Supplier diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. In other words, supplier diversity refers to a supply chain that incorporates businesses owned by diverse individuals or groups.
Though supplier diversity is a well-known industry best practice that speaks to the benefits of small and diverse businesses in a company’s supply chain, it is not the only strategy that does this. B corporations, social procurement, and economic development plans also highlight the need for including small and diverse businesses in the procurement process.
Recently, a new term has gained momentum in the supplier development industry. Over the past few years, many organizations have adopted “anchor strategies” to invest in their local economy.