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Community : Commitment to Supplier Diversity

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Nestlé USA brands

Introduction

Nestlé is committed to establishing and growing successful business relationships with increasing numbers of qualified and certified minority, woman and veteran-owned suppliers as well as those businesses that are Federally defined as a Small Business or located in Historically Underutilized Business Zones (HUBZones). Fulfilling this commitment is important to our customers, our increasingly diverse consumer base, the communities in which we operate and ultimately, to the success of our company.

A Message from the President
The Case for Supplier Diversity
Strategic Sourcing and Supplier Diversity
Becoming A Nestlé Supplier

A Message from the President

Tom Smith

President
Nestlé Business Services,
North America

When we say that Nestlé is committed to diversity, we aren’t just paying lip service to a business ideal. With over 265,000 employees worldwide and factory locations in more than 85 countries, Nestlé is a truly multinational, multicultural company. We believe in diversity in both our internal hiring practices and our supplier relationships, because diversity is one source of our competitive advantage.

As the President of Nestlé Business Services (NBS) North America, I provide supplier diversity leadership to all of the Nestlé operating companies in the United States. At NBS, we are committed to the development of meaningful and mutually beneficial business relationships with diverse suppliers. Because these relationships add value to our company, we strive to exceed the diversity targets that we set for ourselves. 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.

The Case for Supplier Diversity

By 2050, the majority of the U.S. population will consist of people from ethnic groups that are currently considered minorities. Certified minority-owned businesses are experiencing similar growth. According to the Survey of Business Owners, in 2002, women owned six and a half million or 28.2 percent of non-farm U.S. firms. Between 1997 and 2002, the number of women-owned firms overall increased by 19.8 percent. The number of Black-owned firms experienced the highest growth between 1997 and 2002 with a 45.4 percent increase. These changes represent major shifts in Nestlé’s consumer base and supplier pool.

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
Better quality goods and services at a lower price as a result of 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 are in compliance with the diversity expectations of our public sector contracts.

Supplier diversity relationships are unique in that they truly benefit both parties. The diverse suppliers that we do business with are also our customers. 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.

Read more about our position on diversity.

Strategic Sourcing and Supplier Diversity

The Nestlé Business Services North America Diversity Team currently supports the following North American operating companies:

Nestlé USA
Nestlé Nutrition
Nestlé Purina PetCare Company
Nestlé Waters North America
Dreyer’s Grand Ice Cream.

In addition to implementing a successful Supplier Diversity Program, Nestlé Business Services North America 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. The Purchasing Division of Nestlé Business Services North America is responsible for selecting only those suppliers who can successfully meet Nestlé’s regional and international needs. With strategic sourcing, Nestlé can develop a strong, flexible and competitive supply base, and pass those improvements on to the customer. Supplier diversity is an extremely important component of our search to find those suppliers who can best meet Nestlé’s needs.

The Purchasing Division buys services and products in the following categories:

Packaging
Ingredients
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.

The Nestlé Business Services North America Diversity Team
Diversity Team representatives from each purchasing category continuously review the list of diverse suppliers in their areas. They identify those suppliers who can do more business with Nestlé and introduce them to the operating companies that could work with them. This process increases our diversity spend and assists in the development of diverse suppliers that support Nestlé's business model.

Becoming A Nestlé Supplier

“We believe that diverse companies and their talent and ideas are crucial to a successful innovation effort. They tie us more closely to our customers and help us better understand their wants and needs, they bring an entrepreneurial spirit to the job and they use existing resources in new and creative ways. We remain committed to developing relationships with qualified suppliers who understand and support Nestlé’s commitment to excellence and innovation, and to delivering value through creative solutions, best-in-class practices and sound business strategies.”

Kevin Petrie

Chief Purchasing Officer
Nestlé Business Services
North America

We highly recommend that you visit our various Nestlé Web sites 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 register here.

The following organizations are useful resources for certification and other information:

National Minority Supplier Development Council, Inc., www.nmsdc.org

United States Small Business Administration, www.sba.gov

Women’s Business Enterprise National Council, www.wbenc.org

Multicultural Foodservice and Hospitality Alliance, www.mfha.net

City of Los Angeles Business Solutions, www.business.lacity.org

Contact Info
Supplier Diversity Program
Nestlé Business Services North America
800 N. Brand Blvd.
Glendale, CA 91203
Phone: 818-549-6000
Fax: 818-553-3547
E-mail: supplierdiversity@us.nestle.com