How Supplier.io Helps Constellation Enhance Resilience

With the business world constantly evolving, supplier diversity and responsible sourcing have become essential for establishing resilient, transparent and sustainable supply chains. 

Speaking to Supply Chain Digital, Aylin Basom, CEO at Supplier.io, explains the importance of enhancing supply chain intelligence, incorporating diverse and sustainable suppliers and data accuracy and transparency when building resilient supply chains.

She also shares how Constellation, the largest producer of carbon-free energy in the US, leverages Supplier.io’s platform to enhance supply chain resilience and support community growth. 

Tell us a bit about yourself and your role

As the Chief Executive Officer at Supplier.io, I lead our efforts in revolutionising global supply chain management through transparent and responsible sourcing.

Our platform leverages purpose-built AI to enhance resilience, competitiveness and transparency in supply chains, providing intelligent sourcing strategies and critical insights into supplier diversity and sustainability data. 

At Supplier.io, we empower global companies to not only drive bottom-line impact but also ensure regulatory compliance and boost overall supply chain efficiency.

My two decades in the technology sector have been dedicated to delivering innovative SaaS solutions, leading high-performing teams, and fostering partnerships worldwide. We are committed to demonstrating how integrated supplier intelligence can build more resilient and responsible supply chains, while driving  business growth, community impact and sustainability.

For those unfamiliar with Supplier.io, what are the company's main activities?

Supplier.io is a leading SaaS provider specialising in responsible sourcing and supply chain intelligence. Our platform equips organisations with the tools they need to enhance supply chain visibility, integrating sustainability and supplier diversity data seamlessly.

With access to the industry's most extensive and reliable data – featuring more than seven million suppliers, at least five million diversity and small business certifications and comprehensive sustainability ratings – we're at the forefront of empowering global supply chain transformations.  

Our solutions power some of the world’s most successful responsible sourcing, providing organisations access to the largest database of supplier data, making it easy for them to find alternative sourcing options efficiently. Additionally, our platform delivers critical insights into primary emissions data and net-zero targets, supported by Supplier.io’s strategic partnerships with CDP and alignment with the Science Based Targets initiative (SBTi).

We also assist companies obtaining detailed ESG risk profiles for their strategic suppliers, aligning with the United Nations Sustainable Development Goals (SDGs). This comprehensive approach not only drives business growth but also helps measure and manage the social, economic and environmental impacts of supply chains.

What benefits can companies gain from enhancing their supply chain intelligence and incorporating diverse and sustainable suppliers?

Enhancing supply chain intelligence and integrating diverse and sustainable suppliers provide numerous strategic benefits that bolster resilience and competitiveness:

• Economic Impact: Utilising small and diverse suppliers drives significant economic impact for both companies and the communities they serve. According to our 2023 Economic Impact Report, Supplier.io customers supported more than 1.3 million jobs through their diverse supplier spend, generating US$104bn in income and US$31.4bn in tax revenue. 
• Enhanced market research: Small and diverse suppliers offer valuable insights into local markets and customer communities, which can improve product development and marketing strategies. By utilising suppliers that come from or represent the communities they serve, companies can better meet the needs of existing customers and tap into new markets.
• Supply chain resilience: A diverse supply chain reduces dependency on single sources, increasing flexibility and mitigating risks. This resilience is crucial for navigating disruptions and ensuring operational continuity. 
• Reputation and brand strength: In today’s market, customers and stakeholders place a high value on transparency and ethical practices. Organisations that demonstrate a commitment to these values can differentiate themselves from competitors and build brand loyalty.
• Win more RFPs: Responsible sourcing can enhance a company’s prospects in competitive bid scenarios, meeting the demand for inclusivity and sustainability in supply chains.
• Cost efficiency: Engaging with a broad range of suppliers fosters competition, which can result in better pricing and procurement terms.
• Innovation and creativity: Diverse suppliers often bring unique perspectives and innovative solutions, enhancing overall supply chain management.

How crucial are transparency and data accuracy to the success of supplier diversity?

Transparency and data accuracy are essential to the success of supplier diversity programmes. Accurate data is crucial for understanding total spend with small and diverse suppliers.

However, traditional methods such as error-prone spreadsheets, surveys and self-reported data can be unreliable. In fact, Supplier.io’s 2023 Supplier Diversity Best Practices Report indicates that self-reported data can be up to 50% inaccurate. Ensuring data accuracy is essential for the efficacy of responsible sourcing initiatives and their contribution to tangible business outcomes.

Accurate data also plays a critical role in risk management. A transparent and well-documented supply chain allows companies to identify potential vulnerabilities and mitigate risks more effectively. By ensuring that supplier data is both accurate and comprehensive, organisations can build a more resilient supply chain, capable of withstanding disruptions and maintaining continuity even in challenging times. 

Overall, transparency and accurate data are vital for informed decision-making and the success of supplier diversity initiatives. By implementing these strategies, organisations can effectively navigate the complexities of supplier diversity programmes and drive meaningful impact.

What sets Constellation’s supplier diversity programme apart?

Constellation, the largest producer of carbon-free energy in the US, sets apart its supplier diversity program by integrating it dynamically across the organisation and embracing it as a business imperative. This approach transcends traditional siloed methods, making supplier management a core aspect of operations.

By diversifying its supplier base and exploring alternative sourcing strategies, Constellation enhances supply chain resilience and competitiveness. Its commitment to supplier diversity is a key component of its competitive edge, helping it to safely and reliably operate the largest nuclear fleet in the US, supply energy products and services to about 75% of the Fortune 100 and maintain an impressive portfolio of customers – all while economically empowering communities.

One of the standout features of Constellation's programme is its annual planning process, where business unit leaders across 110 spend categories identify diverse sourcing opportunities 12 to 24 months in advance. Also, it shares a 12 to 24-month forecast of contracting opportunities with suppliers. This forward-thinking strategy maximises the inclusion of diverse suppliers, ensuring procurement value and supply chain resilience. Transparency and data accuracy are also crucial to its success. 

Constellation blends diverse spend and economic impact data with compelling narratives to demonstrate how supplier diversity supports company goals and the full customer value stream, further demonstrating how supplier diversity supports top-line and bottom-line growth. This data-driven approach helps it measure progress, identify improvement areas and align with strategic priorities. Solid leadership further strengthens its initiatives, ensuring that supplier diversity leaders have a seat at the table and are integral to key business decisions. This holistic approach not only drives meaningful change and fosters collaboration but also unlocks new opportunities for growth and innovation, making a significant economic impact in the communities they serve.

How did Supplier.io help Constellation generate impact through its supplier diversity strategy?

Constellation is a shining example of how best practices, cross-company support and advanced analytics can empower supplier diversity programmes to make a tangible impact.

By leveraging Supplier.io’s platform to analyse and manage diverse supplier data, Constellation has transformed the tedious, manual task of supplier research and management into a streamlined, efficient experience that links departmental goals and initiatives to day-to-day operations.

As a result of this consolidated experience, Constellation can easily identify new small and diverse suppliers, especially those in the local communities it serves, without navigating multiple sources.   

By making data transparent and accessible, Supplier.io empowers Constellation to demonstrate the positive impact of its responsible sourcing programme on the company and the community. It can effectively track spending to the jobs and taxes they support, reinforcing the business case for supplier diversity. This not only simplifies the procurement process but also highlights the substantial economic benefits, showing that supplier diversity is not just about social responsibility but also about driving economic impact and business growth.

Why was Supplier.io uniquely positioned to help Constellation improve business outcomes?

What sets Supplier.io apart is the unrivalled scale and quality of its supplier database. Our platform serves as a single source of supplier intelligence data and solutions, enhancing supply chain visibility, managing responsible sourcing and benchmarking against industry peers. 

By leveraging Supplier.io’s tools, Constellation not only advanced strategic objectives but also measured the economic impact of itssupplier diversity initiatives. For example, in 2023, it was able to support more than 20,000 jobs through small and diverse suppliers, demonstrating the substantial economic benefits of integrating diverse suppliers into core business practices. This data-driven approach provided by Supplier.io enables Constellation to strengthen the business case for supplier diversity, highlighting its role in driving economic impact and business growth beyond simply fulfilling social responsibilities. 

Through our collaboration, Constellation was able to seamlessly align its procurement strategy with business goals, enhancing overall supply chain efficiency and resilience.

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