Study Finds Supplier Diversity Programs Generate 133% Increased ROI

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Does your company have a supplier diversity program in place? If not, you are missing out on phenomenal benefits including increased revenue, better brand image, and decreased expenses.

How is this possible? Let’s dive into what supplier diversity is all about.

What is Supplier Diversity?

Supplier diversity refers to a business program that is dedicated to partnering with businesses/suppliers that fall into certain categories; categories that promote diversity and economic growth within their communities. Some of these categories include women-owned, veteran-owned, minority-owned, LGBT-owned, historically underutilized businesses, and SBA-defined small business vendors.

Here are some related certifications that qualify a business as a diverse supplier:

What are the Benefits of Partnering with Diverse Suppliers?

Increased ROI

A study by the Hackett Group showed that long-term supplier diversity programs generated 133% more ROI than businesses that continue to use only the same suppliers they have always used. It showed a $3.6 million increase to an organization’s bottom line for every $1 million spent on procurement and operating costs.

Businesses with diversity supplier programs not only earn more, they also benefit from decreased operating costs. The same study concluded that procurement organizations who partner with a diverse supplier base experienced lower operating costs and saw a 20% decrease in buying operations.

Expanded Network

Naturally, gathering a pool of diverse suppliers will open the doors to new opportunities and resources. As your relationships develop with diverse suppliers, you will have access to their business contacts – expanding your possibilities even further.

Whether it is to gain more diverse suppliers, gain new business, or obtain new perspectives – networking through a supplier diversity program will promote unique opportunities for your organization.

Positive Impact in Your Community

Hiring diverse suppliers improves the economy in your community, promotes job creation, and clearly shows the community (and the world) that you are committed to making a positive impact.

Creating positive relationships within the community will ultimately benefit your business. Locals will be more likely to use or recommend your products or services to others, due to the positive impact – and attitude – your business creates.

Tax Incentives

Not only will a supplier diversity program make a positive impact in your community, it also makes you eligible for federal and possibly state tax incentives.

The federal government allows tax breaks for companies who partner with minority and women-owned businesses. They also provide a tax incentive that reduces tax liabilities for firms that use diverse suppliers for labor or services for a project funded by federal or state grants/loans.

Tax breaks and incentives benefit your bottom line, giving you more capital to improve your business.

Good All Around

As we’ve seen, supplier diversity programs improve many aspects of a business. They improve local economies, increase ROI, benefit the bottom line, and so much more!

Click here to learn more about implementing supplier diversity programs in your company.


Teneo Linguistics Company is HUB, WBENC, and SBE certified. If you are looking for a diverse supplier for your company’s professional language service needs (translation, interpreting, transcription, etc.), contact us!

4700 Bryant Irvin Ct.
Suite 301
Fort Worth, TX 76107



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