The importance of women-led businesses for diverse supply chains
By Jessie Davies
The important role of women-led businesses in fostering diverse supply chains
In today's business world, the importance of diversity and inclusion cannot be overstated. One key aspect of this movement towards diversity is the growing influence of women-led businesses.
A recent study saw that 70% of companies stated sourcing diverse supply chains was either a high or medium priority for their organisation. However, it's still common to see women-led businesses not get the support needed to succeed. A recent study reported that women hold only 29% of senior management positions globally. And 2023 saw female-led founders in the UK continue to receive just a fraction of the equity investment male-led founders do. Receiving just 3.5% of equity investment compared to 85.1% of male-led firms, and 11.4% of co-owned start-ups in the first half of the past year. And as a proud WEConnect recognised supplier, we understand first-hand the benefits brought by this element included in our own leadership level.
Here we share the reasons why we believe women-led businesses are crucial for innovation in business, and why you should consider diverse supply chains when researching your next supplier.
Empowering women-led businesses
Enhancing decision-making in diverse supply chain strategies:
Effective supply chain management is critical for the success of any business, ensuring cost efficiency, customer satisfaction, risk mitigation, and enhanced flexibility. Women leaders, by virtue of their diverse backgrounds, can approach decision-making with a holistic mindset. Considering a variety of factors, leading to more informed and strategic decisions in the development and management of supply chains.
Reflecting customer diversity:
As consumers come to expect diverse supply chains as a consideration for all businesses, organisations need to align their strategies with the expectations of their customer base. Women-led businesses can offer a different understanding and cater to the diverse needs of consumers, ensuring that supply chains are designed to meet a broad range of demands, offering a unique understanding of varied consumer needs.
Diverse perspectives drive innovation:
Unique perspectives, experiences, and approaches can be a benefit organisations boast when business leadership is opened up the to different types of people. By ensuring women are at the helm of organisations, they have the opportunity to bring a different set of skills and problem-solving techniques. This diversity of thought can start innovation, and can foster creative solutions to challenges within the business.
Risk mitigation and resilience:
Women leaders can display resilience in the face of disruptions. They excel at weaving in diverse perspectives, giving them the ability to spot and tackle risks effectively. And it's this ability for embracing various experiences and problem-solving that means, within their businesses, they can respond more comprehensively and can adapt to unexpected challenges.
Empowering women in the supply chain:
Through fostering inclusivity and creating opportunities for women in traditionally male-dominated industries, businesses organically contribute to a more balanced and empowered workforce. And presenting women in leadership positions will naturally empower other women working across the entire supply chain. Serving as role models that inspire other women to pursue leadership roles themselves.
Positive impact on profitability:
Studies have shown that companies with diverse leadership, research from McKinsey & Company has shown that companies with gender diversity in executive teams outperform their peers by over 20%. This outperformance has attributed to the positive impact of diversity on innovation, decision-making, and overall business strategy.
Committing to diverse supply chains
As a majority female-led and managed business, TRIA understands the importance of committing to providing more gender visibility in the tech sector, and how it will facilitate more female representation in leadership positions for future generations. Through embracing female leadership, we won't just improve equality in the spaces we work in, but we also ensure strategic moves for a business’ continued success. And by facilitating diversity of thought, women-led businesses remain key drivers of positive change in our tech world, and continue to be pivotal drivers of positive change in shaping the future of diverse and inclusive supply chains.