Support Growing for Supplier Diversity
The recently released 2023 State of Supplier Diversity Report by Supplier.io reveals that nearly 90% of companies are planning to either maintain or increase their support for supplier diversity in the coming year. Despite the prevailing economic conditions, where 69% of businesses reported minimal impact on their supplier diversity programs, 89% anticipate continued or heightened support for these initiatives.
Continued Promotion: Companies are not shying away from promoting their supplier diversity programs, even in the current political climate. Only 7% plan to decrease public promotion, while 38% will maintain the same level, and 16% intend to increase their public promotion efforts.
Executive Support and Accountability: In 2023, 97% of companies report consistent or increased executive support, with 72% now establishing clear supplier diversity goals (up from 68% the previous year). Additionally, 48% have incorporated supplier diversity metrics into their management key performance indicators (KPIs).
Broad Business Value: Supplier diversity programs continue to provide substantial business value. Companies are investing in these initiatives to enhance their brand image (53%), secure new business opportunities (46%), and align with corporate culture and workforce inclusiveness goals (81%).
ESG Impact: Supplier diversity programs are shown to drive Environmental, Social, and Governance (ESG) performance, with 55% of respondents indicating that supplier diversity contributes to their overall ESG strategy.
Data-Driven Initiatives: Data is the cornerstone of successful supplier diversity programs, and 67% of companies are now utilizing third-party data services to improve their programs—a 44% increase from the previous year. Moreover, 56% note an improvement in the quality of diversity data available compared to the previous year.
Aylin Basom, CEO of Supplier.io, emphasized the significance of supplier diversity, stating, "Supplier diversity remains an intentional and essential supply chain strategy.
"Our research continues to show wide-ranging investments in diverse businesses of all types – including SMBs, veteran- and women-owned businesses, minority-owned organisations and more. Programmes have matured substantially over the past few years, resulting in a bigger impact for the businesses and across the global economy.”
Aylin Basom, CEO, Supplier.io
“Reliable data remains the lifeblood of supplier diversity programs,” said Basom. “Our research found that three of the top four challenges associated with supplier diversity programs today relate back to data, which correlates to the increased adoption of third-party sources we’re seeing across the market. Investing in your data remains the most important step to baseline, grow and expand your program. Supplier diversity is now a driving force in ESG strategies and outcomes, especially across the supply chain.”
Benefits of a Supplier Diversity Program:
- Enhanced brand appeal to a diverse audience
- Encouragement of competition among suppliers, leading to cost savings and innovation
- Reinforcement of Corporate Social Responsibility (CSR) efforts, making the organization more appealing to investors
- A positive impact on the company's reputation as an employer"