Basware puts procurement pros on data-driven diversity fast-track

Supplier management solution Basware has added diversity data to give enterprises a view of who is in control of the companies they may plan to do business with.

Finnish-headquartered Basware – a global provider of networked accounts-payable automation and cloud-based procure-to-pay solutions – is sourcing diversity data from partner Dun & Bradstreet.

The company, whose partners include PWC, Accenture, KPMG, EXL, and CGI says it is a response to the growing demand for supplier diversity from their customer base. Basware is a public company listed on the NASDAQ, with 1500 employees in 14 countries. It operates in more than 50 countries in markets including the Nordics, Europe, Russia, North America, and Asia-Pacific.

Data offers shortcut to shaping supplier diversity programs

Given that increasing numbers of enterprises are now sold on the case for diversity, providing a shortcut to support appropriate supplier selection is a boon for the procurement department.

The diversity indicators in Basware Supplier Management mean customers can identify the minority-owned supplier status within their network, giving organizations the tools to shape their supplier diversity programs without the hard yards of collating data and assigning classifications.

Basware offers an open business network with an open technology ecosystem focused on delivering ‘Visible Commerce’, transparency into flows of money, goods, and services around the world.

Diversity information is captured during the onboarding process for new suppliers. Diversity indicators can also be exported to other customer systems (ERPs) via APIs.

Tangible approach turns good intentions into enterprise outcomes

As HFS Research Associate Director Josh Matthews highlighted: “Business leaders must take it upon themselves to ingrain diversity in high-level company strategies, take note of best practices, and facilitate the necessary discussions.”

According to the UK’s Royal Society, not only does diversity fuel creativity and innovation – bringing a range of ideas to cross-pollinate – it also, plays a positive part in financial performance.

Practical applications designed into our ways of working, such as Basware’s diversity data approach, provide a tangible way of turning good intentions into enterprise outcomes.

Evidence that diversity action goes beyond the HR department

It’s an example of what HFS was looking for when we called on enterprise leaders to ‘Focus your diversity efforts’ – and evidence that diversity action goes beyond recruitment policies. Procurement policy can attract and retain people through its demonstration of the kind of business you are, as well as delivering the creative and financial benefits identified above.

It remains important to:

• Embed diversity in enterprise-level strategy.
• Monitor best practices and act on the available data.
• Work with the latest sources of research—universities, think tanks, policymakers, and more—to pioneer evidence-informed initiatives.
• Improve the visibility of opportunities.
• Coordinate and discuss diversity initiatives throughout business ecosystems to foster open communication and awareness.
• Consider how best to develop role models for all within the business and wider ecosystem.

The Bottom Line: Get on the data-driven diversity fast track now or miss out on the bias-free bonus rivals are already reaping

Diversity is breaking out of the HR department and demanding attention from executives across the enterprise. From the point of view of HFS’s OneOffice mindset, that expansion beyond recruitment and retention policies reflects the value-generating reality that employee experience is a significant component of overall customer experience (Exhibit 1).

EXHIBIT 1: Employee Experience goes hand in hand with Customer Experience for HFS

Source: HFS Research 2021

Just as important as who employees see around them at work, is who they see around them in the ecosystem of suppliers they work with. Fast-tracking the removal of bias offers a competitive advantage to those who would act to shape diversity programs to access creative and economic rewards. We appreciate how Basware is taking a data-driven approach to solving a complex challenge.