Introduction
Modern companies actively incorporate minority-owned businesses in their supply chains. Supplier diversity programs help organizations improve their brand image, expand penetration into markets of various communities, as well as maintain ethical standards and fulfill social responsibility goals (Bateman et al., 2020; Dun & Bradstreet, 2014). Coca Cola, as one of the largest international companies, has such a program and is actively involved in cooperation with diverse suppliers. However, to increase the effectiveness of this approach, the organization needs to support small businesses from the most disadvantaged communities.
Analysis
Coca Cola as an international company has its own established supplier diversity and development program. The company has solid requirements for the company that can cooperate with it, which determines the criteria for consideration. First and foremost, a supplier needs to be “a certified diverse supplier that delivers supply chain solutions” (Supplier diversity programs, n.d). Companies must also have a business plan, be financially sustainable, have growth prospects, and offer high-quality products at competitive prices. Diverse suppliers who meet the requirements can apply by registering in the online database on Coca Cola’s website. Thus, the supplier diversity program offered by Coca Cola involves working with already established companies to ensure safe inclusion and diversification for business expansion.
The primary opportunity that Coca Cola is trying to pursue by implementing a supplier diversity program is the further expansion of supply chain options. While the main purpose of many companies within the framework of diversity and inclusiveness is to improve the brand image, as well as maintain ethical standards, Coca Cola has a pragmatic goal (Bateman et al., 2020). In particular, the company aims at “maximizing procurement opportunities and proactively engaging and building partnerships” (Supply diversity & inclusion, n.d). The company underlines that the supplier diversity program can assist in achieving better competitive advantage and long-term growth. These goals align with the organization’s vision and mission as it strives to create beverage choices for diverse populations, as well as creating a better future for communities and the planet (Purpose and vision, n.d). The supplier diversity program offered by Coca Cola is more focused on expanding business within diverse communities.
Coca Cola communicates to potential diverse suppliers primarily through the website, the suppliers development program, supplier diversity resources, and suppliers development events. In particular, the company collaborates with such organizations as National Minority Supplier Development Council (NMSDC), US Pan Asian Chamber of Commerce (USPAACC), The National Center for American Indian Enterprise Development (NCAIED), and others (Supplier resources, n.d). Additionally, the company organizes events to communicate with suppliers and present its program, such as NMSDC: Conference and Business Opportunity Exchange (BOE) (Supplier diversity events, n.d). Finally, the company has its own database of diverse suppliers, where it provides them with registration and the necessary support for the application.
Recommendation
Coca Cola has a well-developed supplier diversity program, but it needs to focus more on brand image and ethical standards. A company’s reputation can be directly linked to its financial operations through customer perception management (Jacobs & Chase, 2021). Dun & Bradstreet (2014) reports that the business-to-consumer model typically evaluates suppliers based on the market value they generate. Coca Cola follows this strategy by focusing on potential market penetration in diverse communities. To improve the brand image and make better social contributions, the organization should consider the development of small minority-owned businesses that are struggling in the modern business environment. Thus, Coca Cola will be able to improve the economic situation of the most disadvantaged communities, which is beneficial for society in the long term.
Conclusion
The analysis identified that Coca Cola’s supplier diversity program focuses more on achieving market value. However, in order to acquire a higher competitive advantage through a better brand image, a company needs to expand its efforts to support small businesses from disadvantaged communities. Coca Cola should partner not only with already successful diverse suppliers, but also provide assistance to companies in the most economically difficult conditions.
References
Bateman, A., Barrington, A., & Date, K. (2020). Why you need a supplier-diversity program.Harvard Business Review. Web.
Dun & Bradstreet. (2014). D&B supplier diversity solutions overview.Dun & Bradstreet. Web.
Jacobs, R., & Chase, R. (2021). Operations and supply chain management (16th ed.). McGraw Hill.
Purpose and vision. (n.d). Coca Cola. Web.
Suppliers diversity events (n.d). Coca Cola. Web.
Suppliers diversity programs (n.d). Coca Cola. Web.
Suppliers diversity & inclusion. (n.d). Coca Cola. Web.
Supplier resources. (n.d). Coca Cola. Web.