships.
Since launching its Supplier Diversity Program in July 2023, Dematic’s program has made significant strides in the supply chain industry in as quick as 18 months.
Dematic, named a Niche Player in the 2024 Gartner® Magic Quadrant™ for Warehouse Management Systems, designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for customers in manufacturing, warehousing, and distribution.
The company has seen substantial progress and impressive outcomes through its commitment to supplier diversity. One of the most notable achievements is the increase in diverse spending within just the first year, showcasing Dematic’s focus on fostering an inclusive supply chain.
The key to it’s early success was the ability to build relationships, says Stephanie Williams, Senior Director of Governance and Process Excellence.
“By building strategic relationships, we can educate others about supplier diversity, address the myths and misconceptions, and help people understand what diverse suppliers bring to the table,” Williams says.
A member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions, Dematic stands as a global leader in logistics and intelligent automation solutions, catering to diverse industries such as food and beverage, grocery, and apparel. The company excels in providing warehouse solutions that streamline operations, enhance productivity, and drive efficiency across customer supply chains.
When Williams joined Dematic in 2020, and recognizing the significance of diversity and inclusion across the supply chain ecosystem, the company appointed her to build on it’s legacy of solutions and service and spearhead the development of a Supplier Diversity Program.
“The extent of our supplier diversity effort at the time was reporting numbers to one of the company’s key customers,” recalls Williams, who also spent 21 years at the Ford Motor Company before joining Dematic. “And in just 18 months, we’ve made substantial progress.”
After some initial learnings, the program gained momentum with the hiring of Samantha Varela as its Supplier Diversity Manager. Varela, with 15 years of automotive industry experience and broad knowledge of it’s sectors, had already developed similar programs at other companies.
“Samantha knew what supplier diversity was supposed to look like and what foundation was needed to get our program off the ground,” Williams says. “She also worked well with people at all levels and knew how to build relationships, not just within our organization, but externally, which was necessary to gain support from colleagues, stakeholders and customers.”
With their combined expertise in supplier diversity, they successfully navigated the business landscape and began laying the foundation for the program.
“We truly work well together, united by our shared passion for supplier diversity,” Varela shares. “It’s so important that we collaborate effectively to ensure the success of our program for Dematic and our customers.”
In the initial months, the team concentrated on establishing a solid foundation for the program, beginning with data integrity. They partnered with a third-party platform to clean up existing supplier data, track diverse spending, and store supplier certificates. Using this information, strategies were formulated to increase Dematic’s diverse spend.
Next, a supplier diversity training program was created for the Global Procurement team.
“Implementing training within an organization can present challenges”, says Varela. “Nevertheless, within the first three months, we successfully developed and launched our initial supplier diversity training for our Global Procurement teams. This training was essential for our teams to understand the importance of our program and its role in promoting a more inclusive and equitable business environment.”
Finally, Dematic extended relationship-building to it’s suppliers.
“Supplier diversity is more than increasing the diverse spend, it’s about helping develop diverse supplier businesses and encouraging them to become certified so they can grow,” Williams says.
Not stopping there, Williams and Varela have embarked on a strategic journey to expand Dematic’s Supplier Diversity Program across different regions of the world. Their phased approach is designed to ensure each region’s unique cultural and business landscapes are considered, thereby maximizing the program’s effectiveness.
Phase 1 is dedicated to North America, where the recognition of supplier diversity is most prevalent. Phase 2 will concentrate on Europe, Middle East and Africa region, followed by Phase 3, which will address the Asia- Pacific region.
“Supplier diversity is essential for any forward-thinking organization, no matter where they’re based,” Varela says. “I am proud of Dematic’s commitment to supplier diversity and the opportunities that lie ahead.”
In an industry that has been slow to adapt to supplier diversity, Williams is hopeful other supply chain management companies can learn from Dematic’s example.
“I’d like our Supplier Diversity Program to encourage other companies to start their own programs and be a catalyst for change in the supply chain industry,” Williams says.
FOR more information
