MBN USA

October 26, 2021

UnFollow View Profile Send Message Copy Link

UnFollow View Profile Send Message Copy Link

CVS joined BDR in 2017

“Including diverse suppliers in any supply chain generates competition among incumbents and paves the way for diverse suppliers that otherwise might not have been invited to the party.” — Monette Knapik, senior director, enterprise procurement

Q: When did your company begin its supplier diversity program?

A: 2000.

Q: Can you tell us a bit about your supplier diversity program history?

A: Supplier diversity is critical to our business. At CVS Health, we’re committed to building on the program’s success in creating jobs and increasing economic opportunities for the people and local businesses in the communities CVS Health serves. We’re focused on sourcing products from diverse businesses by connecting, engaging and networking with diverse suppliers, advocacy organizations and corporate partners.

CVS Health’s Supplier Diversity program includes Tier I and Tier II reporting, one-on-one matchmaking meetings and our educational Supplier Diversity Series, as well as our growth and development programs that include our Executive Learning Series, Supplier Diversity in Merchandising and Business Building Events. Various departments within our enterprise contain Supplier Diversity Champions who are committed to supporting our program.

CVS Health works with national organizations to identify and develop diverse businesses. By working with business units across the company to integrate supplier diversity into procurement activities, CVS Health can continue to expand business opportunities for these diverse businesses. One of our primary means of recruiting and identifying diverse suppliers is through active participation and membership with national, regional and local recognized advocacy groups such as NMSDC [National Minority Supplier Development Council Inc.], WBENC [Women’s Business Enterprise National Council], Disability:IN, NGLCC [National LGBT Chamber of Commerce] and many others.

Q: Why did your company decide to become a BDR member?

A: CVS Health’s membership with the Billion Dollar Roundtable allows for collaboration, innovation and best-practice sharing with a prestigious group of fellow corporate members. Continued development in and communication of supplier diversity trends, process development and benchmarking in excellence, ultimately, benefits everyone — companies and consumers.

BDR membership holds us accountable for our Tier I spend with minority- and women-owned businesses through annual audits and verifications. It also provides the opportunity to participate in BDR exclusive subcommittees e.g., BDR Triad, and share the exceptional diverse suppliers who serve our cohorts.

Q: Besides having a $1 billion annual spend with diverse suppliers, what does it take to be a BDR company?

A: CVS Health views supplier diversity as a holistic, internal and external partnership and is consistently looking for ways to expand and educate through a variety of programs and initiatives.

Collaboration is a key tenet. We encourage and embrace diverse perspectives from internal and external voices, different lines of business, strategic partners, existing and potential diverse suppliers and representatives from national minority councils.

Q: What are some best practices or lessons learned you can share with companies striving to reach the $1 billion diverse spend mark? Q: What are some best practices or lessons learned you can share with companies striving to reach the $1 billion diverse spend mark?

A: CVS Health’s commitment to supplier diversity is publicly outlined in its annual Supplier Diversity Impact and corporate social responsibility reports. These public statements help hold us accountable for our programs and maintain a holistic approach to supplier diversity within the company.

Some advice we would offer to other supplier diversity professionals wanting to achieve optimum success in the supplier diversity arena is to:

• Maintain a robust supplier diversity website that provides your overall mission, plus easy access to company supplier diversity contacts and your diverse-

supplier registration portal.

• Build relationships with diverse suppliers and departments [within] your organization, as well as external organizations, such as national advocacy councils.

• Collaborate internally with your procurement organization and, more specifically, your sourcing department.

• Track and report supplier diversity performance and create metrics that bring value to your program and others.

• Provide educational and developmental programs for diverse suppliers and develop programs that connect diverse suppliers with decision-makers.

• Ensure supplier diversity is valued by everyone within your organization.

Q: What advice do you have for MBEs interested in doing business with your company?

A:  I would recommend researching the company and its services and products ahead of time. Know what makes you and your company unique and the benefits you provide and aim to highlight those unique value propositions. Do not try to be all things to all people; develop and highlight your brand and come prepared to answer questions.

Know that we actively monitor our supplier diversity mailbox at [email protected] and are mindful of what opportunities are currently open within the company.

Whether or not an opportunity is currently open within your space, we recommend signing up at our supplier diversity portal. Note that this tool is actively used to search for diverse suppliers to bring to our sourcing and merchandising leads. Be sure that your profile is fully complete with the required information.

While we may not be able to set up a time to meet with every supplier interested in working with CVS Health, know we actively utilize our diverse supplier database for new prospects.

Q:  What’s your vision for the future of minority business development and supply chain diversity?

A: The benefits of working with diverse suppliers goes well beyond CVS Health. Supplier diversity is driving growth and consumer decision-making in such a way that it is becoming imperative for companies to embrace supplier diversity to remain relevant. The inclusion of diverse suppliers benefits the overall economy and varying communities across the board.

Diverse suppliers provide outstanding service and effective solutions in helping CVS Health achieve our company mission to “improve the lives of those we serve by making innovative and high-quality health and pharmacy services safe, affordable and easy to access.” We recognize that this program is essential to the continued growth, development and success of our company.

Adding diverse suppliers to our supplier pool not only increases our overall supplier options but allows room for suppliers with innovative products/services or innovative ways of delivering those products/services. These solutions are fueled by unique backgrounds, perspectives and expertise which, in turn, develop into solutions that we can utilize in our business. In this sense, CVS Health can quickly transition business to and from suppliers when faced with challenges, such as performance or service issues.

Including diverse suppliers in any supply chain generates competition among incumbents and paves the way for diverse suppliers that otherwise might not have been invited to the party.

To learn more about CVS Health’s supplier diversity program, visit cvshealth.com/about-cvs-health/diversity/supplier-diversity.