Why Digital Supply Chains Must Build Inclusion into Their DNA

S Evans

August 29, 2025

Boards still talk about inclusion. Procurement teams live with constraints. Budgets. Tariffs. Lead time shocks. The only way inclusion survives contact with reality is if it is built into process, data, and governance. Here is a clear view of how to do that.

1) Treat inclusion as a process choice, not a pledge

Recent research in the International Journal of Operations and Production Management shows that AI and big data can hard wire supplier DEI into procurement by changing the flow of work. The authors identify six process shifts that matter most: DEI supplier prioritisation, identification, standardisation, onboarding and engagement, digital capability development, and performance tracking. That is a blueprint you can run with.

2) Put technology partners on the hook for outcomes

The same study takes a dyadic view. It shows technology service providers act as co creators of inclusive procurement infrastructure, not just tools vendors. Treat them like strategic partners with shared success measures. It is the right way to align data, workflow, and supplier experience.

3) Align the operating model with socio technical thinking

The paper frames digitalisation as a system level integrator. Translation for practitioners: line up three layers so they do not fight each other.

Technical layer: data model, platforms, interfaces
Social layer: incentives, roles, training
Environmental layer: policy, audit, external standards
If these layers are misaligned, inclusion will stall when the first fire drill hits.

4) Watch the dark side of digital procurement

Digital capability gaps between large buyers and small suppliers can create dependence and raise the risk of opportunism. Relational governance helps to counter this. Legal contracts alone are not enough. Build safeguards into program design. For example, shared roadmaps, transparent scorecards, and dispute pathways.

5) Measure more than spend

Most teams track total diverse spend. Keep it, but add pipeline, speed, depth, and durability metrics. Good practice from industry and academia points to a wider lens.

Suggested metric set:

Pipeline width: number of verified diverse suppliers by category and tier
Time to first PO: median days from registration to first purchase order
Onboarding lead time: median days to complete due diligence and setup
Share of addressable spend: percent of category spend with at least one diverse supplier available
Penetration and concentration: number of diverse suppliers per category and top supplier share
Retention and growth: 12 month survival rate and year over year spend growth
Tier 2 reach: spend with diverse suppliers in prime supplier chains
Capability uplift: completion of agreed digital skills milestones by supplier cohort
Community impact signal: optional proxy, for example local jobs created or certifications maintained

These shift the conversation from box ticking to operational performance.

6) A 90 day build plan that works

You can move the needle in a quarter with a tight scope.

Days 1 to 30 discovery

Pick 2 to 3 categories with real volume and at least moderate supplier availability
Map the current process from sourcing request to invoice
Baseline the metrics above and extract the friction points for small suppliers
Confirm policy constraints early for example data protection, insurance, and payment terms

Days 31 to 60 design

Define the supplier data model fields you will persist and verify
Standardise onboarding artifacts into one sequence with clear service levels
Select and configure a verification source for supplier certifications
Agree the governance cadence and who owns each metric

Days 61 to 90 deliver

Run a controlled onboarding wave with 10 to 20 suppliers
Automate status messages and document collection where possible
Publish a simple weekly dashboard on the metrics above
Close with a review that locks in what works and removes what does not

7) Minimum viable data architecture

Keep it lean and auditable.

Core supplier profile: legal entity, ownership attributes, certification ids, contact, bank, tax
Evidence vault: certificates, attestations, audit logs, with expiry tracking
Risk spine: sanctions, adverse media, cyber posture summary, corrective actions
Event log: onboarding steps, approvals, timestamps, responsible person
Metrics table: one row per supplier per month for the metric set in section 5

8) Governance that does not slow you down

Use a simple RASCI for each metric and process step. Escalate on lead time breaches. Hold a monthly forum with category, legal, risk, and finance to clear blocked suppliers. Tie a small portion of category manager bonus to the metric set. Keep it visible and boring rather than loud and periodic.

9) A simple maturity path

Level 0 policy only

Level 1 track spend and publish a list of diverse suppliers

Level 2 standardise onboarding and add time and penetration metrics

Level 3 integrate supplier data into sourcing and forecasting decisions and measure retention and capability uplift

Level 4 optimise across tiers and geographies with shared roadmaps and transparent goals

Aim to move one level per two quarters in two pilot categories, then roll out.

10) Common pitfalls and how to avoid them

One big RFP then silence. Fix with quarterly micro sourcing events and rolling onboarding.
Over focus on a few large diverse suppliers. Fix with pipeline width and concentration metrics.
Treating verification as a once and done task. Fix with expiry tracking and reminders.
Digital forms that are hostile to small suppliers. Fix with human support and clear service levels.
No Tier 2 visibility. Fix with a simple clause and a quarterly Tier 2 report template.