The Shifting Landscape of Supplier Engagement & Diversity in 2025

By Mona Lisa Faris
President & Founder, ConnectComm Magazine (formerly ConnectComm) and U.S. Veterans Magazine

In 2025, supplier engagement is no longer just about procurement—it’s about resilience, innovation and inclusion. Across the U.S., corporate supply chains are evolving rapidly. However, for many small and women-owned businesses, the journey is becoming increasingly complex.

A Silent Retraction in DEI

While supplier diversity made significant progress over the past decade, we’re now seeing a subtle pullback in diversity, equity and inclusion (DEI) initiatives due to legal and political pressures. Even the federal government has recently removed DEI as a consideration in procurement decisions. This shift is especially impacting Black women entrepreneurs, many of whom already face significant barriers to accessing capital, contracts and certifications.

Women-Owned Businesses: Still Climbing Uphill

Women-owned businesses now number over 12 million in the U.S., but in many industries, they still receive less than 5% of corporate procurement spending. Certification programs, such as WBENC and WOSB, are valuable but can be time-consuming and costly for smaller firms to manage without support.

Bright Spots: Corporate Innovation Leading the Way

Some organizations are stepping up. JPMorgan Chase recently launched initiatives to increase support for diverse suppliers, offering funding, training and resources. Verizon has committed $5 billion through its Supplier Accelerator aimed at small and diverse businesses. Costco continues to expand its supplier diversity programs to include more women- and minority-owned businesses.

Procter & Gamble (P&G) has a strong commitment to supplier diversity, aiming to increase its global spend with diverse- and women-owned and led businesses to $5 billion annually by 2030. They’ve already surpassed $3 billion in diverse procurement spending. This commitment is part of their broader ESG (Environmental, Social and Governance) strategy and aims to create a more inclusive supply chain.

AI-powered tools are also helping procurement teams find, vet and onboard diverse suppliers more quickly and efficiently.

And the data is promising:

• 71% of U.S. companies say supplier diversity is more important now than ever.
• 82% expect their programs to grow in the next two years.
• Metrics are evolving beyond “spend” to track real impact—such as retention, job creation and ESG goals.

Looking Ahead: WBENC and the Future of Supplier Engagement

I will be attending WBENC next week in New Orleans, which is why I chose this topic. When I am there, I plan to engage with constituents and peers to take the temperature and gather their thoughts and perspectives on the future of supplier engagement heading into 2026. It’s a critical moment for the supplier diversity community to adapt, innovate and keep driving progress.

Where Do We Go From Here?

Corporations must reimagine supplier engagement as a strategic business priority—not just a compliance requirement. Policymakers should ensure access and equity remain at the heart of procurement reform. And women-owned businesses need clearer pathways, stronger partnerships and a genuine seat at the table.

As I always say, “Supplier Diversity—or how we have to reference it as Supplier Engagement—isn’t just good for society—it’s smart business. Let’s build supply chains that reflect the full strength, creativity and diversity of our economy.”

— Mona Lisa Faris

Sources:

• WBENC. (2024). Supplier Diversity and Women-Owned Business Statistics. wbenc.org
• JPMorgan Chase. (2024). Supplier Diversity Initiatives. jpmorganchase.com
• Verizon. (2024). Supplier Accelerator Program. verizon.com
• Costco Wholesale. (2024). Supplier Diversity. costco.com
• Procter & Gamble. (2023). Supplier Diversity & Inclusion. pg.com
• TealBook. (2024). Trends in Supplier Diversity. tealbook.com
• SupplierIO. (2024). Supplier Diversity Reports. supplier.io
• JAGGAER. (2024). Procurement Innovation and Supplier Diversity. jaggaer.com
• U.S. Government Accountability Office. (2023). Federal Procurement Policy Updates. gao.gov

Sources:

• Wall Street Journal, “Companies Roll Back DEI Programs Amid Legal Pressure,” October 2023
• Bloomberg Government, “Biden Admin Reconsiders DEI Policies in Contracting,” March 2024
• Brookings Institution, “Supporting Black Women Entrepreneurs,” 2022
• American Express, State of Women-Owned Businesses Report, 2024
• Verizon Newsroom, “Verizon Commits $5 Billion to Diverse Supplier Accelerator,” January 2025
• Procurement Leaders, “AI in Supplier Diversity,” 2024
• Institute for Supply Management (ISM), Annual Supplier Diversity Report, 2024
• Reuters, “JPMorgan Chase Faces DEI Pushback, Cuts Some Diversity Roles,” November 2023

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This article was originally published on diversitycomm.net.