Every company is part of a broader supply chain that includes third-party providers of products and services. Main suppliers like Direct Mail Depot, referred to as Tier 1, work directly with the company. Other suppliers, DMD included, are categorized as Tier 2. While Tier 1 suppliers are often the focus of supplier diversity efforts, the potential impact grows when Tier 2 suppliers are included.
Tier 1 spend refers to the direct procurement dollars spent by a company with certified diverse suppliers.
Tier 2 spend refers to the procurement dollars spent by a company’s suppliers with certified diverse suppliers. In this case, Tier 2 suppliers are essentially your suppliers’ suppliers.
Working with Tier 2 suppliers enables your company to extend its diversity spend while maintaining relationships with existing suppliers or accessing those with unique capabilities. Tier 2 diversity spend is a critical part of the future of supplier diversity.
There are many benefits to utilizing Direct Mail Depot for your Diversity Spend:
- You can access a wider pool of suppliers with unique perspectives and capabilities. This can lead to improved product quality, and enhanced customer satisfaction.
- This brings diverse perspectives that fuel innovation, sparking creative solutions to help your business stay ahead of the competition.
- When you Invest in diverse businesses, this empowers underrepresented groups, drives economic growth and creates a more inclusive and sustainable economy.
- By aligning with diverse suppliers, this ensures that your business reflects the broad spectrum of your customers and communities, strengthening trust, loyalty, and gaining deeper connections.
As a certified National Minority Business Enterprise (MBE) and a woman-owned, managed, and controlled business, Direct Mail Depot is committed to supporting and fostering the growth of minority enterprises.
Reach out to DMD to be your partner for Tier 1 or Tier 2 Diversity spend.
