Today’s consumer judges your brand by more than what you sell. Customers, partners, vendors, and employees want to know how companies operate – and who they choose to work with. The values shown behind the scenes now matter as much as the product itself. In fact, research from 2025 shows that more than 80% of U.S. consumers are more likely to recommend brands based on shared values than on product quality or price alone.
That shift matters to every business leader. Loyalty is no longer driven solely by performance or cost. Increasingly, consumers care more about purpose, fairness, and trust. These perceptions now influence buying decisions across nearly every industry, from healthcare and retail to financial services, technology, and travel.
For marketing and procurement leaders, this evolution has direct implications. Supplier diversity and inclusive procurement strategies are emerging as strategic drivers of brand credibility, innovation, resilience, and growth. What was once treated as a compliance exercise is now a core business strategy.
We’ve explored supplier diversity before. In our November 2024 article, Building a Better Future: The Importance of Supplier Diversity in Today’s Market, we covered foundational definitions and benefits. As we move into 2026, new trends and priorities have come into focus. This article explores what’s changed, what leaders are prioritizing now, and how inclusive procurement is evolving from program to strategy.
If you’re new to supplier diversity, we recommend starting with that earlier article for background before diving into what’s next.
Disruption is no longer the exception. It’s the operating environment. Economic uncertainty, supply chain volatility, evolving customer expectations, and increased scrutiny around transparency and values are shaping how organizations of every size and sector do business.
For marketing and procurement leaders alike, these pressures are no longer theoretical – they directly impact brand perception, sourcing efficiency, and long-term growth.
When approached strategically, supplier diversity can help address these pressures. A larger supplier network enhances your supply chain. It lowers your dependence on a small group of vendors and introduces new viewpoints that challenge traditional ideas. It also creates a tangible way to align purchasing decisions with your broader business objectives.
Inclusive procurement, in particular, has become a lever for competitiveness, operational performance, and community impact.
A supplier diversity program focuses on who is included in your supplier network. It intentionally creates opportunities for businesses owned by underrepresented groups to compete for business. These businesses could be minority-owned, women-owned, veteran-owned, LGBTQ+-owned, disability-owned, or small/local suppliers.
Inclusive procurement builds on that foundation by focusing on how companies make sourcing decisions. Inclusive procurement integrates access, transparency, and fairness into the buying process. It doesn't operate as a separate program. Instead, these values are imbedded into every step. Qualification criteria, bid processes, timelines, and evaluation standards are designed to ensure that capable suppliers aren’t excluded due to size, legacy relationships, or structural barriers.
Performance expectations remain high. Contracts are awarded based on merit. The difference is that the path to consideration is now more intentional, consistent, and accessible.
Supplier diversity opens the door. Inclusive procurement redesigns the system behind it.
Biopharmaceutical company Merck offers a clear, scalable example of inclusive procurement in practice. On its website, the company outlines how it goes beyond traditional supplier diversity targets by investing in inclusion rather than outcomes.
Merck’s approach includes supplier mentoring, second-tier engagement, and development programs designed to help small and underrepresented suppliers compete effectively within its broader sourcing strategy. The goal is long-term supplier readiness and fair access to opportunity, while still maintaining rigorous expectations for quality, scale, and performance.
Procurement Magazine ranks Merck as the top global leader in inclusive sourcing across complex supply chains. This recognition demonstrates that inclusive procurement can succeed at scale without compromising standards.
For foundational definitions and an overview of supplier diversity, including why it matters and how it supports communities, please read our November 2024 post.
Diverse suppliers often bring different perspectives shaped by their lived experiences, markets served, and operating environments. In marketing and production, that diversity can translate into more culturally relevant campaigns, new approaches to materials and fabrication, and creative problem-solving that helps brands stand out.
If you rely on a narrow supplier base, you risk sameness – and stagnation. Broadening your network increases speed, adaptability, and innovation, all of which matter in fast-moving markets and crowded categories.
Customers increasingly expect brands to reflect fairness and opportunity in how they operate. 24% of multicultural consumers reconsider buying from brands whose values don’t align with their own. In addition, 1 in 3 Americans view the causes that brands support as the strongest signal of their values.
Many organizations are now more measured in how they publicly communicate their supplier diversity efforts. That’s a deliberate choice. The reputational benefits remain strong internally and externally. Employees, partners, vendors, and customers value inclusive practices.
Inclusive procurement enhances brand credibility when it’s embedded into culture - not treated as a temporary campaign or talking point.
Supplier diversity remains a requirement in many RFPs, particularly in enterprise, public sector, and regulated industries. Brands with strong programs are better positioned to meet diversity spending goals and demonstrate operational maturity.
At the same time, consumer expectations continue to rise. More than 1 in 4 Americans say brand values matter more today than they did five years ago. That shift influences purchasing decisions, pricing tolerance, and long-term loyalty - making inclusive procurement a competitive advantage.
An inclusive supplier base reduces dependency on a limited set of vendors, increasing flexibility during times of disruption.
According to Supplier.io’s 2025 State of Supplier Diversity Report, 50% of organizations identify supply chain resilience as one of the top benefits of supplier diversity and inclusive sourcing programs. Access to a wider pool of qualified suppliers enables organizations to pivot faster and respond more effectively to market changes.
Insights from the 2025 State of Supplier Diversity Report reveal a shift in how programs position, measure, and manage their impact.
Despite current headlines, 87% of supplier diversity programs report the same or increased executive support. More than half of leaders now view these programs as strategically important to their business.
Public reporting declined from 63% to 49% in 2025. Experts believe this reflects caution in external messaging - not a reduction in commitment. Internally, leaders are refining metrics, improving data accuracy, and aligning programs more closely to business outcomes.
Procurement leaders are moving beyond basic spend reporting. They’re now measuring:
Contribution to RFP wins
Economic impact
Cost savings
Brand and reputational value
Supply chain resilience has emerged as the most commonly cited benefit.
Nearly one-third of organizations increased investment in data quality, validation tools, and technology platforms. Accuracy and defensibility now matter more than ever as programs face heightened scrutiny.
Many organizations updated their websites and supplier portals to clearly define what “diversity” includes. This often means expanding the focus to small, local, and veteran-owned suppliers, while reinforcing that contracts are still awarded based on merit.
According to the Supplier.io report, business leaders expect continued focus on small supplier sourcing, stronger internal tracking, and tighter alignment between supplier diversity and sourcing strategy
Best practices include:
Seting measurable goals tied to business outcomes, not just spend
Evaluating suppliers for both values alignment and performance
Partnering with certifying organizations for credibility and access
Educating internal teams across procurement, marketing, and leadership
Focusing on strategic risk reduction, not just tactical compliance
Political and cultural shifts remain the most significant perceived risk in 2026, but most organizations plan to maintain or strengthen their programs.
Supplier diversity isn’t a trend for Phase 3. It’s foundational to how we operate and scale alongside our clients. Since 2021, Phase 3 has been certified as a Minority-Owned Business Enterprise through the Georgia Minority Supplier Development Council. We are also recognized by the National Minority Supplier Development Council as a Corporate Plus® Member, demonstrating our ability to execute national contracts for enterprise organizations.
We don’t view supplier diversity as a compliance task or a promotional talking point. Instead, we see it as a way to build a stronger, more nimble company. Our Supplier Diversity Program enables us to responsibly while supporting other small, like-minded businesses. You can read more about our certification and approach here.
Supplier diversity is no longer optional for brands that want to grow responsibly and competitively. The conversation has matured. Leaders are asking better questions, setting clearer expectations, and measuring what actually matters.
If you’re evaluating your current strategy or looking to deepen your impact, Phase 3 is ready to help. From national execution to inclusive sourcing, we partner with brands that want to do this work thoughtfully and effectively.
Let’s talk about how inclusive procurement can work harder for your business. Contact us today.