GITNUX MARKETDATA REPORT 2024

The Most Surprising Supplier Diversity Statistics And Trends in 2024

Table of Contents

The importance of supplier diversity is becoming increasingly evident in the business world. From increased returns on procurement investments to reduced costs and greater client attraction, organizations are recognizing the value that diverse suppliers can bring to their operations. This blog post will explore 20 statistics related to supplier diversity programs, including spending commitments from major corporations such as Walmart and Intel, economic impacts generated by these initiatives, and more.

The Most Important Statistics
By 2022, 75% of organizations anticipate increasing their spending with diverse suppliers, up from 49% in 2020. This statistic is a clear indication that supplier diversity is becoming increasingly important to organizations. It shows that more and more organizations are recognizing the value of working with diverse suppliers and are willing to invest in them. This is a positive sign for the future of supplier diversity and could lead to more opportunities for minority-owned businesses. Companies with diverse suppliers show a 133% greater return on procurement investments compared to companies without diverse suppliers. This statistic is a powerful indicator of the potential benefits of supplier diversity. It shows that companies that invest in diverse suppliers can reap a significantly higher return on their procurement investments than those that don’t. This is an important point to consider for any business looking to maximize their return on investment and maximize their competitive advantage.

Supplier Diversity Statistics Overview

Large organizations that prioritize supplier diversity have been found to spend 20% less on their buying operations.

This statistic is a powerful indicator of the financial benefits of prioritizing supplier diversity. It shows that companies that make supplier diversity a priority can significantly reduce their spending on buying operations, resulting in a more efficient and cost-effective procurement process. This is an important statistic to consider when evaluating the value of supplier diversity initiatives.

Diverse suppliers account for 8.1% of procurement spending in the United States.

This statistic is a testament to the progress that has been made in the area of supplier diversity. It shows that businesses are increasingly recognizing the value of working with diverse suppliers and are taking steps to ensure that their procurement spending reflects this. This is an important step in creating a more equitable and inclusive economy, as it helps to ensure that all businesses have access to the same opportunities.

94% of organizations with supplier diversity programs report increased client attraction or retention.

This statistic is a powerful testament to the effectiveness of supplier diversity programs. It shows that organizations that invest in supplier diversity are reaping the rewards in terms of increased client attraction and retention. This is an important point to make in a blog post about supplier diversity statistics, as it demonstrates the tangible benefits of such programs.

Supplier diversity programs have contributed to generating over $1 billion in revenue for diverse suppliers annually in the U.S.

This statistic is a testament to the success of supplier diversity programs in the U.S. It shows that these programs are not only beneficial for diverse suppliers, but also for businesses that are looking to increase their revenue. By investing in supplier diversity, businesses can tap into a larger pool of potential suppliers and increase their profits. This statistic is a clear indication that supplier diversity is a worthwhile investment for businesses.

In 2020, Ernst & Young spent over $400 million with diverse suppliers, about 12% of their total procurement spending.

This statistic is a testament to Ernst & Young’s commitment to supplier diversity. It shows that they are actively investing in diverse suppliers, which is a positive step towards creating a more equitable and inclusive business environment. This investment is also beneficial to the economy, as it helps to create jobs and stimulate economic growth in communities that may have been previously overlooked. Ultimately, this statistic is a sign of progress and a reminder that businesses can make a real difference when it comes to promoting diversity and inclusion.

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

This statistic is a powerful indicator of Walmart’s commitment to supplier diversity. By setting a goal of sourcing $10 billion annually from diverse suppliers by 2025, Walmart is demonstrating its dedication to creating a more equitable and inclusive business environment. This commitment to supplier diversity will help to ensure that minority-owned businesses have access to the same opportunities as larger companies, and that their products and services are given the same consideration. In addition, this statistic serves as a reminder that businesses of all sizes can make a difference in the lives of minority-owned businesses and their communities.

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

This statistic is a testament to the importance of supplier diversity programs in the U.S. It shows that a significant portion of businesses recognize the value of having a diverse supplier base and are taking steps to ensure that their supply chain is reflective of the diversity of their customer base. This is an encouraging sign that businesses are taking the initiative to create a more equitable and inclusive environment for their suppliers.

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

This statistic is a testament to the importance of supplier diversity. It shows that Johnson & Johnson is committed to creating an inclusive and equitable business environment by investing in diverse suppliers. This investment not only helps to create a more diverse and equitable business landscape, but it also helps to create jobs and economic opportunities for minority-owned businesses. This statistic is a powerful reminder of the positive impact that supplier diversity can have on businesses and communities.

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

This statistic is a testament to Intel’s commitment to supplier diversity. It shows that the company is actively working to create a more equitable and inclusive business environment by investing in diverse suppliers. This investment not only helps to create a more diverse and equitable business landscape, but it also helps to create jobs and economic opportunities for minority-owned businesses. Intel’s success in reaching its goal of spending $300 million annually with diverse suppliers is a positive sign for the future of supplier diversity.

Microsoft spent $2.9 billion with minority-owned and women-owned suppliers in fiscal year 2020.

This statistic is a testament to Microsoft’s commitment to supplier diversity. It demonstrates that the company is actively investing in minority-owned and women-owned suppliers, which is essential for creating a more equitable and inclusive business environment. By doing so, Microsoft is helping to create more opportunities for minority-owned and women-owned businesses, which can have a positive impact on the economy.

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

This statistic is a powerful statement of Google’s commitment to supplier diversity. It demonstrates their dedication to creating a more equitable and inclusive business environment, and shows that they are willing to invest in the success of diverse suppliers. By investing in these suppliers, Google is helping to create more opportunities for minority-owned businesses and promoting economic growth in underserved communities. This statistic is a clear indication that Google is taking supplier diversity seriously and is committed to making a positive impact.

In 2019, US businesses spent a total of $840 billion with diverse suppliers.

This statistic is a testament to the importance of supplier diversity in the US economy. It shows that businesses are recognizing the value of working with diverse suppliers and are investing in them to the tune of $840 billion. This is a significant amount of money that is being put towards creating a more equitable and inclusive business environment. It is also a sign that businesses are taking supplier diversity seriously and are actively working to create a more diverse and inclusive supply chain.

Companies that invest in supplier diversity enjoy up to a 20% saving in procurement costs.

This statistic is a powerful testament to the financial benefits of investing in supplier diversity. It shows that companies can not only benefit from the social and ethical advantages of diversifying their supplier base, but also from the tangible cost savings that come with it. This is an important point to consider when discussing the importance of supplier diversity.

Conclusion

The evidence is clear: supplier diversity programs are beneficial for organizations of all sizes. From increased returns on procurement investments to reduced costs and greater client attraction or retention, the advantages of investing in diverse suppliers are numerous. Companies such as Walmart, Intel, Microsoft and PepsiCo have already committed to spending billions with diverse suppliers by 2025 – a testament to their commitment towards creating an inclusive business environment that benefits everyone involved. With over $840 billion spent with diverse suppliers in 2019 alone, it’s evident that these initiatives can make a real difference when it comes to economic growth and job creation across the United States.

References

0. – https://www.jnj.com

1. – https://www.intel.com

2. – https://www.procurementleaders.com

3. – https://www.mbda.gov

4. – https://www.blog.google

5. – https://www.businesswire.com

6. – https://www.hbr.org

7. – https://www.aelogica.com

8. – https://www.gartner.com

9. – https://www.ey.com

10. – https://www..deloitte.com

11. – https://www.ceoworld.biz

12. – https://www.microsoft.com

13. – https://www.fortune.com

FAQs

What is the importance of supplier diversity in a company's supply chain?

Supplier diversity is important because it fosters innovation, expands market access, promotes positive social impact, lowers operating costs through increased competition, and enhances a company's brand and reputation.

How does supplier diversity benefit businesses and organizations?

Supplier diversity benefits businesses by providing a wider range of unique products and services, access to innovative ideas and problem-solving, increased supply chain resilience, enhanced attractiveness to diverse customer bases, and opportunities to be recognized for social responsibility and sustainable business practices.

What are some common types of diverse suppliers?

Common types of diverse suppliers include businesses owned by minorities, women, LGBTQ+ individuals, veterans, people with disabilities, and small businesses in economically disadvantaged or underrepresented communities.

How can companies ensure they are incorporating supplier diversity in their procurement processes?

Companies can incorporate supplier diversity by establishing a clear supplier diversity policy, setting quantifiable goals, advocating within their organization for diverse supplier sourcing, collaborating with diverse supplier support organizations, ensuring that procurement teams are trained on the importance of supplier diversity, and monitoring and reporting on their progress toward supplier diversity goals.

What are some barriers that diverse suppliers might face in gaining access to business opportunities?

Barriers to entry for diverse suppliers may include a lack of awareness about procurement opportunities, limited financial resources or access to capital, difficulty meeting the required scale of production, bias or discrimination in selection processes, and limited networking opportunities with decision-makers in larger organizations.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

Table of Contents