Heightened Focus on Responsible Sourcing Fuels Business Growth and Innovation in 2024

Supplier.io’s State of Supplier Diversity Report Reveals 48% of Organizations Leverage Responsible Sourcing Programs to Win New Business

Heightened Focus on Responsible Sourcing Fuels Business Growth and Innovation in 2024

Corporate Ink for Supplier.io
supplier.io@corporateink.com

The 2024 State of Supplier Diversity report released today by Supplier.io reveals responsible sourcing as a cornerstone of business strategy, fueling core operations and accelerating global expansion. The research found executive involvement has increased over last year as more business leaders see the impact of diverse and sustainable suppliers on corporate culture (76%), supply chain competitiveness (65%), and compliance with customer or government requirements (80%).

“Responsible sourcing is no longer niche – it drives innovation, strengthens global supply chains, and shapes the future of corporate sustainability,” said Aylin Basom, CEO of Supplier.io. “Our research underscores that companies are not just investing in these programs, they’re using them as strategic levers to quantify impact, secure executive buy-in, and unlock new growth opportunities. This shift is about building businesses that are not only competitive and sustainable but also deeply committed to creating long-term value for all stakeholders.”

As businesses recognize the strategic importance of responsible sourcing, executives are doubling down on precise, data-driven reporting to quantify program value. This shift is reflected in the nearly 270% rise in companies conducting economic impact analyses over the last year. C-suite involvement has also surged, with a 166% increase in direct reporting to CEOs and Boards over the last three years, underscoring the growing influence of responsible sourcing on high-level decision-making and long-term business strategy.

Additional key findings from the 2024 State of Supplier Diversity report include:

Responsible sourcing and broader business initiatives are increasingly connected. Two-thirds of respondents reported active engagement with individual business units, highlighting the growing integration of supplier diversity programs across the enterprise. Additionally, partnerships with environmental, social, and governance (ESG) initiatives rose 24%, underscoring the strong synergy between sustainable and diverse spend.
Corporate culture, supply chain competitiveness, and brand image continue a 7-year streak as top program drivers. However, new motivations are gaining traction – 48% of respondents now leverage supplier diversity programs to win new business. Global expansion is also gaining momentum, with 27% of companies planning to enter international markets within the next one to two years, a 350% increase from 2021.
Data drives program excellence and strategic outcomes: Over 92% of organizations monitor their spend with small and diverse suppliers, with 60% leveraging third-party data—an increase from 47% in 2021. As a result of this intelligence, business leaders can measure the success of their supplier diversity programs through additional factors including cost savings (28%), economic impact on communities (37%), and innovations (18%).
Support for responsible sourcing remains strong despite external headwinds: 67% of leaders report that economic conditions have not affected their support for responsible sourcing programs, an increase from 57% who said the same last year.

Now in its seventh year, the 2024 State of Supplier Diversity report compiles insights from over 350 supply chain professionals, more than half of whom work at organizations with revenues of $1 billion or higher. To get access to the full data, download the report here.

About Supplier.IO

Supplier.io is the market-leading SaaS provider of supplier diversity and ESG data and management solutions. The platform enables organizations to track and manage responsible sourcing, providing valuable data and insights that drive business growth, and the ability to measure social, economic, and environmental impact. Equipped with unparalleled data intelligence, superior technology, and expert guidance, Supplier.io’s customers can establish and advance their supplier diversity and ESG initiatives effectively and strategically. For more information, visit www.supplier.io.