Case Study: Enhancing Supplier Diversity Insights through Data Enrichment and Analytics for a Leading Midwest Insurance Company

The client is a leading insurance company headquartered in the Midwest, operating across multiple states with a strong focus on equity, inclusion, and community impact. In 2023, the organization identified the need to improve the management and visibility of its supplier diversity program as part of its broader corporate responsibility goals.

With a vast and complex supplier network accumulated over years of operations, the company faced challenges in maintaining accurate, consistent, and meaningful supplier data. Many records were outdated, duplicated, or incomplete, making it difficult to evaluate diverse supplier participation or report progress to stakeholders.

Committed to advancing diversity through data-driven decision-making, the company partnered with STARS, a leader in data enrichment and analytics solutions, to modernize its supplier database. This collaboration enabled the insurer to build a clean, classified, and analytics-ready supplier foundation, supporting smarter procurement strategies and measurable diversity outcomes.

Client Background 

A leading insurance company headquartered in the Midwest recognized a critical need in 2023 to strengthen the management of its supplier base and improve visibility into its supplier diversity performance. The organization, with a large operational footprint across multiple states, had made a corporate commitment to advancing equity, inclusion, and community impact through its procurement practices. 

However, over the years, the supplier database had grown in size and complexity. It contained thousands of supplier records, many of which were outdated, duplicated, or missing key information. This limited the organization’s ability to identify diverse suppliers accurately, assess spend performance, and communicate progress to internal stakeholders and external partners. 

Leadership sought to transform this challenge into an opportunity: to create a reliable, data-driven foundation for supplier diversity analytics that would guide future decision-making and investment. 

To achieve this goal, the insurance company partnered with STARS, leveraging its data enrichment and analytics capabilities to cleanse, enrich, and analyze supplier data with precision and efficiency. 

Challenges faced by the Client

The client faced several interconnected challenges across data management, reporting, and strategic insight. 

1. Inconsistent Supplier Records

The supplier master file included duplicate and incomplete entries. Variations in company names, outdated addresses, and missing certifications created confusion and redundancy. 

2. Limited Diversity Classification

Many suppliers lacked proper classification, such as minority-, women-, veteran-, or small business status. Without this categorization, it was impossible to assess true diversity participation or track diverse spend effectively. 

3. Lack of Standardized Data Sources

Supplier information came from multiple internal systems, procurement platforms, and external partners. The lack of a unified process led to inconsistencies and made it difficult to align diversity reporting across business units. 

4. Insufficient Analytics Capability

The procurement and supplier diversity teams lacked the data granularity and analytical tools to segment suppliers by certification, ethnicity, gender, or size. This hindered efforts to build actionable insights or measure progress over time. 

5. Time-Consuming Manual Processes

Data cleansing and validation were handled manually, taking months to complete. The process delayed reporting cycles and diverted resources away from strategic supplier engagement. 

The organization needed a scalable, automated, and analytics-driven approach to cleanse supplier data, enrich it with accurate diversity classifications, and deliver visual insights that could inform decision-making. 

STARS’ Solution 

To meet these challenges, STARS implemented a comprehensive data enrichment and supplier diversity analytics solution through its proprietary platform. The solution was tailored specifically for large, data-intensive enterprises that needed high accuracy, auditability, and actionable insights from their supplier data. 

1. Data Scrubbing and De-Duplication

STARS began by performing an extensive data scrub of the client’s supplier master file, which contained 4,689 records. Through validation algorithms and manual review, duplicates and invalid entries were identified and removed. 

• 160 duplicate records and 17 invalid entries (missing addresses or incomplete details) were excluded. 
• 4,512 records remained as the verified, enriched dataset forming the baseline for analysis. 

This process ensured that all records entering the analytics workflow were accurate, consistent, and ready for classification. 

2. Supplier Diversity Classification

Each supplier was analyzed to determine diversity status and classification using multiple data sources, including the System for Award Management (SAM) database, supplier self-certifications, and verification through recognized agencies such as WBENC, SBA, and NMSDC. 

3. Diversity Segmentation and Analytics

Suppliers were categorized by size, diversity type, ethnicity, gender, and certifying agency. 
Key highlights from the analysis included: 

• Small and Diverse 
• Large and Diverse 
• Non-Diverse 

Within the diverse supplier group, further breakdown revealed: 

• Women-Owned Businesses (WBE) 
• Minority-Owned Businesses (MBE) 
• Small Businesses (SBE) 
• Service-Disabled Veteran-Owned Businesses (SDVOB) 
• Veteran-Owned Businesses (VOB) 
• Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) 

4. Ethnicity-Based Insights

Among the small and diverse suppliers, STARS analytics uncovered detailed segmentation by ethnicity. 

• African American 
• Asian American (including Asian Indian and Pacific Islander) 
• Hispanic American 
• Native American 
• Caucasian American 
• Multi-Ethnicity / Unknown 

This granular insight provided the client’s diversity team with a clear view of representation across communities, enabling targeted outreach and supplier development initiatives. 

5. Gender and Agency Analysis

The enrichment also included a detailed gender and agency summary. 

• Gender Distribution: 
  • Female-Owned 
  • Male-Owned 
  • Non-Binary / Third Gender 
  • Unknown 
• Certifying Agencies: 
  • System for Award Management (SAM) 
  • Small Business Administration (SBA) 
  • WBENC 
  • NMSDC 
  • CPUC 
  • NGLCC and Others 

The analysis highlighted that most certifications originated from federal-level databases, indicating opportunities for expanding engagement with regional and private-sector agencies. 

6. Visualization and Reporting

STARS presented the enriched data through visual dashboards, including the “Supplier by Diversity” chart, which showcased the distribution of suppliers across categories such as MBE, WBE, SBE, VOB, and WOSB. 

The visual analytics provided leadership with an at-a-glance understanding of supplier diversity composition and helped identify focus areas for improvement. 

Implementation Process 

The project was completed within the expected timeframe and followed a structured four-phase process. 

1. Assessment and Data Gathering

The client provided supplier records exported from its ERP and procurement systems. STARS assessed data structure, field completeness, and existing classifications. 

2. Data Scrubbing and Validation

Automated scripts identified duplicate, outdated, and incomplete records. These were reviewed manually for accuracy before being excluded. 

3. Classification and Enrichment

STARS cross-referenced supplier data against multiple public and proprietary diversity databases, including SAM.gov, and enriched records with verified classification and certification details. 

4. Analysis and Reporting

The final dataset was visualized in a detailed dashboard, supported by Excel-based summaries and graphs. STARS delivered both raw data and interactive visuals for internal use. 

Business Impact 

The introduction of the STARS data enrichment and analytics solution delivered measurable value across operational, compliance, and strategic areas. 

1. Data Accuracy and Integrity

After the scrubbing process, the supplier master file achieved 99 percent data accuracy, providing the procurement and diversity teams with a reliable foundation for all future reporting and analysis. 

2. Enhanced Diversity Visibility

The enriched dataset provided a clear and comprehensive view of supplier diversity composition. Leadership could now identify small, diverse, and certified suppliers with confidence and track engagement across all categories. 

3. Improved Reporting Efficiency

What previously took weeks of manual effort was replaced with an automated and repeatable process. The company could now generate supplier diversity summaries, certification breakdowns, and demographic insights in a fraction of the time. 

4. Strategic Insights for Supplier Engagement

The analytics revealed underrepresented categories, such as Native American and Asian American suppliers, guiding leadership to focus outreach efforts and create new partnership opportunities. 

5. Strengthened Compliance and Transparency

Accurate and verifiable data positioned the company to meet both internal audit requirements and external reporting obligations. The transparency of results reinforced confidence among leadership and external stakeholders. 

6. Long-Term Partnership

The success of the engagement led to a multi-year partnership between the company and STARS. The client recognized the value of STARS accuracy, promptness, and deep understanding of supplier diversity analytics. 

Conclusion 

Through its collaboration with STARS, the Midwest-based insurance company transformed a fragmented supplier database into a powerful tool for insight and inclusion. The project demonstrated how precise data enrichment and analytics can redefine supplier diversity management by turning static information into actionable intelligence. 

With accurate data, clear visibility, and advanced reporting, the company is now equipped to make informed decisions, enhance supplier engagement, and further its commitment to economic inclusion. 

This success story highlights a broader truth: achieving supplier diversity excellence begins with data. STARS provides the foundation organizations need to move from fragmented records to measurable impact. 

Reach STARS for supplier diversity that delivers visibility, accuracy, and measurable impact.