---
title: Supplier diversity: Definition and How It Works | Aavenir
url: https://aavenir.com/glossary/what-is-supplier-diversity/
description: Supplier diversity is a program that includes suppliers owned by minority, women, veteran, small and other underrepresented business owners in purchasing.
updated: 2026-11-07
---

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# What is supplier diversity?

Supplier diversity is a business program that intentionally includes suppliers owned by underrepresented groups, such as minority, women, veteran and small business owners, in purchasing.

## How a supplier diversity program works

The company sets a goal to buy from diverse suppliers, then builds the process to make that happen. Suppliers are often verified through third party certification bodies, and the definitions of a diverse business vary by country and by program.

- **Identify.**diverse suppliers through certification directories and networks.

- **Include.**them in sourcing events and make bidding accessible.

- **Develop.**them through mentoring, fair terms and prompt payment.

- **Track.**diverse spend and report on progress.

## Why it matters

A broader supplier base brings more competition, new ideas and less dependence on a few large suppliers. Many public sector and large corporate customers also ask their own suppliers to report on diverse spend, so the program can affect revenue as well as purchasing.

## How Aavenir handles it

[Onboardingflow](https://aavenir.com/solutions/vendor-onboarding-software/) captures certifications and ownership details at registration and checks the documents, so diversity status is verified and current. [RFPflow](https://aavenir.com/solutions/rfp-management-software/) lets you invite certified suppliers to events, and [Aavenir Atlas](https://aavenir.com/solutions/ai-contract-intelligence/) can answer questions about spend by supplier group.

## Keep reading

[Supplier sourcing Supplier sourcing is identifying, evaluating and selecting suppliers that can meet a company's needs on cost, quality... Read more](https://aavenir.com/glossary/supplier-sourcing/)[Supply chain sustainability Supply chain sustainability is how a company manages the environmental, social and ethical impact of its suppliers, covering... Read more](https://aavenir.com/glossary/supply-chain-sustainability/)[Supplier information management Supplier information management is a system and process for capturing, storing, updating and analyzing all your supplier... Read more](https://aavenir.com/glossary/supplier-information-management/)

Frequently asked questions (FAQ)

## Common questions

###

### What counts as a diverse supplier?

Definitions vary, but programs commonly include businesses owned by minorities, women, veterans, people with disabilities and LGBTQ owners, plus small and disadvantaged businesses. Most programs rely on third party certification. [Read about vendor onboarding](https://aavenir.com/glossary/vendor-onboarding/).

###

### How do you track supplier diversity spend?

Record certification status on each supplier record, keep it current with expiry dates, and report spend by supplier group from invoices or payments. Accurate supplier data matters more than the reporting tool. [Read about supplier information management](https://aavenir.com/glossary/supplier-information-management/).

###

### Does supplier diversity conflict with getting the best price?

Not when it is done well. Diverse suppliers compete on the same criteria as others, and widening the pool usually increases competition. The program removes barriers to bidding rather than lowering standards. [See RFPflow](https://aavenir.com/solutions/rfp-management-software/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

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