Supplier diversity is a smart business strategy. It helps companies build more resilient supply chains, access new markets, and reflect the communities they serve. But too often, companies stumble at the starting line by treating diverse supplier selection as a checkbox instead of a strategic process.
At Datalou, we’ve worked with dozens of teams inside top media, advertising, marketing, and communications firms who want to get this right. And we’ve seen the same mistakes made over and over again. This blog is your cheat sheet on what not to do—and how to fix it.
Mistake #1: Choosing Suppliers Without Verifying Their Certifications
It sounds obvious, but many companies take supplier claims at face value. A business may say it’s woman-owned or minority-owned, but unless that classification is backed by a recognized certifying body, it won’t count toward your diversity spend—and worse, it could put you at risk in an audit.
What to do instead: Always require third-party certification (NMSDC, WBENC, Disability:IN, etc.) during onboarding. Use platforms like Datalou to automatically verify and track certification status in real time so you’re always compliant and confident.
Mistake #2: Prioritizing Spend Over Strategic Fit
Companies often get so focused on hitting a diversity spend target that they ignore whether the supplier is truly a good fit for the job. The result? Missed expectations, underperformance, and frustrated stakeholders.
What to do instead: Look at a supplier’s capabilities, past performance, capacity, and culture fit in addition to their certification. Don’t just ask “Are they diverse?” Ask, “Are they the right partner for this work?”
Mistake #3: Treating Diverse Suppliers as Temporary or Disposable
Some companies treat diverse suppliers like one-off project vendors instead of long-term partners. This approach limits performance, creates unnecessary onboarding cycles, and weakens supplier loyalty.
What to do instead: Build supplier relationships that go beyond a single contract. Identify high-performing diverse suppliers and invest in their growth. Track outcomes and create opportunities for them to scale with you over time.
Mistake #4: Failing to Educate Internal Teams on the Selection Process
Procurement teams may understand how to vet and onboard suppliers, but what about your marketing, operations, or project leads? If those decision-makers don’t know what to look for—or how to use your supplier diversity system—they’ll fall back on familiar (often non-diverse) vendors.
What to do instead: Train all relevant departments on your supplier diversity goals, the tools you use (like Datalou), and how to identify good supplier candidates. When everyone understands the “why” and “how,” they make better choices.
Mistake #5: Relying on Spreadsheets or Disconnected Systems
You can’t scale a supplier diversity strategy if you’re managing it with spreadsheets, email chains, and outdated procurement systems. These methods are error-prone, hard to audit, and nearly impossible to analyze at scale.
What to do instead: Use an integrated platform that consolidates supplier records, automates verification, and generates real-time reports. Datalou eliminates manual tracking and gives your team a single source of truth.
Final Thoughts
Selecting the right diverse suppliers isn’t just about filling a quota. It’s about choosing strategic partners who help your business grow, innovate, and stay accountable to your values.
If you want to avoid these mistakes and elevate your supplier diversity program, Datalou is here to help. Our platform simplifies selection, automates verification, and gives you the insights you need to choose—and grow with—the right suppliers.
