Supplier Diversity Promoting Racially Equitable Purchasing

 A diverse supplier is a business that is at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group. Common classifications are small-business enterprises (SBEs), minority-owned enterprises (MBEs), and woman-owned enterprises (WBEs). Over time, the definition of diversity has expanded to include businesses owned by other underrepresented groups such as LGBTQ+, veterans and proprietors with disabilities.

 Why is Supplier Diversity Important?

• Establishes an expectation and an invitation to minority-owned businesses that their business    is welcomed 

• Maintains high moral and ethical standards of the company

• Increases market penetration in diverse markets and segments

• Drives social and economic benefits in targeted communities

• Improves corporate reputation and involves the organization in the communities where business is conducted

• Generates economic opportunity for disadvantaged communities

• Creates a selling point when hiring - 52% of applicants said they want to work for a company that has a supplier diversity program (survey conducted for UPS by Hootology)

• Widens the pool of potential suppliers & promotes competition in the supply base, which can improve product quality and drive down costs

• Makes supply chains more resilient and agile. 

Discover REDI Solutions to promote Racially Equitable Purchasing programs.