supplier diversity
TRANSCRIPT
SUPPLIER DIVERSITY2015 STRATEGY REPORT
Supplier Diversity OverviewReaching out to organizations that meet and support supplier diversity remains a proactive business process at Cleveland Clinic.
Our Supplier Diversity strategy supports our commitment to care for the communities we serve. It allows us to leverage our purchasing to drive economic inclusion for qualified diverse suppliers.
In 2015, we saw a deepening of our supplier diversity strategy. An update to our vendor handbook – which all suppliers are contractually obligated to follow – now includes explicit expectations of diverse spend by our suppliers at the Tier 2 level.
As well, we simplified our reporting of diverse spend, thus opening up more categories to inclusion in our efforts to grow a more diverse supplier base. In addition to working to create more opportunity for minority-, women-, and veteran-owned firms, in 2015, we added HUBZone and LGBT-owned businesses to our focus.
Our construction mentor-protégé program completed its second year of pairing promising minority-owned construction man-agement and design firms with larger mentor firms. We are partnering to grow the capacity and experience within healthcare of the minority firms over time and have seen several success stories from this effort. We continue efforts to build a strong diverse supplier pipeline in construction through set-aside bidding and the introduction in 2015 of Job Order Contracting.
Going forward, we will continue efforts to get more of our suppliers to engage diverse suppliers at the Tier 2 level, to utilize specialized programming to aid in the development of our supplier base, and to introduce more innovation from diverse sup-pliers into our procurement environment.
William “Bill” PeacockChief of Operations
Cleveland Clinic
We are committed to growing our supplier diversity program and that commitment
comes from the top. Supplier Diversity is a key initiative, strategically interwoven into the fabric of our business. Each step we
take towards engaging the very best ideas and solutions from our suppliers maximizes our ability to enhance our care model and
drive our vision.
Engaging Diverse SuppliersCleveland Clinic actively participates in conferences and networking events hosted by diverse business development councils.
2015 Participation: • Ohio Minority Supplier Development Council (OMSDC) Supplier Diversity Exchange (Cleveland) • SBA Matchmaking Event (Cleveland) • Presented at ORV-WBC luncheon for women business owners • Northeast Ohio Hispanic Chamber of Commerce Opportunity Expo (Cleveland) • National Minority Supplier Development Council Conference (San Diego)
Planned Participation for 2016: • Ohio Minority Supplier Development Council Ohio Business Opportunity Fair (Columbus, Ohio) • OMSDC Supplier Diversity Exchange (Cleveland) • SBA Matchmaking Event (Cleveland) • Northeast Ohio Hispanic Chamber of Commerce Opportunity Expo • WBENC Summit & Salute (Phoenix) • National Minority Supplier Development Council (Chicago) • Diversity Alliance for Science East Coast Conference (New Jersey)
Organization Activities: • Member, Ohio Minority Supplier Development Council Board of Directors • Member, OMSDC Cleveland Local Advisory Committee • Member, Greater Cleveland Partnership, Construction Diversity and Inclusion Committee, Owners Sub-Committee • Member, Ohio River Valley Women’s Business Council Steering Committee • Attendee, Commission on Economic Inclusion Chief Procurement Officers Roundtable • Member, Minority Business Growth and Development Committee, MBDA Cleveland • Member, Vizient Supplier Diversity Advisory Council • Member, Greater University Circle Initiative Buy Local/Hire Local Committees
Supplier Development:Cleveland Clinic held a supplier development event for existing certified, diverse suppliers on November 24, 2015.
Featured presentations included: • Industry trends and market pressures driving healthcare delivery
• Cleveland Clinic procurement strategy• Diversity in construction
The event also featured a panel discussion with sourcing and construction leadership, as well as a networking session with suppliers, Cleveland Clinic staff and area business development organizations.
Tier 1: $56MTier 2: $44M
44% 56%
2015 Total Diverse SpendIn 2015, Cleveland Clinic saw its total diverse spend reach the $100M mark for the second time in the last six years.
In fact, Cleveland Clinic has generated at least $84M in diverse spend each year since 2010.
$558MSince 2010, we’ve spent over $558M with certified diverse suppliers.
= $100M= $90M
2013:
2015: 2014:
2012:2011: 2010:
= $95M= $84M
= $101M= $88M
Total Diverse Spend (since 2010)
Diversity Spend by Classification
In 2015, we contracted with 287 diverse businesses
covering 73 service and product categories.
Tier 1 Spend
Tier 2 Spend
MBE: $19MWBE: $36MVBE: $755K
MBE: $15MWBE: $28MVBE: $960K
34%
65%
1%
35%
63%
2%
AwardsOMSDC Class II Corporation of the Year
For the second-consecutive year, Cleveland Clinic has been honored as the Class II Corporation of the Year by the Ohio Minority Supplier Development Council (OMS-DC) for its commitment to supporting minority business enterprises (MBE) in Ohio.
The honor is awarded to organizations based on revenue class, with Cleveland Clinic earning the Class II award (for organizations between $3 billion and $11.99 billion in annual revenue).
This award reflects Cleveland Clinic’s commitment to supplier diversity and economic inclusion, and our signif-icant efforts to provide equal access to potential oppor-tunities among businesses owned by women, minorities and veterans.
Tier 2 ProgramWe would like to thank all of our participating suppliers comprising our Tier 2 Reporting program. We gratefully acknowledge the following firms for their commitment to
doing business with diverse suppliers:
Become a VendorCleveland Clinic has a long-standing commitment to serving local needs by attracting, supporting and partnering with diverse business enterprises. Our supplier diversity program and procurement process supports this commitment by identifying and working with qualified diverse suppliers to increase their participation in Cleveland Clinic’s procurement opportunities.
To facilitate this process, our online supplier registration tool will identify and register potential suppliers.
Visit my.clevelandclinic.org/supplierdiversity and click on “Diverse Supplier Registration” to register.
Registering as a supplier does not automatically place your company on a “bidder’s list,” constitute approval of your firm as a Cleveland Clinic supplier, or obligate Cleveland Clinic to solicit a request for quotation. It does, however, allow us to better understand your firm’s capabilities and experience.
ProspectiveSupplier Registration Information
Gathering Evaluation QualifiedSupplier
Decision to becomea partner
Registration inonline supplier
portal
Supplier submittal of proposed
products/services
Supplier evaluation by sourcing teams against our needs
and potential engagement
Supplier qualified and added to bidding
list
We believe that one of the keys to innovation is diversity. Our value to care extends to our supplier diversity strategy by keeping patients at the center of our thinking and business goals. Partnering with a diverse variety of suppliers provides us with new insights and allows us to have a greater impact on
the overall patient experience.
Simrit SanduExecutive Director, Supply Chain ManagementCleveland Clinic
Supplier Diversity
clevelandclinic.org/supplierdiversity
Hermione MaloneSenior Director, Workforce Readiness &
Supplier Diversity216.448.0407
Kumi LaneProject Manager, Supplier Diversity
For more information on Cleveland Clinic’s Supplier Diversity
strategy, please contact us: