One of the most compelling findings of the 2021 State of Supplier Diversity Report is a significant increase in the number of new supplier diversity programs. 40% of this year’s survey participants work for businesses with supplier diversity programs that are less than 3 years old. This same group accounted for 22-26% of all programs between 2017 and 2019, showing 60% growth in the last two years alone.

“Today supplier diversity programs have the enviable advantage of having executive leadership support and approval. Historically, this critical requirement was challenging to obtain from the executive level. These programs must now invest in acquiring the experience and the infrastructure necessary to grow into successful and impactful initiatives.”

- Neeraj Shah, CEO of supplier.io

Although many companies track and report on their supplier diversity spend, the definition of ‘diversity’ varies from company to company. Some require third-party certifications that attest to the ownership structure required to quality for such a program, while other companies allow suppliers to self-certify, essentially testifying to their own diversity status without oversight from a third party.  

Diversity and Inclusion programs are one of the top priorities for executive teams today. Businesses are trying to find ways to move the needle on diversity spend – partnering with suppliers in defined segments of the community for their own benefit, as well as for the returns realized by the company itself. 

Companies that invest in supplier diversity ultimately do so for the positive economic impact it allows them to have beyond their own four walls. But how far beyond those walls can they reach – in which localities and in which segments of the business community?