This blog was originally published on 2/8/2018 and updated on 12/22/21.

What is the difference between Tier 1 and Tier 2 supplier diversity spend?

Every company is part of a larger supply chain that includes third party product and service providers. Some of those suppliers, known as prime suppliers, work directly with the company and others are one or more steps – or tiers – away in the supply chain. Although prime suppliers are the top priority for supplier diversity programs, you will quickly find that the potential for impact scales quickly when you consider Tier 2 and beyond.

For the third year in a row, we surveyed supplier diversity professionals and diverse suppliers across an array of industries. By asking them about their successes, trials, and tribulations, we aimed to learn more about the state of supplier diversity and what progress still needs to be made. The survey includes multiple-choice and open-response questions—it’s often the latter that are the most revealing.

We know that small businesses are a vital component of our economy. According to the U.S. Small Business Administration (SBA), there are nearly 30 million small businesses in the United States, accounting for a whopping 99.9 percent of all U.S. businesses, and 8 million of those are classified as diverse businesses. These 30 million small businesses make a significant impact on our economy through job creation and innovation.

It is a universally acknowledged truth that where there is a successful, effective supplier diversity program, there is a C-suite committed to the success of that program. Supplier diversity professionals know that C-suite buy-in is crucial to building an inclusive supply chain, but how do you gain not just support but also passion for supplier diversity throughout your organization? Let’s break it down by position and talk about how you can show your company’s leadership how supplier diversity helps the business meet its goals and achieve bottom-line results.

Are you struggling to find qualified diverse suppliers to meet internal goals? Are you looking to expand your pool of potential diverse suppliers as you build a sustainable, inclusive supply chain? Do you want to normalize the inclusion of diverse suppliers in the procurement process? Enter the well-crafted supplier questionnaire: a tool that can save you time and energy while you gather valuable information and promote supplier diversity.