Supplier Diversity Why is it important? Kristine Martin Supplier Diversity

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1 Supplier Diversity Why is it important? Kristine Martin Supplier Diversity

2 AGENDA Diversity & Inclusion The Importance of Supplier Diversity Sodexo s Program Supplier Diversity 101 Metrics we track 2

3 Sodexo: Overall Keys to Success CEO and senior leadership commitment CEO and executive commitment drive diversity through each of our Business Units Diversity Leadership Council provides oversight of diversity strategy and progress Top down, bottom up, middle out strategy Distributed leadership Continuous evaluation of our demographics, programs and initiatives Ongoing benchmarking with others to incorporate best practices Linkage with Sodexo s business case Diversity has been leveraged for the success of our business through retention of clients and business development; impact on clients Understanding customer needs Measurement and accountability Promotion ratios for women and minorities have consistently increased Management is held accountable to scorecard results through incentives

4 Recognized as a Global D&I Leader DiversityInc #2 Diversity Councils (#2) Mentoring (#2) Global Diversity (#3) Recruitment (#7) Profiles in Diversity Journal Diversity Leader Award Innovations in Diversity

5 Why is Supplier Diversity Important? Diverse and Inclusive Culture Supplier Diversity Programs Reaping Rewards

6 6 Business Case for Supplier Diversity Economic Power

7 Supplier Diversity and Economic Viability

8 Demographic Impact 8 Title of document or activity name Month XX, 2012 View Menu > Header and footer

9 Los Angeles County Diverse Population

10 Woman Owned Business Impact 8.6M $1.3T 7.8M 8.6 million women-owned businesses in the United States $1.3 trillion In revenues which equals 11% of US revenue Employing nearly 7.8 million people which equals 14% of US employment Information taken from WBENC's Join Forces. Succeed Together

11 Demographic Impact - Purchasing Decisions Women account for the majority of purchasing decisions in the following categories: 91% of new homes 66% of personal computers 65% of new cars 89% of bank accounts 92% of vacations 93% of OTC pharmaceuticals 80% of health care 93% of food Information taken from WBENC's Join Forces. Succeed Together

12 Sodexo s Business Case for Using Diverse Vendors Provide a competitive advantage in RFPs and with current client s supplier diversity programs Support the local vendors in the community Provide the authentic products our customer want Are able to adapt to our needs quickly

13 13 Our Program

14 SUPPLIER DIVERSITY Outreach/ Recognition internally and externally Continuous Improvement/ Supplier Development Top Management Commitment Supplier Diversityintegrated within our business Company Wide Commitment and Accountability Linked to Strategic Sourcing Measurement of Progress and ROI Resources and Matrix Support

15 What is a Diverse Vendor? Minority- owned Women-owned Disabled- owned Veteran-owned LGBT owned (Lesbian, Gay, Bisexual, Transgender) Disabled Veteran- owned 51% owned & controlled Requirements US Citizen 3 rd Party Certification

16 16 Metrics we track

17 Spend Metrics FY 2014 utilizing over 1298 diverse vendors $773M In purchases from Diverse and Small businesses totaling over 18.7% of total spend (no double counting) 22% Increase in Diverse spend over FY % Increase in 2 nd Tier Spend. Additionally supported 44 manufacturers in establishing a Supplier Diversity Program 11 Awards received for Sodexo Supplier Diversity Program

18 Supported Client Diversity Efforts $396M Client First Tier Spend (client self pay, Entegra clients, Corporate Service and Gov t Clients pay the invoices) 46% increase over FY Clients Reported Direct and Indirect Second Tier Reporting to Clients, quarterly or annually Over $491.4M in Sales Provided supplier diversity plans as part of the RFP process for current and potential clients 54 Clients Assisted our Clients with their Supplier Diversity efforts through benchmarking, training and/or identifying diverse vendors 18

19 Any questions? THANK YOU

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