A Message from the Chief Procurement Officer
Nestlé’s commitment to diversity is real. With over 300,000 employees worldwide and factory locations in more than 85 countries, we truly are a multinational, multicultural company. This is demonstrated in both our internal hiring practices and our supplier relationships and continues to be one source of our competitive advantage in our position as the world’s largest Food Company.
As the Vice President and Chief Procurement Officer of North America Procurement, I am proud to provide supplier diversity leadership to all of the Nestlé operating companies in the United States. We are committed to the development of meaningful and mutually beneficial business relationships with diverse suppliers and recognize the value these relationships add to our Company. We strive to exceed our diversity targets and to provide an environment where all suppliers, including those that meet the requirements of our Supplier Diversity program, are provided with all the information they need to be a strategic business partner.
Having a Supplier Diversity Program makes good business sense. We are investing in the future of our company and in the communities in which we live and work. We thank you for your support in this mission.
The Case for Supplier Diversity
By 2050, the majority of the U.S. population will consist of people from ethnic groups historically referred to as minorities. The 2007 Survey of Business Owners conducted by the U.S. Census Department documented the increasingly diverse U.S. business ownership which mirrors the diversity trends of our population.
The following highlights from this survey support Nestlé’s Commitment to Supplier Diversity:
- In 2007, minority-owned firms numbered 5.8 million, up from 4.0 million in 2002, an increase of 45.5 percent. These businesses generated $860.5 billion in receipts, an increase of 54.3 percent from 2002.
- In 2007, women owned 7.8 million businesses and accounted for 28.7 percent of all businesses nationwide. These firms generated $1.2 trillion in receipts, about 3.9 percent of all business receipts nationwide.
- A study by the Small Business Administration stated that small business are responsible for more that 65% of the jobs created in the private sector over the past 17 years.
- In 2007, there were 117,277 veteran-owned businesses with receipts of $1 million or more and of these 7,446 businesses employed 100 or more people.
A strong Supplier Diversity Program provides Nestlé with:
- A pool of qualified suppliers that understand and support Nestlé’s commitment to excellence
- A pool of qualified suppliers that are directly aligned with underrepresented and emerging communities and can promote positive relationships with our customers
- Increased competition and an extended supply base
- Access to new capabilities and innovations
- A competitive advantage as we seek government contracts, and assurance that we comply with the diversity expectations of our public sector contracts.
Supplier diversity relationships are unique in that they truly benefit both parties. Minority, woman and veteran-owned businesses tend to hire diverse employees and in supporting these businesses, we support a growing segment of our consumer community and gain their loyalty. And by retaining qualified, diverse suppliers, we gain a distinct competitive advantage that can significantly impact our bottom line. Small businesses continue to be the economic engine for adding jobs to today’s labor market.
Read more about our position on diversity.
Strategic Sourcing and Supplier Diversity
In addition to implementing a successful Supplier Diversity Program, North America Procurement is committed to implementing a Strategic Sourcing Initiative. Together, these two programs ensure a winning purchasing strategy.
What is Strategic Sourcing?
Strategic sourcing means just that—we source all of our products strategically. North America Procurement is responsible for selecting only those suppliers who can successfully meet Nestlé’s regional and international needs. With strategic sourcing, Nestlé develops a strong, flexible and competitive supply base, and passes those improvements on to the customers and the consumer. Supplier diversity is an extremely important component of our search to find those suppliers who can best meet Nestlé’s needs.
North America Procurement buys services and products in the following categories:
- Raw Materials
- Capital/Construction and Engineering
- Maintenance, Repair Services and Operations
- Legal and Real Estate
- Human Resources, Security Services and Office Products
- Telecommunications and IT
- Marketing, Printing and Promotions.
North America Procurement Diversity Team
Nestlé’s Supplier Diversity team identifies areas of opportunity to include diverse suppliers in the sourcing process within each of the procurement categories. We identify existing diverse suppliers and assist them in finding ways to expand their access to procurement opportunities. Our team members attend Supplier Diversity outreach events and work on internal projects to develop best practices for improving the outcomes of our targeted diversity activities.
The team also assists in communicating the goals of the program to new suppliers, other employees involved in the buying process and key stakeholders. Our multifaceted process increases our diversity spend and assists in the development of diverse suppliers that support Nestlé's business model.
Becoming A Nestlé Supplier
We highly recommend that you visit our various Nestlé websites to become familiar with our brands and products. This can help you determine how your company can supply Nestlé’s needs. If you are interested in becoming a Nestlé supplier, please start by visiting our eLearning site to gain further insights.
The following organizations are useful resources for certification and other information:
Supplier Diversity Program
Nestlé - North America Procurement
800 N. Brand Blvd.
Glendale, CA 91203