In our 2024 Distribution and Logistics Sector Trends report, less than half (47 per cent) of respondents said their organisation has a clear diversity, equity and inclusion (DE&I) strategy which is owned and driven by the HR Director or CPO, compared with 55 per cent on average across all industry sectors. The distribution and logistics sector is falling behind when it comes to hiring and supporting a wide range of demographics. This presents an opportunity for businesses to stand out from the crowd by implementing a strong, modern DE&I strategy, led by the C-suite.
DE&I is fundamental
The issue identified by the Distribution and Logistics Sector Trends report was not lack of DE&I measures, but the qualitative nature of the efforts. More businesses in other industries are prioritising DE&I as a key strategy — led from the top — rather than a company programme — a nice-to-have often led by individuals lower down in the managerial hierarchy. The former approach positions DE&I as a fundamental part of your plan for business growth; long-term, non-negotiable, and measurable. This is appropriate as a more diverse and inclusive workplace is not only morally imperative, but translates to real business value, with ethnically diverse companies 35 per cent more likely to outperform, and gender diverse companies 15 per cent more likely to do so.
DE&I must be approached as a foundational business necessity, not just a buzzword. When DE&I is led from the ground-up, in an ad-hoc way, it is easy to focus on a particular element without seeing the bigger picture of how diversity, equity and inclusion interact. Diversity refers to the range of demographics, skills and perspectives represented in your employee base, and inclusion relates to how happy and secure your team is, feeling a sense of belonging, even when part of a minority. Equity is the important final piece of the puzzle, encompassing how different groups are actually treated by the business, for example when it comes to pay rises and likelihood of promotion. Equity-focused policies and practices can make the difference between a talented individual flourishing or leaving the industry.
A strong DE&I strategy will look at all three of its aspects and how they work together. For example, publicising inclusion efforts drives the ability of companies to hire diversely, as traditionally less-represented groups looking for jobs will see evidence that they have a place on the team. Conversely, diversity and inclusion will be stymied before they start if the actual company infrastructure is not geared towards ensuring all employees get equal treatment, with a rigorous equal pay model and anti-bias training for leaders. Put the power in the hands of those with the overview of the entire business and the ability to make and enforce overarching changes, by ensuring DE&I is the problem and passion of your C-Suite.
DE&I in action
For HR directors, managers, and C-suite executives, the diversity gap presents not just a challenge, but an opportunity — a chance to lead from the front, setting an example that filters throughout the entire organisation. Take the UK and Ireland operation of freight shippers XPO Logistics, where diversity is led by the CEO Brad Jacobs who embeds it “top-down” with “completely unwavering commitments”. Multiple initiatives interact under the broad goal of changing the narrative of who the supply chain is open to. Actions include sponsoring Pride festivals for inclusion, working with an employment program run by the Downs Syndrome Association, for diversity, and a development programme called ‘XPO Rise’ which coaches talent for future leadership positions, for improved equity in executive roles. A series of many different initiatives form a cohesive strategy, championed from the top, to ensure that DE&I becomes a genuine part of company culture.
DE&I is a three-pronged approach designed to ensure no stone is left unturned when it comes to creating a truly modern, representative business. By championing DE&I at the highest level and genuinely ingraining it into your distribution and logistics organisation, you can distinguish yourself from other businesses falling behind in the sector.
