
The Importance of Supplier Diversity in MSP Programs
In an increasingly interconnected and socially conscious business world, supplier diversity has emerged as a strategic priority for companies looking to build resilient and innovative supply chains. Companies are making notable investments in supplier diversity, with the average spending on certified diverse suppliers reaching 3.6% of total procurement spend, and best-in-class firms spending up to 9.1% on diverse suppliers. A well-executed supplier diversity program brings transformative benefits—unlocking fresh perspectives, fostering community connections, and driving inclusive economic growth. When integrated into Managed Service Provider (MSP) programs, supplier diversity efforts can reach new heights, helping organizations expand their access to underrepresented talent pools and achieve meaningful impact. Here Broadleaf explores how supplier diversity within MSP programs drives business value, fosters economic empowerment, and enhances the agility and innovation necessary to stay competitive.
Related Blog – Supplier Diversity Programs: How to Get Started
Expanding Access to Underrepresented Talent Pools through Supplier Diversity in MSP Programs
Supplier diversity programs are essential in today’s business landscape. At its core, supplier diversity is about building a supply chain that includes businesses owned by individuals from historically underrepresented groups, such as minority-, women-, LGBTQ+-, veteran-, and disabled-owned businesses. A supplier is classified as diverse when at least 51% of the company is owned and operated by individuals from these groups. But it goes far beyond meeting compliance requirements; supplier diversity is a transformative business approach that unlocks significant new value, from fostering innovation to building stronger community connections and enhancing business resilience. Many companies have reported that partnerships with diverse suppliers yield higher innovation returns—up to 133% more procurement value—due to the unique perspectives these suppliers bring to problem-solving and product development.
Integrating supplier diversity into a Managed Service Provider (MSP) program can amplify these benefits, ensuring agility and accountability while diversifying an organization’s supply chain. By partnering with MSPs that prioritize supplier diversity, companies can expand their access to previously underrepresented talent pools. For instance, veteran-owned staffing firms have a deep understanding of the unique challenges veterans face when transitioning to civilian careers, enabling them to recruit veterans more effectively. By working with such suppliers, MSPs allow companies to tap into underutilized talent pools and source candidates inclusively.
Driving Economic Empowerment for Underserved Communities
Supplier diversity isn’t just about fulfilling corporate responsibility; it’s a powerful investment in economic empowerment and long-term prosperity for communities that have been historically excluded from mainstream economic opportunities. Rather than viewing supplier diversity as a compliance measure, consider it a strategic approach to drive inclusive economic development while strengthening your brand’s social impact. Partnering with diverse suppliers enables organizations to contribute to a more equitable economy, helping to level the playing field and open up new avenues for growth.
Enhancing Business Outcomes through Agility and Innovation
Working with diverse suppliers does more than meet diversity targets—it fosters agility and drives innovation. By bringing in fresh perspectives, diverse suppliers can offer unique approaches to solve challenges, adapt quickly to changing market demands, and bring forward creative solutions. In a fast-paced business environment, this diversity of thought is a crucial asset. MSP programs that integrate diverse suppliers into their operations can gain a competitive edge by harnessing these new ways of thinking, ensuring they stay relevant and competitive in the market.
The Role of MSPs in Enhancing Supplier Diversity
A successful MSP partner doesn’t just meet supplier diversity goals; it becomes a catalyst for change. Experienced MSPs help clients embed supplier diversity into their broader Diversity, Equity, and Inclusion (DEI) strategies for long-term impact. A strong MSP partner will also have the expertise to source diverse suppliers who deliver high-quality services at competitive prices, adding tangible value to the business. Furthermore, MSPs can offer robust reporting that tracks diversity spending, supplier performance, and the program’s overall business impact. This transparency is essential for ensuring that supplier diversity programs go beyond theory, providing measurable outcomes that demonstrate the program’s effectiveness.
Incorporating supplier diversity into your MSP program is more than a box to check; it’s a strategic choice that benefits businesses, communities, and the economy. By building connections with underrepresented suppliers, organizations can unlock new opportunities, foster innovation, and contribute to a more inclusive and equitable marketplace.
This blog was written by Broadleaf’s Vice President Client Delivery Joseph O’Shea.