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Supplier Diversity Blog by supplier.io

What Is a Supplier Diversity Certification?

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We recently conducted a survey of diverse suppliers, and these two statistics about supplier diversity certification stood out: Of the 143 respondents that identified themselves as a minority-owned business and the 120 that said they were women-owned businesses, 90% of each stated they were certified as such.

Although the survey attracted a high number of established diverse businesses, the stats confirm that certification is important to today’s suppliers, especially as large companies’ supplier diversity programs continue to pick up steam. Organizations are looking to increase diverse spend, and supplier diversity certification is the best way to be included in that diverse spend. Businesses that aren’t certified simply will find themselves at a disadvantage. 

Here is a deeper look at supplier diversity certification and why it’s so essential in 2017: 

Supplier Diversity Certification, Explained

Any supplier can classify itself as diverse, claiming that at least 51 per cent of ownership is by an individual (or multiple people) of a diverse background. However, just because a business says it’s diverse doesn’t necessarily mean it is, and most companies with supplier diversity programs require certification before considering entering a contract with a diverse supplier. 

Supplier diversity certification occurs through a third-party certification agency—usually, an organization that promotes the development of minority-owned and/or small businesses. The process involves documentation, screening, interviews, and possibly on-site visits to confirm that your business is indeed diverse. The application may take several weeks to be approved, but once it is, you are certified and instantly become more attractive to supplier diversity programs. 

[FREE RESOURCE]  The Diverse Supplier's Guide to the Galaxy »

Certifications Available

Several supplier diversity certifications are available from various agencies, including:

A diverse business may qualify for more than one agency, and suppliers holding more than one certification is not unusual.

The Importance of Certification

As already stated, most supplier diversity programs will contract only with certified businesses, so the lack of certification could mean you are missing out on opportunities. Many government projects insist projects devote a certain spend to certified diverse suppliers—these are opportunities small businesses simply cannot afford to miss out on. Moreover, in our recent Supplier Diversity Professionals survey, nearly two-thirds of respondents said they use certification agencies to find diverse suppliers. A common theme throughout the survey was that supplier diversity programs struggled to find diverse businesses. Certification gives you the best opportunity for organizations to discover and hire your company.

The Benefits of Certification

Obviously, the visibility of certification and the ability for supplier diversity programs to find you is the top benefit of certification. However, being certified offers other benefits as well. Networking gets a tremendous boost through certification; other suppliers are more likely to recommend you for a product or service they don’t provide themselves. Certified diverse suppliers often have the opportunity to participate in networking, development, and educational events that other small businesses do not have access to. Also, through certification, diverse businesses can work with other diverse businesses to advocate the cause of diversity and effect change—the more businesses get certified, the greater the chance that the presence of supplier diversity programs will continue to grow, and that the programs themselves will improve. Finally, certification allows you to promote your business better (e.g., the WBENC’s “Women-Owned” logo that certified members are allowed to display). These benefits are just the icing on the cake on why supplier diversity certification is so important. 

If your diverse business is certified, what benefits have you realized?

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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.