MBN USA

October 26, 2021

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Ford is a 2001 BDR charter member

“Ford is proud of the achievements of our supplier diversity and inclusion program. We recognize that this [dedication] is a never-ending journey, and we remain committed to working together with our supplier partners to deliver great products, strong businesses and a better world.” — Travis Spencer, head, supplier diversity and inclusion

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

A: 1968.

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

A: Ford Motor Co. is very proud of the strength, longevity and growth of our supplier diversity and inclusion program.

In 1968, Ford started its Inner-City Supplier Development Program to respond to civil unrest in major cities. Since then, and over the past 53 years, the company has served minority-, women-, veteran-, disabled- and service-disabled veteran-owned businesses and small businesses, along with businesses in historically underutilized business regions, or HUB Zone, and lesbian, gay, bisexual and transgender- or LBGT-owned businesses.

Ford’s dedication and commitment to develop and maintain a diverse supply base was established decades ago and will continue for decades to come. Ford is proud of the achievements of our supplier diversity and inclusion program. We recognize that this [dedication] is a never-ending journey, and we remain committed to working together with our supplier partners to deliver great products, strong businesses and a better world.

Ford’s supplier diversity and inclusion timeline:

• 1968 – Begins an Inner-City Supplier Development Program.

• 1976 – Creates Minority Supplier Development Department.

• 1978 – Begins Supplier Diversity and Inclusion or SDI Program, one of the first supplier diversity programs in the United States.

• 1988 – Wins National Minority Supplier Development Council Corporation of the Year for the first time.

• 1997 – Becomes founding member of  Women’s Business Enterprise National Council.

• 1999 – Begins Tier II Program.

• 2005 – SDI Program expands to include women-owned businesses.

• 2013 – SDI Program expands to include veteran-owned businesses.

• 2017 – SDI Program expands to include Canadian Aboriginal-owned businesses.

• 2018 – SDI Program expands to include LGBT- and disability-owned businesses.

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

A: Ford’s annual goal is to source more than 15% of its U.S. production and indirect business with certified minority business enterprises, or MBEs; women’s business enterprises, or WBEs; and veteran-owned business enterprises, or VBEs, along with LGBTQ- and disabled-owned businesses and small businesses.

This [goal] equates to billions of dollars spent annually with diverse-owned businesses. Ford felt it was important to join other organizations who also take supplier diversity and inclusion initiatives seriously. The company believes there is strength in numbers in this space to advance the overall vision and mission. It also believes that being an active member in various organizations is truly a way to drive and ensure synergies across our strategic priorities and objectives.

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

A: Ford believes a well-rounded supplier diversity and inclusion program goes beyond spend. An organization interested in becoming a member of BDR should take this point into consideration.

The four pillars that are continually evaluated by Ford are as follows:

• Spend: The company’s current goal is to spend at minimum 15% of our total spend with diverse businesses, with a long-term goal and plan to achieve 20% in diverse spend by 2030.

• Advocacy group engagement: Ford is actively involved with advocacy groups to find and develop diverse-owned businesses.

• Workforce diversity: A diverse workforce is important — within the supplier diversity and inclusion team, throughout the entire company and throughout our supplier partners. Diverse perspectives lead to innovative ideas.

• Community outreach – At Ford, giving back to the communities in which we operate is part of our DNA.

All of these are important for an organization to be a successful BDR company.

Q: How has your company benefited from BDR membership?

A: • Introductions and benchmarking activities with other BDR members throughout various industries.

• Introductions to diverse suppliers.

• Participation in innovative supplier- diversity and inclusion conferences and events — Circles of Success.

• Networking and relationship-building among very influential figures in the supplier diversity arena.

• Serving as BDR member and governance committee member (represented by Travis Spencer), we have direct influence on what’s considered “best in class.”

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

A: • Include a diverse supplier in every

[request for quote or]. If one is not included, rationale should be provided on the organization’s sourcing recommendation form.

• Incorporate supplier diversity and inclusivity language in purchasing terms and conditions.

• Establish supplier diversity and inclusion advocates throughout the purchasing organization and cross-functional teams.

• Establish a global supplier diversity and inclusion program.

• Establish a strategic opportunity commodity list. Target these commodities when searching for diverse suppliers at matchmaker events and trade fairs.

• Actively lead and fully participate in development programs for diverse suppliers.

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

A:

• Register in Ford’s supplier and diversity inclusion portal: fordsupplierdiversity.com.

• Do your homework on:

- The industry.

- The specific company.

- What are its values?

- What is its core competence?

- What is its manufacturing footprint and strategy?

- What does it take to be a competitive player?

- How does your organization fit? What makes your product/service unique? Define how your organization will add value!

- What are the company’s needs that could potentially be fulfilled by your business? How will your company add value?

• Be very intentional about who you speak to and why.

• Be patient and understand that doing business with a large corporation can take time; it is OK to start with a small contract!

• Be open for coaching and mentoring; be prepared to adapt to the feedback provided.

• Don’t give up!

To learn more about Ford’s supplier diversity program, visit fordsupplierdiversity.com.