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October 27, 2021

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IBM is a 2001 BDR charter member

IBM’s commitment to supplier diversity is an initiative pursued with vigilance and zeal; it is an integral part of IBM’s heritage, business plan and, more importantly, its future.” — Tameka Little, Americas program manager, supplier diversity

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: IBM’s ongoing commitment to diversity is underscored by three basic principles — its workforce, customer base and supply chain. IBM’s supplier diversity program is over 50 years old. Building and maintaining a community of diverse suppliers increases IBM’s opportunity to explore innovative ideas, apply different approaches and gain access to additional solutions that respond to customer needs.

IBM’s supplier diversity program timeline at a glance:

• 1968 – Created U.S. supplier diversity program.

• 2000 – First information technology, or IT, company to join BDR.

• 2003 – Program expanded globally and now operates in every country in which IBM conducts business.

• 2006 – Conducted more than $2 billion annually in business with first-tier diverse suppliers globally.

• 2016 – Incorporated second-tier strategic initiatives.

• 2018 – 50-year supplier diversity program celebration.

The supplier diversity program expands purchasing opportunities for businesses owned and operated by minorities, women, gays and lesbians, veterans, service-disabled veterans and disabled persons. Such collaboration helps IBM deliver innovation, quality products and world-class service to a growing global marketplace.

While IBM is proud of its accomplishments, methods to assist with the development, growth and longstanding utilization of qualified diverse-owned businesses are continually assessed. Net: We know that change is a constant, and we’re always seeking innovative processes and practices to improve our program.

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

A: For decades, diversity and inclusion has been a vital topic in global society. IBM’s commitment to diversity is as old as the company itself, therefore, it’s ingrained in our DNA. This commitment is demonstrated in business policies and practices surrounding IBM’s workforce, its customers and suppliers — as well as the marketplace.

IBM has placed billions of dollars of business with its diverse suppliers over the last four decades. By 2000, IBM was purchasing more than $1 billion in first-tier diverse business in the U.S. and became the first IT company to join the ranks of the Billion Dollar Roundtable. IBM continues to spend more than $1 billion annually in the U.S. since that period, and $2 billion, first-tier, worldwide since 2006.

We did not seek to become a member of BDR; IBM is one of the original corporate members. When BDR was created, the central idea was to pass along the knowledge that the members had from a supplier diversity perspective to non-BDR members and help them grow their diversity spend. The more corporations that become members of BDR means that we are having a more direct impact on diverse communities globally. It also means that more corporations are recognizing the value-add that diverse suppliers bring to a corporation’s supply chain.

IBM’s commitment to supplier diversity is an initiative pursued with vigilance and zeal; it is an integral part of IBM’s heritage, business plan and, more importantly, its future. That is the reason that IBM provides opportunities for diverse suppliers to participate within our supply chain in every geographical area in which we operate.

For the reasons above, it seems only natural that IBM is a member of BDR.

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

A: $1 billion annual spend achievement is not an easy task and remaining at the top proves to be more difficult — especially for corporations that are just checking off a box or looking for a feel-good movement. To be a BDR company requires:

• A true commitment to having a diverse supply chain.

• Not aspiring to be a BDR member but aspiring to provide access in every commodity to diverse suppliers. There are no exceptions!

• Providing access to your procurement team, leaders and strategic directors.

• Understanding the value — innovation, technology, responsiveness, etc. — which diverse suppliers bring to your supply chain.

If a company understands these areas, it is a natural progression to be a member of BDR and stay a member. Being a BDR company is about being intentional.

Q:  How has your company benefited from BDR membership?

A: IBM is committed to maintaining an effective partnership with organizations that promote the utilization and development of diverse suppliers globally. BDR is comprised of corporations whose goals for advocating increased corporate supply chain opportunities to diverse businesses aligns with the goals of IBM. Also, BDR is focused on developing best practices and sharing these with other corporations to increase their spend with diverse suppliers.

Iron sharpens iron. Sitting at the table with other top corporations can only strengthen IBM’s arsenal in the fight for diverse businesses growth and success. Sharing supplier diversity best practices and eliminating obstacles in the utilization of diverse suppliers strengthens corporations’ supply chains.

The collaborations between BDR members and qualified minority business enterprises or MBEs enhance IBM’s network connections, support our commitment to supplier diversity and promote continued growth to our already successful supplier diversity program.

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

A: IBM’s award-winning global supplier diversity program expands purchasing opportunities for diverse-owned businesses. At the core of IBM, we understand that the marketplace is the driving force behind everything we do and that our primary measures of success are customer satisfaction and shareholder value. IBM recognizes that supplier diversity adds to our competitive advantage and stimulates growth in a global marketplace.

As such, some best practices are:

1. Corporate leadership: Commitment from your CEO, board and senior executives is critical.

2. Corporate commitment: Supplier diversity is “everyone’s” responsibility and not just the supplier diversity organization.

3. Goals and tracking: Supplier diversity should be a KPI [key performance indicator] where specific goals are developed and tracked.

4. Supplier development: You should have a program that is inclusive and develops diverse suppliers.

5. Expansion: If using diverse suppliers in the U.S. provides value, then your program should be in every country in which the company operates.

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

A: There are multiple ways to engage with IBM, depending on the size and ownership of your company.

Suppliers can register their companies as diverse suppliers in IBM’s Supplier Connection portal at ibm.com/mysupport/s/topic/0TO500000002XcVGAU/supplier-portal?language=en_US. They complete the appropriate registration documents. Potential diverse suppliers are reviewed and identified. Completion of registration does not guarantee future business.

It is IBM’s policy to maintain a certain number of core-predominant technical services suppliers, directing its technical services requirements to those suppliers. Technical services suppliers are encouraged to partner with IBM’s current core suppliers to pursue second-tier opportunities by sending a note requesting “How to become a tier-two supplier to IBM” to [email protected].

The U.S. federal market provides opportunities for small businesses to engage with IBM in a multifaceted approach as subcontractors, as small business primes with IBM as their major subcontractor or as IBM Business Partners reselling IBM solutions to federal agency customers. To learn more, contact ibm.com/partnerworld/public/join.

Diverse suppliers can also reach out to IBM’s supplier diversity program managers supporting their geography and line of business. Suppliers may visit the IBM Global Procurement page at ibm.com/procurement/becomeSupp for more information on becoming an IBM supplier.

IBM supplier diversity program managers participate in various nongovernmental organization conferences and matchmaker events where we can meet MBEs and discuss IBM opportunities and suppliers’ capabilities.

To learn more about IBM’s supplier diversity program, visit IBM.COM/Procurement/supplierdiversity