P&G’s Supplier Diversity efforts began in 1976 and began a formal 2nd Tier program in 1996. Since 2007, P&G spends more than $2 billion with diverse-owned businesses every year. Given this high level of achievement P&G is a member of the Billion Dollar Roundtable, a forum of companies spending more than $1 billion annually with diverse suppliers. Below you can find more information about our tracking process, resources to help your company build a Supplier Diversity program, and the councils we partner with to accomplish our goals.
Diverse Supplier Definition
In the US we recognize certified businesses that is at least 51% owned, operated and controlled by a United States citizen who is an ethnic minority, women, LGBTQ+, Veteran or Person with Disability as part of our Supplier Diversity program.
Outside the US, we are now tracking a for-profit business, headquartered outside of the U.S., that is at least 51% owned, operated and controlled by a woman as part of our Global Supplier Diversity program, both 1st and 2nd tier. P&G is also starting to track companies with women leaders, such as CEOs.
Exponential Business Value: A diverse supply network will out-think, out- innovate, and out –perform a non-diverse supply network. Our diverse supplies are more agile, responsive, innovative, more likely to hire a diverse pool of employees and give back to their community.
1st Tier Supply Chains- Growing 1st Tier spend can only be reported when P&G buys directly from diverse-owned companies. We expect these businesses will provide best value to P&G.
2nd Tier Supply Chains - Growing 2nd Tier spending occurs when our non-diverse suppliers purchase from diverse suppliers on our behalf. To help our suppliers develop their own Supplier Diversity program and grow P&G’s 2nd Tier spending, we have developed a Toolkit, which you can download here.
If you want to share P&G’s Supplier Program with your colleagues – please download this document.
If your company is looking to start or grow a Supplier Diversity program, there are several resources available at our Partner’s websites below.
How to do business with P&G? Access the registration page by clicking here.
To learn more about P&G’s Take On Race, please visit our corporate site: https://us.pg.com/take-on-race/