Spend Reporting
Supplier Diversity Tracking, Monitoring, and Reporting System
January 30, 2021

How Does a Supplier Diversity Program Work?

supplier diversity program

A Supplier Diversity Program is a dynamic business program intended to support and encourage the use of the following types of businesses: minority-owned business, veteran owned business, women-owned business, LGBT-owned business, businesses that are historically underutilized or recognized, and small business suppliers defined by the Small Business Association.

All industries in the North America, starting in the state’s seven largest urban areas, will be encouraged to participate in the following manner:

  • Agree to participate in fostering greater use of minority and women owned businesses as tier one or tier two suppliers
  • Agree to participate in ongoing outreach to minority and women owned businesses
  • Participate in the system of reporting, auditing, and tracking which includes validation of their reporting dollars in the use of minority and women owned businesses
  • Where appropriate participate with other similar industries or sectors in order to take advantage in natural synergy
  • Agree in efforts to increase business opportunities for minority and women owned business by using a system that actual validates their expenditures

All participating companies will participate in the following process:

  • All companies register into a common auditing, reporting, tracking and validation system
  • Purchasing companies report all purchases from minority and women owned companies
  • All minorities and women should be certified by one of the certifier bodies
  • Agree to permit distribution of monthly, quarterly, and annually reports to various relevant and interested parties

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