walgreens Supplier DiverSity initiative

Transcription

1 A G r o w i n G S u c c e S S S t o r y : walgreens Supplier DiverSity initiative AnnuAl report 2009

2 2009 wa l G reen S S upplier D iver S ity initi Ative A nnu A l repor t we have achieved our FY 09 goal of doubling our spending with diverse vendors from the previous year, and are on track to achieve our goal of $1 billion annually by Supplier Diversity: Doing Business With Diverse Vendors is Good Business For Walgreens As part of our commitment to the communities we serve, Walgreens is continuing to expand its supplier diversity initiative, which seeks to purchase goods and services from diverse and small businesses, vendors and service providers. By promoting wider vendor participation, we re helping support the economic base of our communities where we do business. This ultimately strengthens Walgreens business. Our supplier diversity initiative is really a win-win-win: Diverse suppliers and contractors win, because they build their businesses. The communities where our diverse suppliers and contractors are located win, because these businesses spend money in the neighborhoods. Walgreens wins twice! We get quality goods and services from outstanding vendors, and our stores benefit by being located in economically strong cities and towns. The commitment to supplier diversity comes from the top down. Walgreens management is fully committed to supplier diversity, and we believe these practices are crucial to serving a diverse America and maintaining our century-old traditions of fairness, trust and honesty. 3

3 2009 walgreens Supplier DiverSity initiative AnnuAl report walgreen DiverSe SpenD (in MillionS) FiScAl year $600,000 Many governments and large companies $500,000 Sustain the Base 550,000 have supplier diversity requirements, and $400,000 $300,000 $200,000 $100,000 Discover the Base 165, , , ,700 9% growth 33,000 31,300 38,200 40, % growth ,000 99% growth 240, , having our program in place enables us to compete for this business. potential whs (walgreen HeAltH ServiceS) customers WHs responds to government and corporate rfps for the opportunity to become the prescription supplier of choice for these groups employees. many governments and large companies have supplier diversity requirements, and having our program in place enables us to compete for this business. recent WHs rfps with supplier diversity requirements include national corporations, large state and municipal groups and retirement systems, and healthcare organizations, which totaled almost 2.5 million lives. MBe wbe total Diverse Spend Establish Sustain Grow note: overall totals Do not DouBle count, however SpenD is recounted in classification BreakDownS Who Cares About Vendor Diversity? PrOmOting supplier Diversit y is critical to two key WAlgreens AuDiences: FeMAle customers in a recent random national consumer survey of 1,200 women, some 80% of women said knowing that a company had a strong women s business program would build brand equity by a significant amount, and that they would be compelled to try a corporation s products or services if they knew the company had a strong women s business development program. And did you know that if we increase market share among women consumers by just 1%, that equals $433 million in new revenue?* A strong supplier diversity program builds brand equity with multicultural and female consumers. it s good business for Walgreens! *Based on FY 08 revenue. the WAlgreens supplier Diversity initiative HAs AcHieveD such success through A three-step PrOcess: establish the BASe tactical strategies have led to improved tracking and increased spending with diverse suppliers, company wide. All vendors now have direct access on line to register for business opportunities at vendor.walgreens.com/ newvendorsetup SuStAin the BASe How can we get to know our existing diverse vendors and find ways to work with them? When we understand their needs and capabilities, we utilize their services better to meet our goals. Grow the BASe some departments have opportunities to grow diverse vendors within their own departments, or to focus on integrating new diverse suppliers. For others, there are opportunities to grow the vendor across departments within Walgreens overall. to actively grow the base, Walgreens employees are strongly encouraged to sponsor a new or existing vendor that has significant potential to proactively grow within the Walgreens supply chain. supplier diversity is a high level company strategy, and employees understand how their job contributes to its success. 4 5

4 2009 wa l G reen S S upplier D iver S ity initi Ative A nnu A l repor t A First -of-its- Kind Networking Event for Minority and Women-Owned Businesses Our key event this year was a unique business development day held in may by Walgreens and some of its largest pharmaceutical suppliers including AmerisourceBergen, cardinal Health, glaxosmithkline, Johnson & Johnson, merck, Pfizer, teva Pharmaceuticals and Watson Pharmaceuticals. some 120 best-in-class minority business partners were selected to attend the event, held at chicago s navy Pier. The 120 companies represented spanned the professional services, trucking and transportation, distribution and warehousing, construction and printing/advertising industries. each business had delivered high quality services to a sponsoring company in the past, earning a recommendation that could open exciting new doors. What sets this diversity business development model apart from any other is the incredible power of cross networking, said gleatha glispie, Walgreens director of supplier diversity. Division leaders from each sponsoring company spent the majority of the day meeting with dozens of potential vendors. A total of more than minute appointments were set up, and participating vendors had the opportunity to meet face-to-face with key purchasing decision makers. Just one contract from one of the sponsoring companies could increase diversity spend by millions of dollars. Accomplishments from the event report that two sponsors have already awarded three contracts to diversity participants and at least four more contracts will follow in The feedback was so positive that we are already planning next year s event. said glispie, This event is the difference between talking about supplier diversity and actually doing something about it. every sponsor shares a commitment to supporting the economic development of the diverse communities in which we live, work and serve customers and patients every day. Did You Know nearly HAlF of All BuSineSSeS in the u.s. Are owned By MinoritieS or women? More than 50% of walgreens StoreS Are located in 9 StAteS (plus puerto rico) where the Minority population is close to or More than 40%? that increasing MArket SHAre just 1% in these AreAS equals $300 Million in new revenue? walgreens HuMAn resources DepArtMent leads the way, with More than 20% of the DepArtMent S total SpenD with Service vendors GoinG to DiverSe BuSineSSeS in Fy 09? At walgreens, we HAve 460 DiverSe MercHAnDiSinG vendors producing various products For SAle in our StoreS. our SpenD with these vendors is More than $374 Million DollArS AnD it represents over 68% of the DiverSity expenditure in Fy 09. opportunity is just A click AwAy. vendor.walgreens.com/newvendorsetup 6 7

5 online inquiries: Store inquiries: walgreen co. 200 wilmot road DeerFielD, il wAlGreenS