MBN USA

October 28, 2021

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Kroger joined BDR in 2007

“The consistent development of suppliers is essential for sustainable growth. Companies need to be committed to help their diverse suppliers with access, development, growth and, ultimately, the goal should be to see them thrive.” — Angel Colón, senior director, diversity & inclusion, multicultural development and supplier inclusion

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

A: 30-plus years ago.

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

A: The Kroger supplier diversity program consists of more than 1,300 diverse vendors, and it is represented by African American, Asian, Hispanic, Native American, veteran, veteran-disabled and disabled — along with lesbian, gay, bisexual and transgender, or LGBTQ. Kroger has a Tier I and Tier II program, and the main source of its Tier I spend comes from food and health and beauty care suppliers. The company also focuses its spend with non-direct suppliers in areas such as marketing, legal, construction and transportation, among others.

Kroger became part of BDR in 2007 under the leadership of Denise Thomas [director, corporate supplier diversity]. Under her leadership, Kroger experienced consistent growth in spend and vendors. The program has experienced double-digit growth each of the last four years and surpassed $4 billion for the first time in 2020. In 2020, the company made a commitment to reach $10 billion in diverse supplier spend by 2030. Today, our diverse suppliers employ over 26,000 people and exceed over $1 billion in wages.

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

A: BDR provides Kroger with the opportunity to learn best practices from great thought leaders in supplier diversity. Furthermore, BDR gives access to strategic sessions to further develop supplier diversity programs. Lastly, it recognizes annually the great work of our company’s associates to consistently reach $1 billion over the last 13 years.

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

A: To become a BDR company, it takes:

1. Support and commitment from senior leaders and all the company’s leaders. Their support is essential for the sustainability and direction of the program.

2. The decision-makers and key company stakeholders need to see the value of supplier diversity.

a. They must see diverse suppliers as innovators and contributors to the growth of their business.

b. Diverse suppliers are an engine of growth and help diversify the supply chain to represent the communities they serve.

c. Supplier diversity brings economic empowerment to the communities of the diverse suppliers by generating jobs and wages.

3. Supplier diversity needs to be integrated as part of the overall business strategy. It must be embedded in every fiber of the business and not treated as a separate function.

4. The consistent development of suppliers is essential for sustainable growth. Companies need to be committed to help their diverse suppliers with access, development, growth and, ultimately, the goal should be to see them thrive.

5. Accountability and the reporting of business results must be a foundational step in the progress of the program.

6. Networking and learning from other supplier diversity practitioners or companies is essential to enhancing your business knowledge and practices.

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

A: Lessons learned:

1. Your supplier inclusion program will accelerate when it is embedded as a total company business strategy.

2. Your company employees must understand why supplier diversity is important. Ensure the economic impact/empowerment message is understood by key stakeholders and decision-makers.

3. Results, results, results. Share your results to the entire corporation, key stakeholders and departments. Consistently exchange ideas with your departments to generate growth and address opportunities.

4. Align program’s message with your marketing and corporate affairs teams to ensure customers understand the importance of supplier diversity to your corporation and to create awareness of your diverse suppliers.

5. Development of the diverse suppliers is critical to the sustainability of the program.

6. Learn from your setbacks, continuously engage with your stakeholders and be a relentless advocate for your diverse suppliers. Perseverance and resilience will pay off in the long term.

Q: What advice would you give to corporations that would like to become BDR members?

A: I would advise that everything in supplier diversity starts with the commitment and support of the company’s senior leaders. Assess your company and identify immediate short-term opportunities and establish long-term goals. Develop trust and genuine relationships with your company’s decision-makers. Keep key stakeholders informed of your progress and opportunities and ensure decisions are made with a balance of data, insights and industry knowledge.

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

A: We have created a small business resource guide for potential retail suppliers [at: thekrogerco.com/wp-content/uploads/2021/03/AAPI-Allyship-Guide_v3.2-External-merged.pdf]. The guide provides key information to diverse suppliers that want to succeed in the retail industry.

To learn more about Kroger, visit thekrogerco.com/vendors-suppliers/supplier-inclusion.