DEARBORN - Just as a diverse workforce enhances business culture, diverse suppliers assist in improving our global supply chain and help to better support the customers we serve. Recognizing the social responsibility of providing opportunities to minority and women-owned businesses, Ford launched the Supplier Diversity Development (SDD) program in 1978. SDD is designed to ensure that businesses of diverse backgrounds have the opportunity to become valued suppliers.
Ford’s supplier diversity initiative includes businesses categorize as Minority-Owned, Women-Owned, Veteran-Owned, and Service-Disabled Veteran-Owned Small Businesses, as well as businesses located in Historically Underutilized Business regions (HUBZone) and Small Disadvantaged Businesses (SDB).
Ford is on track to meet its 2012 goal of sourcing 10 percent of its U.S. production and nonproduction purchases with diverse suppliers. The company also is strengthening its support of veterans by announcing its goal to source at least 3 percent from veteran-owned suppliers and requiring tier-one suppliers to do the same. Collaborating with a diverse supplier base enhances Ford’s competitive advantage by expanding access to a broad selection of qualified suppliers globally.
Ford has spent $45 billion in goods and services with diverse suppliers since 1998.
In 2011, Ford purchased $5.08 billion in goods and services from its tier-one minority-owned businesses (MBEs), a 34 percent increase from $3.8 billion in 2010. Ford purchased $1.06 billion from its tier-one women-owned businesses (WBEs), an increase of 22 percent from $866 million in 2010. The increases reflect higher vehicle production and incremental new business of $661 million for existing diverse suppliers.
Last year, Ford set a new company record in the U.S. by sourcing more than $5 billion with minority-owned companies and $1 billion with women-owned firm, exceeding its goal of sourcing 10 percent of its U.S. production and nonproduction purchases with diverse suppliers.
Ford’s Supplier Diversity Development efforts were recently recognized by the National Minority Supplier Development Council (NMSDC) when they honored Ford as the 2012 Corporation of the Year. The award recognizes Ford’s pledge to economically empowering minority, women and veteran-owned businesses and job creation. It was the fourth time in nearly 25 years that the automaker won the honor.
Ford’s supplier diversity efforts have also been recognized with other numerous awards, including:
• 2012 Michigan Minority Supplier Development Council (MMSDC) Corporation of the Year
• 2011 Women Business Enterprise National Council Top Corporation for Women
• 2011 Automotive New Suppliers’ Choice Award
• Black Enterprise Magazine: 40 Best Companies for Diversity
• On Wheels: Urban Wheels Company of the Year
• Black EOE Journal: Top 100 Supplier Diversity Programs for African-Americans
• Diversity Plus Magazine: Top 30 Champions of Diversity
• Diversity Inc. Magazine: Top 10 Best Companies for Supplier Diversity
Ford’s supplier diversity initiative is committed to building a portfolio of contracted products and services that echoes the demographics of the communities we serve.