Supplier Diversity Statistics 2024 – 35 Key Figures

It is no secret that when it comes to the corporate world there are age-old dynamics at play that reflect the discrimination of the real world. Due to this certain groups of people are at a disadvantage and so are their goods, services, and businesses.

However, the corporate world has come to acknowledge this and has made efforts to be inclusive, especially when it comes to one of the most integral parts of a business: the supply chain.

What is Supplier Diversity?

When it comes to supply chain management the supplier is an integral part of the whole process. Supplier diversity is a business strategy that cultivates a more diverse and inclusive supplier base in the procurement process.

Supplier diversity is an effort to help individuals or groups historically underrepresented or underserved in the economy. This helps small businesses grow and gives minorities a chance at better opportunities in the corporate world.

The expansion of business sourcing in this direction offers many benefits commercially and socially, not just for the suppliers themselves but for the broader business ecosystem and society.

35 Supplier Diversity Key Figures of 2024

As supplier diversity is gaining traction and inclusivity has never been as important as it is now, here are important statistics about Supplier Diversity that you should know.

1. Hootology reports that individuals were 49%  more likely to use Coca-Cola products because of their diversity efforts

In a 2019 study for Coca-Cola, Hootology discovered that individuals were 49% more likely to use Coca-Cola products because of their diversity efforts. 45% of those surveyed were more likely to perceive Coca-Cola as a brand that values diversity while 25% were more likely to think of the brand favorably.

According to these statistics, Hootology estimated that 670,000 consumers would start using the company’s products more frequently.

2. 85% of U.S. companies have dedicated supplier diversity programs

Oliver Wyman’s studies show that 85% of U.S. companies have dedicated supplier diversity programs. Many organizations appear to be on the progress train when it comes to supplier diversity, however, of the 85% only 59% reported supplier diversity spend.

3. 68% of organizations globally have increased internal pressure for supplier diversity since 2021

According to JAGGAER, 68% of organizations globally have increased internal pressure for supplier diversity since 2021. This is due mostly to the Black Lives Matter movement and stronger calls for inclusion and equitable practices.

4. 70% of respondents claimed supplier diversity was a high or medium priority for their organization

JAGGAER studies from 2021 show that 70% of respondents claimed supplier diversity was a high or medium priority for their organization. However, many of these organizations are still in the early stages of inclusion and 63% either haven’t started or are just getting started.

Only over 25% of respondents actively source from vendors from historically disadvantaged communities.

5. Companies with diverse suppliers show a 133% greater return on procurement investments

According to Gitnux, compared to companies that don’t have diverse suppliers, companies that do show a 133% greater return on procurement investments.

This indicates the potential benefits of supplier diversity. Being more inclusive with their suppliers also allows an organization to reach a wider audience.

6. Organizations that prioritize supplier diversity spend 20% less on their buying operations

There are financial benefits to prioritizing supplier diversity and it shows in the numbers. According to Gitnux, organizations prioritizing supplier diversity spend 20% less on their buying operations. The spending on buying operations is significantly reduced due to supplier diversity which leads to an efficient and cost-effective procurement process.

7. 8.1% of procurement spending in the U.S. is for diverse suppliers

Gitnux reports that diverse suppliers make up 8.1% of procurement spending in the U.S. This number is still small but it is still enough of a significant percentage to know that progress is on the way.

Organizations are starting to understand the benefits of supplier diversity and are starting to reflect this on their procurement spending. This is an important step in ensuring an inclusive economy that presents equal access to all.

8. Increased client attraction or retention in 94% of organizations with supplier diversity programs

According to Gitnux, there is an increased client attraction or retention in 94% of organizations with supplier diversity programs. This shows organizations that there are tangible benefits to supplier diversity programs in their consumer base and brand.

9. In the U.S. alone over $1 billion in revenue was contributed due to supplier diversity programs

Investments in supplier diversity tap into a wider market of suppliers and consumers which gives a significant increase to their profits. In the U.S. alone over $1 billion in revenue was contributed due to supplier diversity programs, as reported by Gitnux.

10. Over 40% of U.S. organizations have adopted supplier diversity programs

Businesses want their supply chain to reflect the diversity of their consumer base which is why there are increasingly more efforts for supplier diversity programs. According to Gitnux, over 40% of U.S. organizations have adopted supplier diversity programs.

11. $840 billion was spent on diverse suppliers

Gitnux reports that in 2019, businesses in the U.S. spent $840 billion on diverse suppliers. This investment is put towards making a more inclusive and equitable business environment which shows that supplier diversity is taken as seriously as it should be.

12. The biggest issue with supplier diversity data is too much work on data gathering says 34% of respondents

As reported by Supplier io, when asked what challenges were present in supplier diversity the biggest issue cited by 34% of the companies surveyed is the amount of work needed to get the data done. Staffing and budgets were also big problems as economic conditions were not in favor of those.

13. On average companies spend 3.6% with certified diverse suppliers

According to Cision data companies spend 3.6% with certified diverse suppliers on average. Diverse spending is highly concentrated which makes it a risk because 80% of companies spend less than 5% with diverse suppliers and 17% of diverse spend goes to the top 10 diverse suppliers.

14. 72% of respondents have clearly defined supplier diversity goals

According to Supply Management, 7 in 10 or 72% of respondents have clearly defined supplier diversity goals which is 68% more than last year. Furthermore, 48% include supplier diversity metrics in their management performance objectives.

15. Construction companies have the highest spend on specific products and services

According to Cision, companies in arts, entertainment and recreation, healthcare, and manufacturing present the greatest opportunity to invest more in commodity areas.

However, companies in construction (9%), admin and support services (8.6%), and educational services (8%) achieve the highest spend on specific products and services with diverse suppliers.

16. 61% of senior business leaders are engaged with their companies’ supplier diversity initiatives

Data from Supplier io, report that 61% of senior business leaders are engaged with their companies’ supplier diversity initiatives. These same leaders were also reported by the surveyed respondents to be key members of their supplier diversity council.

17. Sourcing managers and directors account for 70% of management support

For the past year only about half of all buyers were trained on a supplier diversity program or goals. This is why sourcing managers and directors are important as they account for 70% of management support concerning supplier diversity, according to Supplier io.

18. 55% of respondents indicated that supplier diversity contributes to their overall ESG strategy

Supplier diversity initiatives have been proven to enhance Environmental, Social, and Governance (ESG) performance. According to Supply Chain Online, 55% of respondents confirm that supplier diversity plays a significant role in shaping their comprehensive ESG strategy.

19. 67% of respondents report using third-party data to monitor supplier diversity status

Supplier io reports that this year, 67% of respondents used third-party data as their primary method for monitoring supplier diversity, elevating it to number 1 from the 3rd rank.

When it comes to data quality, 68% of organizations utilizing third-party data reported improvements this year, while only 34% of those not using third-party data saw similar enhancements.

20. 13.2% of respondents in 2022 have global supplier diversity programs, compared to 8% in the previous year

Global supplier diversity programs have seen significant growth, with 13.2% of respondents in 2022 having such programs, compared to 8% in the previous year as stated in the report by Supplior.io. 

This rise demonstrates a growing corporate commitment to supplier diversity, as more companies prioritize the inclusion of diverse suppliers in their procurement processes.

21. 7.5% of spending is allocated to small and diverse suppliers across all industries

According to the same report made by Supplier.io, spending for both small and diverse suppliers averaged 7.5% across all industries. This figure highlights the importance of examining reliable data when it comes to supplier diversity, as it provides a clear picture of the percentage of spending allocated to diverse suppliers.

22. Most companies spend less than 5% of their budget on suppliers from diverse backgrounds, and the top 10 diverse suppliers get 17% of that spending

In 2023, the Supplier Diversity Benchmarking Report revealed that 80% of companies spend less than 5% with diverse suppliers, and the top 10 diverse suppliers receive 17% of all diverse spend.

This data highlights the highly concentrated nature of diverse spending and the need for improved distribution across diverse suppliers.

23. 34% of the 2022 respondents reported that their supplier diversity programs have been in place for over ten years

In 2022 Supplier.io’s 5th State of Supplier Diversity Report, 34% of the respondents reported that their supplier diversity programs have been in place for over ten years, reflecting a significant and lasting corporate commitment to supplier diversity. 

This increase demonstrates a continued and growing emphasis on fostering diverse supplier relationships and integrating supplier diversity into long-term business strategies.

24. 56% of companies report that the diversity data they have access to has improved compared to last year

According to the 2023 State of Supplier Diversity Report, 56% of companies report that the diversity data they have access to has improved compared to last year. 

This data highlights the growing importance of supplier diversity and the need for reliable and consistent data to track progress and identify areas for improvement.

25. 53% of companies are investing in supplier diversity to enhance their brand image 

In 2023, 53% of companies are investing in supplier diversity to enhance their brand image, reflecting a strategic focus on leveraging supplier diversity initiatives to strengthen their corporate reputation and appeal, according to Supplier.io. 

This emphasis on brand image as a key driver for supplier diversity underscores the evolving role of supplier diversity programs in contributing to broader business objectives and corporate values.

26. 48% of companies have incorporated supplier diversity metrics into their management key performance indicators (KPIs)

Supplier diversity is becoming increasingly important in business, with almost half (48%) of companies incorporating supplier diversity metrics into their management key performance indicators (KPIs).

The most common supplier diversity metric is the percentage of spend with diverse suppliers, which provides insights into the organization’s commitment to supplier diversity. Other important metrics include the number of diverse suppliers used and the number of employees from underrepresented groups hired. Establishing a clearly defined and communicated supplier diversity program with measurable targets is crucial for effectively tracking and improving supplier diversity initiatives. 

The 2023 Supplier Diversity Benchmarking Report provides industry-specific insights and benchmarks on diverse supplier spend, helping companies improve their supplier diversity programs.

27. 97% of companies report consistent or increased executive support

Diversity and inclusion in the workplace are crucial for companies to succeed. 

Based on Supply Chain Online, 97% of companies report consistent or increased executive support, indicating a growing recognition of the importance of diversity and inclusion in the workplace. Companies with diverse executive leadership and board teams earn more in profits, with companies in the top 25 percent in gender diversity likely to out-earn companies in the bottom. 

Gender diversity among executive teams has proven to be particularly beneficial, as research by McKinsey found that companies in the top quartile for executive gender diversity were 25% more likely to have above-average profitability

Examples of Supplier Diversity from Corporations

It’s easier to feel that supplier diversity is taken seriously when aside from generalized numbers there are actual examples of real-life companies doing the work and making a difference. Here are some corporations that show that they are pioneering a progressive world through investment in supplier diversity.

28. Google committed to spending over $1 billion annually with diverse suppliers by 2025

Google’s commitment to supplier diversity can be seen through its goal of spending $1 billion annually with diverse suppliers by 2025. A company as big as Google inciting such an action is a good way to show other companies how it should be done.

29. Microsoft need to include $2.9 billion with minority-owned and women-owned suppliers in fiscal year 2020

In the year 2020 Microsoft $2.9 billion with minority-owned and women-owned suppliers. As women have always been minorities, an investment like that from Microsoft shows the modern world that equality has never been as prominent as it is now.

30. Intel has exceeded its goal of spending $300 million annually with diverse suppliers.

Intel is a pioneering name in supplier diversity as it has had an annual $300 million goal set for investing in diverse suppliers but has surpassed this already big budget to give equal opportunity to all, especially those who have been undervalued by society for so long.

31. In 2020, Johnson & Johnson spent $2.3 billion with diverse suppliers

The year 2020 saw the beginning of a fruitful relationship between corporations and supplier diversity. Yet another company that has invested big in supplier diversity is Johnson & Johnson which spent $2.3 billion with diverse suppliers.

32. Ernst & Young spent over $400 million with diverse suppliers

Ernst & Young is not one to be left behind in the investment of supplier diversity as they spend $400 million with diverse suppliers, a number that equals 12% of their procurement spending. Supplier diversity is indeed important for procurement and this isn’t lost on Ernst & Young.

33. Walmart committed to sourcing $10 billion annually from diverse suppliers by 2025

Walmart is one of the biggest corporations in the U.S. Some might even say that it’s a household name. With various branches across the states, Walmart has committed itself to sourcing $10 billion annually from diverse suppliers by 2025.

34. Coca-Cola’s spending approximately $800 million with diverse suppliers in the U.S. in 2021

The Coca-Cola system’s expenditure of around $800 million with diverse suppliers in the U.S. in 2021 reflects its dedication to fostering a diverse supplier base. This spending is a significant step towards achieving its goal of spending $1 billion annually with diverse suppliers, which include businesses owned by minorities, women, disabled veterans, and individuals who identify as LGBTQ+

35. UPS promoting economic inclusion with a $2.6 billion annual budget since 1992

The United Parcel Service (UPS) has been a frontrunner in supplier diversity, launching its Supplier Diversity Program in 1992. With an annual budget of US$2.6 billion, the program has significantly contributed to the company’s mission of promoting economic inclusion and supporting of women-owned and diverse-owned businesses. 

Why is Supplier Diversity Important?

Supplier diversity is important because it can lead to more sustainable growth in the economy. Marginalized and undervalued communities can be given opportunities that they would not have had before supplier diversity initiatives.

Supplier Diversity can lead to job creation and increased wealth distribution. Aside from this, it can expand an organization’s global reach and open up new opportunities for themselves by creating better opportunities for others.

Conclusion

Supplier diversity is beneficial to all organizations no matter how big or small. Benefits include increased returns on procurement investments, cost reduction, greater client attraction or retention, and many more.

2025 is already set to see big-name companies such as Walmart, Intel, Microsoft, and PepsiCo to name a few, investing billions on supplier diversity. These companies understand the global benefits that supplier diversity has.

Supplier Diversity makes a real difference when it comes to job creation and overall economic growth.