Supplier Diversity Development Program Defined: A supplier diversity program is a proactive business program which encourages the use of minority-owned, women owned, veteran owned, LGBT-owned, service-disabled veteran owned, historically underutilized business, and Small Business Administration (SBA)-defined small business concerns as suppliers.
Supplier diversity programs recognize that sourcing products and services from previously under-used suppliers helps to sustain and progressively transform a company’s supply chain, thus quantitatively reflecting the demographics of the community in which it operates by recording transactions with diverse suppliers.
In general, supplier diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. It emphasizes the creation of a diverse supply chain that works to secure the inclusion of diverse groups in the procurement plans for government, not-for-profits, and private industry.
The purpose of the Supplier Diversity Program (SDP), formerly known as the Small and Disadvantaged Business Utilization (SDBU) Program, is to provide advocacy for and direction to small businesses and historically underutilized small businesses (HUSBs). The SDP seeks to ensure that these firms receive equal opportunity and appropriate consideration in the procurement of goods and services.