CHICAGO — February 7, 2023: Supplier.io, the leading data analytics and SaaS provider of supplier diversity management solutions, today released the 2023 Supplier Diversity Benchmarking Report—its first-annual analysis of over $1.4 trillion in actual supplier spend across 466 companies and more than 15 industries. The report identifies clear benchmarks on diverse supplier spend, industry specific details, and diversity group insights to help companies improve their supplier diversity programs using unique industry intelligence.
“Accurate and detailed benchmarking is critical to help us all get better and grow our supplier diversity programs. Detailed analysis and actionable insights identify a number of ways organizations can improve, building on the successes of peers across industries,” said Aylin Basom, Supplier.io CEO. “We’re thrilled to share our first annual Supplier Diversity Benchmarking Report, which analyzes actual spend and empowers companies to tap into new opportunities to make meaningful improvements in supplier diversity.”
The report found that companies on average spend 3.6% with certified diverse suppliers—with a best-in-class average of 9.1%—and 7.5% with small and diverse suppliers, which highlights the importance of looking at consistent data. Diverse spending is highly concentrated, which may be a risk: 80% of companies spend less than 5% with diverse suppliers, and the top 10 diverse suppliers receive 17% of all diverse spend.
Specific industry results vary from half the overall industry average to more than double. The highest average spending is seen in energy (9%) and high tech (8%) and the lowest in retail (2.1%) and food and beverage (1.6%). Top-performing companies are seen to more than double their industry average, with top performers in energy achieving 27.8% spend and in high tech achieving 19.2%.
Select Supplier.io customers and partners shared the following about how the 2023 Supplier Diversity Benchmarking Report helps their organization:
“These new supplier diversity benchmarks from Supplier.io offer companies a wealth of information to guide them in making more meaningful strides in supplier diversity,” said Christopher Sawchuk, principal and global procurement advisory practice leader, The Hackett Group. “The granularity of their industry level data enhances the strategic guidance available through other research reports (e.g., The Hackett Group) to provide a full picture of the requirements necessary for building a successful supplier diversity program.”
“Supplier.io’s 2023 benchmarking report provides much needed industry metrics and cross-category development opportunities for us to explore,” said Melinda So, procurement COE manager, supplier diversity and sustainability, Molson Coors.
“We’ve been using benchmarking data for years to improve our program and results at the industry and commodity level. We are also looking for ways to better support specific groups that align with our mission, like veteran and military spouse owned businesses.” said Wayne Shanks, supplier diversity director, USAA.
Several commodity categories offer leaders a clear opportunity to grow their diverse supplier spend in areas that others are missing. Companies in construction (9%), admin and support services (8.6%), and educational services (8%) achieve the highest spend on specific products and services with diverse suppliers, whereas companies in arts, entertainment and recreation, healthcare, and manufacturing present the greatest opportunity to invest more in commodity areas.
Access the full 2023 Supplier Diversity Benchmarking Report here for more information.
Supplier.io is the leading data, analytics, and SaaS provider of solutions that enable companies to manage, optimize, and scale their supplier diversity programs. Working as a trusted advisor to the supplier diversity community, Supplier.io’s mission is to support every program by providing innovative and superior end-to-end supplier diversity solutions. Equipped with unparalleled data intelligence, superior technology, and expert guidance, Supplier.io’s customers can establish and advance their supplier diversity initiatives effectively and strategically. For more information, visit www.supplier.io.