USHCC’S Javier Palomarez Says Supplier Diversity Is Smart Business

Javier Palomarez

Javier Palomarez

According to Javier Palomarez, United States Hispanic Chamber of Commerce president & CEO, not only is supplier diversity the right thing to do, but, more importantly, it is a profitable business practice that sets a company’s brand apart and allows it to stay competitive in an increasingly global economy.
During a keynote speech at the Toyota Opportunity Exchange, he said the reality is that to be competitive in the economy of the new America, companies must recognize working with diverse suppliers is crucial to their future commercial success.
This claim, Palomarez told the packed crowd, is confirmed by extraordinary evidence. According to a study conducted by The
Hackett Group, a leading business consulting firm, companies with diverse supply chains saw a 133 percent greater return on
investments compared to their counterparts.
Companies working with minority-owned businesses also spent 20 percent less on their operations and have procurement teams half the size of their competitors, the report indicated.
“That’s the power of supplier diversity,” Palomarez stressed. “Moreover, those who work with minority-owned businesses gain a
host of additional competitive advantages.”
These perks include the loyalty of sought after diverse communities and companies that harness the talents and skills of entrepreneurs who tend to be younger, more technologically literate and innovative than their counterparts.
“Toyota has demonstrated a global industry leader isn’t defined by the healthiest profits, greatest number of vehicles sold
or the greenest technology — all of which Toyota has, by the way,” Palomarez said. “Instead, true leadership is defined by actions that cannot be quantified by metrics, but by their impact on people, businesses communities and entire nations.”
He stressed again that the reality is if you invest in a company, you invest in a community. “And when you invest in a community,
you invest in a country,” he said. Palomarez said having such power to foster the growth of minority-owned businesses creates a happy cycle of opportunity, innovation, profitability, wealth creation and the next generation of loyal customers.
“A brand’s legacy goes far beyond numbers, and Toyota’s legacy is about empowering entire communities — not through
charity, public relations or lobbying, but by being collaborative,” he noted. “Gone are the days when being competitive required
conventional business models that concentrated the wealth in traditional sectors.”
Today, Palomarez emphasized, smart business models capitalize on the power of America’s small business community. “Particularly minority-owned firms,” he concluded. “These firms bring innovative ideas that add to the bottom line and empower communities that broaden a company’s consumer base. That is smart business.”

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