This blog was originally published on 6/1/2013 and updated on 12/30/2019.

When considering strategies to increase engagement and spend with diverse suppliers, supplier diversity programs must be willing to be moved to tiers. (Sorry, we couldn’t resist the obvious pun!) Tier 1 and Tier 2 are important terms to know when describing suppliers, especially diverse suppliers, and the supplier diversity Tier goals that companies set and strive to meet. Tier 2 suppliers are of special note because these businesses offer the potential to partner with more diverse suppliers and grow your diversity initiatives.

Supplier Diversity: Evolution for impact

For the past decade, ConAgra Foods has been making strides in developing a Supplier Diversity program to better serve its customers, consumers and communities. They’re looking for the right mix of suppliers to develop a recipe for success, as indicated on their website.

MillerCoors, founded in 1855, develops its brands through brewing quality beverages, responsible marketing and consideration of the environment and community. They market to a wide range of consumers, and aspire for their supply base to actively mirror their customer base. The MillerCoors Supplier Diversity program dates back to 1975 and in 2004 CVM Solutions and MillerCoors began working together to advance their supplier diversity program and incorporate Tier 2 diverse spend.

A consulting and staffing program designed to give supplier diversity professionals the expertise they need to either develop a new supplier diversity program or advance their existing program.

World class firms consider supplier diversity to be a strategic initiative, but often the challenge is in identifying and evaluating qualified small diverse firms to compete for your business. There are literally millions of small and diverse firms and at times it can seem that all of them are knocking on your door and asking for your consideration. It simply isn’t practical to have a conversation with every potential supplier and you need tools which can make your limited time productive.