Supplier Diversity expands program by tracking Tier II supplier spend
Supplier diversity has long been a priority in Kellogg’s ED&I agenda. Until this year, Kellogg’s Supplier Diversity program focused primarily on the company’s Tier I spend – purchases made by the company directly from diverse goods and services suppliers.
Kellogg North America (KNA) is increasing its influence and impact by driving ED&I principles deeper into the supply chain. We are doing so by partnering with Tier 1 suppliers to promote and support their supplier diversity initiatives and by tracking Tier II spend – spend with diverse suppliers who sell to our Tier I partners. Supporting Tier II spend isn’t new; however, setting new goals and tracking Tier II spend provides the opportunity for Kellogg to have a more positive and broader economic impact within our communities and with our consumers.
“It’s important that we ask our suppliers, ‘what are you doing to encourage diversity and inclusion within your organization?’” said Debra Q., Supplier Diversity Manager. “And that we give them the opportunity to align with our values and drive mutual growth. We’re trying to give people the tools to be successful.”
Debra and the Global Procurement team have been working to remove any barriers to suppliers seeking to expand diversity in their own company or supply chain. Kellogg suppliers can access a wealth of resources through the company, like an up-to-date calendar featuring diverse networking and educational events, as well as a running Twitter feed from diversity-promoting organizations.
Throughout 2020, Kellogg teams included additional questions in their supplier bid proposals and supplier selection criteria, building upon development and engagement efforts in past years. Both current and potential KNA suppliers are asked to provide details on their supplier diversity programs and their capability to report diversity spend metrics to Kellogg. In 2021, the Supplier Diversity program will continue to expand its reach and impact by incorporating additional goals and tying Tier I and II performance to a supplier’s overall performance rating.
Moving forward, KNA is committed to increasing the number of suppliers in our Tier I program, the percent of our total spend with diverse suppliers and our supplier’s Tier II spend.
Ultimately, the goal of these programs is to create real-world economic impact. “We’re trying to bring more diversity across the entire supply chain, and make sure that it represents and positively impacts the people and communities where we do business, especially historically disadvantaged communities,” Debra said.
“Kellogg goes beyond encouraging their suppliers to have a program. They provide guidance, creative ideas, introductions and best practices to help grow our organization’s D&I impacts. Our supplier diversity program helps the communities we operate in, promotes innovation and increases competitive channels – all of which help our business and our communities be successful.”
“At Cargill, we live and work by our values of putting people first and doing the right thing. The cornerstone of our commitment is creating an inclusive culture where people feel welcome, valued and heard – including our suppliers. This program has influenced how we approach our Tier 2 Program with our suppliers and the discussions we have. We don’t just ask our suppliers to report, we ask them to participate with organizations that support minority and women-owned firms as well as attend matchmaking events to expand their own supply chains. It is important to know your work in this space is more than just an exercise.”
“Respect is essential for earning business and for building mutually beneficial relationships with employees, vendors and customers. As a company, we strive to include all groups whether it be in our hiring or procurement processes. This program has helped us cultivate our own supplier diversity program and it shows that we take inclusion seriously.”
For additional information on Kellogg Supplier Diversity or to register as a potential supplier visit www.kelloggsupplier.com.