With $310 billion in buying power, California’s insurance industry is the largest in the nation and the fourth largest in the world. In 2011, the State of California established the Insurance Diversity Initiative (IDI) focusing on the collection of diversity data amongst the state’s top insurance companies. From 2012 to 2016 alone, IDI insurers reported a 70 percent increase in spending with California diverse businesses.

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.