SuppliersDiverSity Be t Practices

As more and more consumers realize the impact businesses have on their individual communities, they begin to insist that these organizations do business with people in their community. in turn, the benefits organizations reap for partnering with Minority- and Women-owned Business Enterprises (M/WBEs) include: • Having a larger pool of qualified suppliers; • Having better products and services which result from more competition; and, • Having better community relations and greater product loyalty from consumers. We asked Supplier Diversity leaders to share what’s working for them, in the hope that their best practices will inspire some of your supplier diversity strategies.

brenda MuLLinS

Chief Diversity Officer

AflAc
How are your buyers engaged in your Supplier Diversity program? Departmental purchasing managers are requested to include diverse suppliers in their product selection processes, and each department’s use of diverse suppliers is tracked quarterly and reviewed by management. Quarterly supplier diversity expenditure reports measure each buyer’s department in terms of their respective percentage contribution to the overall corporate supplier diversity spend. Briefly describe any outreach programs you use to certify potential diverse suppliers: Aflac’s Supplier Diversity Manager is a member of the WBENC certification team sponsored by the Greater Women’s Business Council of Georgia, in addition to being on the board of the Georgia Minority Supplier Development Council (GMSDC), an affiliate of the National Minority Supplier Development Council (NMSDC), which certifies minority business enterprises. Aflac is also a corporate member of U.S. Pan Asian American and Georgia Hispanic Chambers of Commerce, Mexican American Chamber, and National Veterans supplier diversity organizations that use the certification services of WBENC, NMSDC, as well as their own processes. How do you mentor diversity suppliers to support non-traditional areas of the business? In cooperation with the

Headquarters: Columbus, Georgia Web site: www.aflac.com Primary Business: Supplemental insurance

University of Georgia Small Business Development Center, and formally with the Governor’s Mentor Protégé Program, Aflac provides mentors to small and diverse businesses in various areas of business.
How are your supplier diversity goals linked with the goals of the organization? Aflac’s commitment to providing

opportunities to diverse suppliers is stated as an executive management imperative and monitored. Additionally, language is contained in all Aflac contracts stating our expectations of suppliers to support our supplier diversity initiative.

How do you identify and verify companies that qualify as minority suppliers? Suppliers are required to register on Aflac’s online portal if they wish to establish a business relationship. This allows diverse suppliers to identify their diversity category and certification agency. Departmental purchasing managers access this portal to identify and select diverse suppliers for opportunities. Aflac also has access to the WBENC and NMSDC databases of certified diverse suppliers. How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? The Aflac business case for supplier diversity emphasizes the continuous development of significant business opportunities for

diverse suppliers, not only as a commitment to corporate social responsibility, but as a strategic contribution to the bottom line.
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Supplier DiverSity Best Pr ac tices

Sherri Macko

Manager, Diversified Supplier Program

AMericAn Airlines
How are your buyers engaged in your Supplier Diversity program? Commodity Managers actively participate in M/WBE events to identify potential M/WBE suppliers, and they actively engage these suppliers in bid opportunities. M/WBE suppliers are part of their Value Strategy for their specific commodity. Commodity Managers are required to attend Supplier Diversity training that is conducted bi-annually, and are recognized by their Purchasing Leadership team for meeting or exceeding M/WBE spend goals. Briefly describe any outreach programs you use to certify potential diverse suppliers: Our Supplier Diversity Manager and a Senior Commodity Manager serve on the Certification Committee for the DFWMSDC (regional NMSDC Council), and actively participate in site visits to certify MBE suppliers. How do you mentor diversity suppliers to support non-traditional areas of the business? We work with some of

our current M/WBE suppliers to help them grow and expand their product offerings. Also, we open doors for our M/WBE suppliers to become a supplier to some of our large Prime suppliers.
How are your supplier diversity goals linked with the goals of the organization? American Airlines realizes that

Headquarters: Fort Worth, Texas Web site: www.aa.com/supplierdiversity Primary Business: Transportation

doing business with M/WBEs is a good business decision, and that it is the right thing to do. The Supplier Diversity Program goals align very closely with overall Corporate goals. These goals and successes are reviewed annually with the Board of Directors Diversity Committee to ensure we are aligned and making a positive impact to the company. As a business and as a good corporate citizen, we know that it’s important for our supplier base to reflect our customer base and to provide economic opportunities to women and diverse suppliers. Therefore, our Supplier Diversity Program is closely linked with our Diverse Segment Marketing teams and our Employee Resource Groups in the community.

How do you identify and verify companies that qualify as minority suppliers? We sponsor and participate in many different M/WBE events that provide opportunities to meet certified M/WBE suppliers. We are also active in the Certification Committee of our local NMSDC Council. Also, we require our M/WBE suppliers to register on our Supplier Diversity database, and provide us with their M/WBE certification. We understand the value of utilizing a certified M/WBE supplier. We often conduct training sessions to various minority organizations on “How to do business with AA,” and “Why certification is important.” PDJ

Liveda cLeMentS

Senior Manager, Business Relations & Supplier Diversity

Blue cross Blue shield of MAssAchusetts (BcBsMA)
How are your buyers engaged in your Supplier Diversity program? Supplier diversity is integrated into our procurement practice. Business leaders are required to include at least one minority- or women-owned business enterprise (M/WBE) in all qualifying competitive bid opportunities. The Business Relations and Supplier Diversity department is fully responsible for identifying and validating diverse businesses for inclusion in bids. We primarily use our Supplier Diversity vendor database, and the databases of the National Minority Supplier Development Council, the Women’s Business Enterprise National Council, and the State Office of Minority and Women Business Assistance to source competitive suppliers. How is their performance measured? BCBSMA establishes an annual percentage goal for supplier diversity that is tracked as a percentage of total spending. Supplier Diversity supports our business areas by providing spend analysis to set goals and highlight business opportunities. The divisions that increase or maintain a high percentage of spending with diverse businesses are recognized at our annual supplier diversity awards events. Do you have scholarships and/or training programs for minority companies? We have partnered with Next Street

Headquarters: Boston, Massachusetts Web site: www.bluecrossma.com

Financial (NSF), a reputable merchant bank and business advisor, to establish the Business Development Primary Business: Program. Our company gives partial scholarships to the selected program participants. Through the Health insurance Business Development Program, companies have access to NSF’s customized financial and management advisory services. As a result of the Program, participants have been able to more effectively focus the strategic direction of their businesses and enhance the competitive positions of their companies in the marketplace. Additionally, we have offered vendors a second business development program, the Future Focus workshop series. Future Focus is facilitated by leaders from NSF, and consists of four customized workshops that provide participants the frameworks and tools to address growth and profitability through business strategy and talent management, and the unique opportunity to strategize with other business leaders.
How do you mentor diversity suppliers to support non-traditional areas of the business? We recently launched a Mentor Program in which our team of

internal consultants, the Business Consulting Group (BCG), mentors one of our diverse business partners. For 12 months, BCG volunteers their core skills, providing strategic advice and leadership to the CEO of a selected minority- or women-owned business. PDJ
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Supplier DiverSity Best Pr ac tices

nita SMith

Supplier Diversity Manager

cdW llc.
How are your buyers engaged in your Supplier Diversity program? Our diverse suppliers are included in quarterly bid processes relating to specific technology products. CDW engages in strategic planning to consolidate multiple technology brands to diverse suppliers when applicable, and we maintain supply chain scorecards for top diverse distribution partners. Briefly describe any outreach programs you use to certify potential diverse suppliers: Through our semi-annual supplier database reviews, minority- and women-owned companies that are not certified are identified for possible certification. Depending on the supplier’s response, CDW will assist with the certification process. To date, CDW has supported four suppliers in achieving certification. How do you monitor and measure the purchasing department’s use of diverse suppliers? Spend is tracked
Headquarters: Vernon Hills, illinois Web site: www.cdw.com Primary Business: information technology hardware, software, advanced solutions, and services

quarterly throughout the entire organization and includes: spend by dollar by certification type (i.e., MBE,WBE,VBE, etc.); spend by department (from executive down to manager); spend by ethnicity; and spend with number of diverse suppliers (i.e., spend is with 1 company or 5).
How do you mentor diversity suppliers to support non-traditional areas of the business? CDW is engaged in a

formal mentor-protégé program in the State of Texas. Currently, we are mentoring a small, woman-owned business in areas relative to marketing and strategy planning.
How are your supplier diversity goals linked with the goals of the organization? Some of our goals at CDW

include increasing revenue, acquiring and retaining customers, and maintaining costs. Supplier diversity assists and supports all of these initiatives. It is also important to note that, by leveraging diverse suppliers in the supply chain process (from bidding to contract award), CDW is benefiting from superior products and service which can have a direct or indirect positive impact to the customer. Suppliers are also our customers. Although we may not be able to use each diverse supplier on each opportunity, we hope to build longlasting relationships for reciprocal purposes. We have seen cost savings and process improvement from current diverse suppliers. The small nature of these companies allows for increased flexibility, a willingness to impress, and ability to deliver superior results.

How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? Each supplier engagement, regardless of diversity affiliation or not, includes an extensive review that focuses on ability to supply,

financial strength, current supply, and customer base. Depending on the opportunity, extensive research is done to qualify a supplier or identify any concerns prior to contract engagement. PDJ

deniSe coLey

Director, Global Supplier Diversity Business Development

cisco systeMs, inc.
How are your buyers engaged in your Supplier Diversity program? The internal business partners are always involved, with the direction of the strategic sourcing team. Indirect spend opportunities within the Cisco organization are available using the Internet, and matchmaking meetings at industry events. How is their performance measured? The Strategic Sourcing Management team is measured on a

continuous basis. The company has a policy, the “Inclusion of Diverse suppliers in every RFX” process released through our Procurement organization. The RFX events and types are tracked and reviewed for compliance with this internal policy. The Global Supplier Diversity team members are measured to initiatives set forth by management at Cisco at the executive level.
Do you have scholarships and/or training programs for minority companies? We give partial scholarships to diverse suppliers to participate in the UCLA MDE program. This four-day program offers entrepreneurs a premiere educational opportunity to develop essential skills needed to increase their business’s productivity in the marketplace. How do you monitor and measure the purchasing department’s use of diverse suppliers? We monitor and measure

Headquarters: San Jose, California Web site: www.cisco.com/supplier/diversity Primary Business: information communications technology

our diverse spend quarterly. Our systems also allow us to analyze our top 10 diverse suppliers and conduct a gap analysis. We review our top 100 diverse suppliers on a quarterly basis, to make sure that the suppliers are receiving scorecards. We also participate in cross-functional activities, watch the spend amounts, and document any new services being procured by our business function stakeholders.

How do you mentor diversity suppliers to support non-traditional areas of the business? We have an Executive Mentor Protégé Program that includes

direct Procurement, indirect procurement, and partners/resellers. This program includes Cisco executives who mentor CEOs of diverse businesses about Cisco’s expectations, business strategy, and potential opportunities for increased spend.
How are your supplier diversity goals linked with the goals of the organization? The overarching initiative of Cisco is that we commit to spending 10%

of our total spend with diverse suppliers. This is an executive-level initiative for the company.
How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? This process is executed through the Supplier Performance Management (SPM) program on a quarterly basis. The objective is a

future stake schema for sourcing excellence. This enables us to proactively provide feedback to all stakeholders about their suppliers.
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Supplier DiverSity Best Pr ac tices

LuiS J. diaz
GiBBons, P .c.
How are your buyers engaged in your Supplier Diversity program? The professionals with purchasing power at our firm—for example, those in charge of facilities, information technology, client financial services, human resources, library, marketing, and other professional services—consider diversity an important purchasing criteria, and they assess vendors based in part on their commitment to diversity and certification as a W/MBE by appropriate certification bodies. Briefly describe any outreach programs you use to certify potential diverse suppliers: In the ordinary course, we conduct education sessions to assist potential suppliers with certification. We actively participate in workshops to teach and promote best practices and promote visibility for minority- and women-owned businesses. Training programs conducted by the Gibbons Diversity Initiative, via its Program & Events Committee, include the very popular “Diversity Makes Cents” presentation. At this program, diversity experts provide valuable insight on best practices that organizations can implement to develop a successful Diversity Initiative, discussing ways to measure an Initiative’s success through various means, including its impact on a company’s bottom line. How do you monitor and measure the purchasing department’s use of diverse suppliers? Our formal supplier

Chief Diversity Officer

Headquarters: newark, new Jersey Web site: www.gibbonslaw.com Primary Business: Legal Services

diversity program, GDI-123, launched in 2009, facilitates the monitoring and measurement of firmwide use of diverse suppliers. GDI-123 was designed to make it easy for Gibbons clients committed to diversity to accomplish seemingly conflicting objectives: the utilization of diverse Gibbons attorneys and W/MBE vendors to provide excellent service quality at great value.

How do you identify and verify companies that qualify as minority suppliers? As mentioned above, the supplier diversity program within our firm’s Diversity Initiative is designated GDI-123. In terms of process, vendors must register by completing a comprehensive survey in which they must also present credentials that satisfy the certification requirements of city, state, or federal agencies; the Women’s Business Enterprise National Council (WBENC); the National Minority Supplier Development Council (NMSDC) through their regional partners and affiliates; and other, similar certification bodies. We consider other certifications on a case-by-case basis if the proposed vendor meets the nationally recognized certification standards of at least 51% ownership, management, and control by minority and/or women group members. If a company is certified, and its products or services are relevant to our needs, it is input into our approved vendor database for consideration for future engagements. PDJ

raMie dingLe

Supply Chain Manager, international Sourcing

hAlliBurton
How are your buyers engaged in your Supplier Diversity program? Robust Supplier Diversity training is provided to employees with purchasing responsibility. Employees with buying and/or influencing power actively participate in the Supplier Diversity initiatives, including National Minority Supplier Development Council (NMSDC) and Women’s Business Enterprise National Council (WBENC) functions and activities to identify potential sources and opportunities. We have also established a Supplier Diversity Advocates Council, which encompasses several key supply chain professionals in active roles of engagement to support the Supplier Diversity initiative. Do you have scholarships and/or training programs for minority companies? Yes, scholarship funds are allocated

at both a regional and national level through NMSDC and WBENC. Our BEST Program (Business Education and Supplier Transformation) is a three-year program committed to engaging, building, training, and mentoring key strategic suppliers to grow and develop with Halliburton. In addition, our internal development and training programs are extended to our strategic M/WBE supply base as appropriate.
How do you mentor diversity suppliers to support non-traditional areas of the business? In addition to our BEST

Headquarters: Houston, Texas and Dubai, United Arab Emirates Web site: www.halliburton.com Primary Business: Energy Services

program, we have implemented Conductivity Coaches—senior level executives who mentor diverse suppliers on all areas of their business.

How are your supplier diversity goals linked with the goals of the organization? Halliburton’s Global Supplier Initiative supports the corporate strategy

by positioning the company as a supplier of choice for our customers. The Supplier Diversity Executive Advisory Board, consisting of senior level executives, assists the Supplier Diversity Team in establishing annual goals for the organization and is reflective of the organization’s overall goals.
How do you identify and verify companies that qualify as minority suppliers? By exhibiting and participating in national and regional conferences and tradeshows, networking with members of our industry council and with peers, publicizing our supplier diversity initiative through national and local advertising to recruit new suppliers, and contracting with a third party provider that maintains a database of qualified suppliers. How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? The award of business is evaluated and based on the total value proposition, and does not differ from our established supplier

selection and performance criteria.

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Supplier DiverSity Best Pr ac tices

Jean-JacqueS beauSSart

Chief Procurement Officer

KeyBAnK nAtionAl AssociAtion
How are your buyers engaged in your Supplier Diversity program? At Key, our inclusion strategy is a collaboration amongst procurement, the lines of business, and supplier diversity. The Supplier Diversity team meets monthly with all procurement managers, and quarterly with our line of business partners. These teams also meet annually to analyze purchasing trends and establish corporate goals and business opportunities for the coming year. Each team is represented on our internal Supplier Diversity Advisory Council (SDAC). How is their performance measured? Corporate Procurement and each line of business have unit and/or individual supplier diversity goals. These are assessed during performance reviews and can affect incentive compensation. Do you have scholarships and/or training programs for minority companies? Key has supported Partners First, a
Headquarters: Cleveland, Ohio Web site: www.key.com Primary Business: Financial services

minority business mentoring program affiliated with the Northern Ohio Minority Supplier Development Council (NOMSDC). Our goal was to bring majority and minority companies together to help develop minority businesses, share best practices, and increase business relationships. This partnership generated significant business opportunities and resources for participating M/WBEs. Most recently, we have been engaged with the Greater Cleveland Partnership’s MBAccelerator 2.5+, a program focused on growing the size, scale, and infrastructure of African-American- and Hispanic-owned MBEs with annual revenues of at least $2.5 million, in a 16-county area of Northeast Ohio.

How do you monitor and measure the purchasing department’s use of diverse suppliers? To challenge our business units to maintain momentum and

continue to improve performance, Corporate Procurement and Supplier Diversity partner to establish a forecast of M/WBE spend. We then prepare an opportunity analysis to review with each line-of-business executive. The line of business and Procurement agree on a spend goal that supports Key’s corporate-wide spend goal. Results are reported monthly and shared with the CEO and senior executives.
How do you mentor diversity suppliers to support non-traditional areas of the business? We are currently working with 44 financial services institutions

across the country to develop a strategy for diverse suppliers in non-traditional areas.
How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? Key attends regional and national tradeshows across our Maine-to-Alaska footprint to identify qualified minority- and women-

owned businesses. We also encourage certified and viable M/WBEs to register on our website at www.key.com.

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nancy caLderon

national Partner in Charge, Operations

KPMG llP
How are your buyers engaged in your Supplier Diversity program? Our buyers are actively engaged in our Supplier Diversity program in several ways: through compliance with KPMG LLP’s Supplier Diversity Policy, as participants in our Supplier Diversity Task Force, and through their participation in periodic training events. Do you have scholarships and/or training programs for minority companies? KPMG provides subcontractors with

training opportunities as required, for specific skill development or other firm requirements.
Briefly describe any outreach programs you use to certify potential diverse suppliers: KPMG engages with diverse

Headquarters: new York City Web site: www.us.kpmg.com Primary Business: Audit, tax and advisory services

business advocacy groups who certify diverse businesses, including our Corporate Partners the National Minority Supplier Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), National Gay & Lesbian Chamber of Commerce (NGLCC), and U.S. Business Leadership Network’s Disability Supplier Diversity Program (USBLN DSDP). We also engage our diversity networks to act as volunteer members of certification committees and site visitors with these organizations. Furthermore, our Supplier Diversity Policy requires us to “encourage eligible suppliers to participate in a certification or classification process operated by a recognized agency” (defined to include the organizations listed above).
How do you mentor diversity suppliers to support non-traditional areas of the business? KPMG attends major

national Supplier Diversity events and targeted local events to provide guidance to prospective suppliers on areas of potential demand within the firm.
How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? Our Supplier Diversity Policy is the foundation of our program, and highlights the firm’s approach and commitment to Supplier

Diversity as well as the support of senior leadership. KPMG’s Supplier Diversity program is a significant and crucial component of our Sustainable Procurement strategy. We seek to engage our employees in Supplier Diversity at every opportunity, with a particular focus on the alignment of our diversity networks with the diverse business advocacy organizations we support. Our Supplier Diversity Task Force seeks to provide genuine access to opportunities by increasing the visibility of our procurement pipeline to potential suppliers, and conversely, increasing the visibility of diverse businesses’ capabilities to those individuals within the firm who are ultimately responsible for our choice of suppliers. PDJ
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Supplier DiverSity Best Pr ac tices

nancy deSkinS

Director, Corporate Agreements & Supplier Diversity

locKheed MArtin corPorAtion
How are your buyers engaged in your Supplier Diversity program? Lockheed Martin Corporation conducts face-to-face Supplier Information Sessions (SISs) and virtual SISs a total of 8 times a year. These two-way forums offer suppliers the opportunity to learn about Lockheed Martin business areas, and business area representatives can directly engage with potential new suppliers.

The virtual Supplier Information Sessions provide an opportunity for small business suppliers to share information on their company via web interface to buyers and small business liaison officers from across Lockheed Martin Corporation, without incurring travel or time-away costs. All technology and access costs are paid for by Lockheed Martin.
Do you have scholarships and/or training programs for minority companies? As a Billion Dollar Roundtable
Headquarters: Bethesda, Maryland Web site: www.lockheedmartin.com Primary Business: Aerospace and Defense

member, Lockheed Martin purchases over a billion dollars annually from minority- and women- owned businesses. To achieve this goal, there is a heavy focus on training. Lockheed Martin’s participation in the Mentor Protégé program has led to innovation in the development of new technologies at small, diverse businesses, with 25 current or pending agreements. Lockheed Martin’s training and technology resources assist these businesses in advancing their technology.
How are your supplier diversity goals linked with the goals of the organization? In 2008, 86% of our corporate

sales were to the agencies of the U.S. Federal Government. All of our contracts with the government contain small business participation requirements. To be successful in meeting our contract goals, we must have strong small business participation as subcontractors. One key facilitator for recognition of performance to goals is the Comprehensive Subcontracting Plan (CSP) that is negotiated annually. The CSP is signed off each year by the Director, Corporate Agreements and Supplier Diversity, as well as by the Vice President, Global Supply Chain Operations. In addition, the goals and actuals are reviewed semi-annually by Bob Stevens, Chairman of the Board and CEO, to ensure we are on track in meeting our diversity goals. law, asks businesses to self-certify their small, disadvantaged business and women-owned small business statuses. These self-certifications are crossreferenced with the Central Contractor Registration (CCR) database. PDJ

How do you identify and verify companies that qualify as minority suppliers? Lockheed Martin utilizes its internal database and, under penalty of the

annette ficuceLLo

Assistant Vice President, Supplier Diversity

neW yorK life insurAnce coMPAny
Briefly describe any outreach programs you use to certify potential diverse suppliers: New York Life is an active member of the National Minority Supplier Development Council (NMSDC), the Women’s Business Enterprise National Council (WBENC), and the National Gay and Lesbian Chamber of Commerce (NGLCC). These organizations provide a direct link between their corporate members and the suppliers. They have very strict certification procedures, enabling us to maintain the integrity of our program. How do you monitor and measure the purchasing department’s use of diverse suppliers? Our 2009 spend with

Headquarters: new York City Web site: www.newyorklife.com Primary Business: insurance

diverse suppliers is 8% of our total sourceable spend. We are very proud of this accomplishment and continue to strive to build on this success and improve on these numbers. We have consistently increased our year-over-year spend with diverse businesses since the Supplier Diversity Program’s formal inception in 2002. We have also experienced a dramatic increase in the number of diverse suppliers who are participating in our procurement processes. In 2009, we engaged the services of a data management firm (an MBE) to assist us in more accurately identifying all of our diverse suppliers.
How do you mentor diversity suppliers to support non-traditional areas of the business? This question is best

answered by one of our biggest success stories, Liberty Power Corporation, which is Hispanic-owned. Traditional diverse suppliers are typically small companies, providing products and services like printing and promotional items. At New York Life, we focus on expanding the process to include non-traditional areas. Power contracts are rarely handled by diverse suppliers, however, the deregulation of electricity in New York enabled us to accept bids for our electricity supplier contract; Liberty Power was invited to participate in the bidding process and won. They subsequently won a second contract with New York Life’s Westchester office. It is a partnership that has lasted approximately 7 years.
How do you ensure the continual supply of goods and services from minority suppliers, as well as the trust and confidence of your vendors, customers, employees, and shareholders? In addition to regular communication in employee newsletters and intranet postings, the Supplier Diversity Program meets

regularly with individual departments to emphasize the benefits of working with diverse suppliers—these regular meetings are a good open forum to discuss the program and ways to broaden the use of diverse suppliers, and as a result leads to new opportunities. Externally, representatives from the Supplier Diversity Program regularly attend conferences and networking events, participate on committees, and evaluate advertising opportunities and sponsorships to increase community awareness and outreach efforts. The Supplier Diversity Program is also recognized by industry groups as a top program. PDJ
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