How Your Small Business Can Benefit From Diverse Supplier Certification

In our highly competitive marketplace, one way for small businesses to stand out is by getting a Diverse Supplier certification. These certifications recognize businesses that are majority-owned, operated, and managed by marginalized and equity-deserving groups, and help level the playing field when it comes to procurement opportunities. From securing big contracts to boosting your reputation, obtaining Diverse Supplier certification can be a huge advantage for your small business.

SBBC connected with Kailey Gilchrist, Manager of Corporate Business Development from Canada’s 2SLGBTQI+ Chamber of Commerce (CGLCC) and Founder of NONA Vegan, to talk about the advantages of supplier diversity and how to navigate procurement opportunities as a small business.

What Is Procurement?

If a business, government, or other organization needs resources they don’t have, they must procure them from an outside source. “Procurement refers to the entire purchasing cycle from analyzing suppliers based on more than just cost, to considering how the purchases support an organization’s long-term business goals, to the actual purchasing of goods and services,” Kailey said. 

For example, during major events like the 2026 FIFA World Cup in Vancouver, there will be procurement opportunities in many industries such as construction, hospitality, media, retail, entertainment, and more. This means that businesses like yours will have the chance to supply necessary products and services to help the event succeed.

Here are two main forms of procurement:

  • Direct – Products or services procured for an organization’s customers, such as t-shirts on the shelves of a retail store.
  • Indirect – Products or services procured to support a company’s operations, such as the property maintenance contractor that services the retail store locations.

What Is Supplier Diversity?

Supplier Diversity means including a variety of suppliers from different underrepresented groups in the procurement process. Organizations that champion Supplier Diversity programs are those seeking to diversify their spending by deliberately pursuing suppliers from minority, marginalized, and equity-deserving groups. These include suppliers who identify as Black, Indigenous, people of colour, 2SLGBTQI+, women, disabled, and veterans.

“Supplier Diversity initiatives are incredibly important as they strive to create equitable business opportunities, financial empowerment for diverse-owned businesses, and a more inclusive economy overall,” Kailey said.

How Organizations Benefit From Supplier Diversity

Here are some ways that organizations benefit from having diverse suppliers:

  • Innovation – Diverse business owners bring unique lived experiences, offering fresh perspectives and innovative solutions.
  • Agility – Diverse suppliers are often quicker to adapt to the ever-changing business landscape.
  • Access to customers – Organizations see the diversity within their own customer base. Diverse suppliers can offer products or services that will resonate with the diverse communities that these organizations serve.
  • Cost reduction – Sometimes, diverse suppliers can offer their goods or services for a cheaper price compared to larger companies because they have reduced overhead costs and a more direct route to purchasing. Though, Kailey emphasized, “Diverse suppliers should never devalue their worth!”

What Is a Diverse Supplier Certification?

Diverse Supplier certifications recognize companies that are majority-owned, operated, and managed by someone from a diverse group. Kailey explained, “These certifying bodies do the due diligence in order to provide organizations with the assurance that they are procuring from actual diverse businesses, and confidence that their Supplier Diversity initiatives are benefitting equity-deserving groups.”

Certifying bodies in Canada include:

How Businesses Can Benefit From Diverse Supplier Certification

Diverse Supplier certification can open doors to opportunities that may have excluded you in the past. Winning contracts can be tough for small businesses, but this certification can help you access corporate or government supply chains, and even special support as a vendor. “These business opportunities can provide your company with avenues to scale, expand, and export,” Kailey said. Embrace this certification opportunity and watch your business flourish.

How to Find Procurement Opportunities

There are lots of ways to find procurement opportunities, such as:

  • Applying to be on the vendor/supplier list of a certain corporation.
  • Signing up for a supplier network website, such as Ariba or Merx.
  • Responding to Requests for Proposals (RFPs) or Requests for Quotations (RFQs).

“This can be a great way to obtain more contracts and gain additional, and sometimes reoccurring, business,” Kailey noted.

How Small Businesses Can Compete With Larger Firms

Even though big companies have competitive advantages, small business owners can win with the right strategy. Here is some of Kailey’s advice for navigating the competitive marketplace:

  • Work with a certifying body, council, or Chamber of Commerce – These organizations can help you access supply chains that may be traditionally out of reach for new, small, and/or diverse businesses. They can also help encourage Contractors to open up to new suppliers and give you a chance.
  • Know your unique selling proposition – Start with small projects to build your capacity, client network, and project resume so you can gain corporations’ trust more easily. 
  • Seek corporations with pre-existing Supplier Diversity programs – Corporations with Supplier Diversity programs will be more interested in your business if it’s certified as a Diverse Supplier.
  • Leverage your diversity – This should be showcased when pitching against large corporations. Using statistics and facts is a great way to clearly highlight your business’ strengths and catch corporations’ attention.
  • Partner with other diverse-owned businesses – Collaborating with other diverse businesses on bigger contracts gives you the chance to build your project resume, expand your network, and gain experience, which could lead to more opportunities down the line.

Key Considerations When Pursuing Contract Opportunities

Kailey’s main goal with the CGLCC is to secure the Chamber corporate partners and provide support to suppliers. As a small business owner, she also has extensive experience and knowledge in successfully navigating procurement opportunities. She recommends small businesses consider these three aspects when pursuing contracts:

1. Know Your Strengths

“I’m a strong believer in niching – and knowing what exactly you are the best at, speaking directly to that strength, and not over-extending beyond that,” Kailey said. By knowing your limits, you’ll be able to focus your efforts, deliver quality results, and build your reputation.

“It can be tempting to go after massive contracts right when you start in the Supplier Diversity world, but beginning with smaller opportunities can be better for the sustainability of your company,” she said.

2. Know Your Position in the Supply Chain

Kailey also emphasized the importance of understanding your place in the supply chain, which looks something like this:

  • Tier 1 suppliers – Those that provide products or services directly to the purchasing company. 
  • Tier 2 suppliers – Those that provide their products or services to the Tier 1 companies. 
  • Tier 3 suppliers – Those that provide products or services to the Tier 2 companies.

For example, Tier 1 would be suppliers selling a finished engine to a car company, Tier 2 would be suppliers selling the parts to manufacture the engines, and Tier 3 would be the suppliers selling the raw materials to manufacture the engine parts.

While you may not have the capacity to be a Tier 1 supplier just yet, you could be a great fit for opportunities in Tier 2 or 3. Remember, starting small is key.

3. Know Who to Reach

When connecting with an organization’s Supplier Diversity program, keep in mind that Supplier Diversity managers aren’t usually the purchasers. “They are excellent advocates for your business and will recommend you to the appropriate procurement folks, but it is helpful if you already know who you need to reach at the company, or at least which department,” Kailey said. This is crucial, especially before any business-to-business (B2B) matchmaking opportunities with Supplier Diversity professionals. “The more detailed research you can do in preparation, the further these conversations will go,” she concluded.

Learn More

The procurement process can be confusing, but we’re here to support you. Check out BC Procurement Resources for help navigating the procurement process, as well as the Canadian Chamber of Commerce’s Supplier Diversity Handbook for more information on supplier diversity in Canada.

Also, take a look at the CGLCC website for more information, or contact Kailey at [email protected].

Small Business BC is Here to Help

SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.

Advertisement