Responsible Sourcing Programs Remain Strong with Heightened Focus on Small Businesses for Supply Chain Resilience

The 2025 State of Supplier Diversity report released today by Supplier.io reveals that supplier diversity programs are strong and evolving to prioritize small and local suppliers for increased supply chain competitiveness. The research found 87% of organizations report steady or growing executive support for programs, despite adapting to economic pressure and political noise with new priorities, repositioned messaging, and a 22% reduction in public reporting.

“Supplier diversity programs are directly tied to business performance and resilience. As the cultural and political landscapes shift, it’s critical to redefine responsible sourcing strategies to prepare for tomorrow’s volatility,” said Neeraj Shah, CEO and Founder of Supplier.io. “Our research shows leaders aren’t retreating in the face of change. They are repositioning programs, strengthening data and reporting, and elevating small and local suppliers more than ever. They are evolving for the next era of inclusive sourcing.”

Due to changing external narratives, nearly half of organizations updated their supplier diversity program messaging, moving from broad descriptions to defining what diverse means (including small, veteran, and other suppliers). Thirty-eight percent plan to deepen their focus on small suppliers, and 46% expect to increase small-supplier sourcing efforts, tying supplier diversity more directly to sourcing strategy, competition, and resilience.

Additional key findings from the 2025 State of Supplier Diversity Report include:

• External risks to programs are expected to continue throughout 2026. Leaders anticipate political and cultural shifts to be the biggest risk to their supplier diversity program (39.6%), followed by the economy (20.7%), and potential budget cuts (18.9%) – fueling the need to adjust messaging and positioning even more.
• Shifts in messaging drive changes in metrics: Teams reported moving beyond traditional spend reporting and tracking a broader set of business performance-related results, such as impact on RFP wins (46%), economic impact (43%), and cost savings (40%).
• Supplier validation models are changing. The research shows a 74% increase in companies with no certification agency council membership. As organizations reduce reliance on traditional certification bodies, data issues persist. Teams using onboarding data or manual processes reported 40% more data challenges.
• Data quality and integrity are critical to program success. As supplier diversity becomes more scrutinized, 33% of organizations report an increased focus on data quality. Twenty-eight point seven percent are prioritizing improved technology support. In 2026, teams expect a 30% increase in internal tracking, a 34% increase in economic impact reporting, and 56% plan to report publicly – signaling the need for a strong data foundation today.

Now in its eighth year, the 2025 State of Supplier Diversity Report compiles insights from 225 supplier diversity, procurement, sourcing, and responsible sourcing leaders. Sixty percent of respondents work at organizations with revenues of $1B or more, and represent a range of industries including manufacturing, business services, technology, retail, media, energy, and finance.

Download the full 2025 State of Supplier Diversity report here.