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Supplier Diversity Blog by supplier.io

5 Ways to Streamline Your Tier 2 Reporting


The successful supplier diversity program includes robust Tier 2 spend, but collecting and reporting that data can be cumbersome and time consuming. Streamlining Tier 2 reporting through strategic partnerships, automation and validation not only saves time and money, they allow you to report results with confidence and focus on building relationships with primes and subcontractors.

These five strategies for streamlining Tier 2 reporting can boost the efficiency and efficacy of your supplier diversity program.

1. Identify primes who are already reporting into other customers and request that they report their diverse spend to you as well.

Partnering with Tier 1 suppliers that have the capability to track and report Tier 2 spend and who also share your organization's diversity objectives makes it easier to influence Tier 2 spend, and saves you the time and resources required to train primes on the importance of supply chain diversity, tracking and reporting. Work with primes to set goals for Tier 2 spend and make it easy for them to report it to you.

2. Send automatic notification reminders to primes about reporting period deadlines.

Automating manual, time-consuming tasks as much as possible is critical to streamlining your reporting. Increase efficiency by asking primes for a primary contact responsible for reporting Tier 2 spend to your organization, then communicate with that person about deadlines and other matters related to meeting diverse spending goals. Reduce administrative workload by implementing a tracking platform that includes the ability to set up automatic supplier notifications and follow-ups with non-responsive primes.

3. Automate verification of diversity status.

Further automate your processes by utilizing a tool that encompasses a robust supplier database to verify the diversity status of your Prime’s subcontractors who they are reporting against.

Supplier data changes constantly, which means your supplier diversity team must actively monitor merger and acquisition activity, ownership changes and updates to certification or classification status to reduce supplier risk and maintain the integrity of your diverse spend. Using a comprehensive database to automatically verify diversity status every reporting period saves time and money, as well as using a tool to restrict the ability for primes to report non-verified suppliers is key to allowing you to report accurate Tier 2 spend with confidence.

4. Collect and report spend by business unit and/or contract.

As part of your organization’s strategic sourcing initiative, expand the scope of your Tier 2 tracking by adding contract level and business unit reporting for additional levels of spend tracking visibility and transparency. Often tracking these metrics reveals business units lacking in diversity and also enables supplier scorecarding against contract specific goals.This can increase Tier 2 spend and wider organizational participation.

5. Audit dollar amount of spend that primes report.

A successful supplier diversity program requires accountability and transparency from its suppliers so you have confidence when reporting your organization's spend. In addition to verifying diversity status, by checking against a master supplier database, it is important to validate reported diverse spend is accurate through auditing directly Tier 2 diverse suppliers primes are reporting. As an example, seasonal spikes may arise in various industries, and without auditing your prime’s suppliers you may not know if in fact that spend amount is accurate. use data enrichment tools, such as a supplier database, to validate reported diverse spend from primes. Taking into account seasonal spikes in various industries, should discrepancies or outliers appear during an audit, reach out to the prime’s Tier 2 spend contact person to clarify data.

As this process can be cumbersome, utilizing a tool to automate verification checks on a quarter by quarter basis will greatly increase your confidence in dollar amount of reported spend, as well as reduce your manual workload.

Streamlining your Tier 2 reporting improves efficiency, saves time and money. Reducing administrative workload enables your supplier diversity team to focus on identifying opportunities and developing relationships with suppliers, further growing your organization’s supplier diversity program.


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The team has a long history in driving innovative solutions in supplier diversity. We believe that companies deserve solutions that are effective and provide measurable value and results. Started more than a decade ago, supplier.io has rapidly become a prominent provider of supplier diversity solutions to leading corporations. We currently support customers in automotive, healthcare, insurance, retail, manufacturing, education, and banking. One in five Fortune 50 company relies on supplier.io.