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IBM’s commitment to diversity is a key business imperative in all aspects of its business, including its workforce, customer base and supply chain. As a global organisation IBM’s existence and business depends on the willingness of people from many different cultures and backgrounds to work and to buy from them.

Building and maintaining a community of diverse suppliers increases IBM's opportunity to hear new ideas, apply different approaches, and gain access to additional solutions that respond to its customer needs.

Supplier diversity is one of the key procurement measurement areas. IBM maintains a focus on achievement within the programme by tracking progress monthly, and providing feedback to the Executive management team as part of the monthly management system.

As supplier diversity is still a relatively new concept in Europe, the initial challenge was to identify businesses that are able to supply. Typically, small suppliers lack the necessary skills and experience to compete against larger firms.

To overcome  this, IBM worked with outreach organisations, sponsoring events and workshops as well as providing advice and assistance through mentoring programmes to small businesses on topics such as:

  • how to become an approved supplier
  • how to bid for contracts with large organisations
  • working and partnering with IBM

In addition, it was important that the internal buying teams understood the importance of supplier diversity in meeting the needs of its internal and external clients as well as opening up access to a wider market place. A number of workshops were set up to help buyers understand the issues faced by smaller suppliers when competing for work with larger organisations.

Impact

  • In 2000 the IBM Supplier Diversity programme exceeded the $1 billion dollar mark in spend with diverse suppliers and in 2005 IBM had doubled this to $2 billion dollars of spend with diverse suppliers worldwide.
  • The IBM spend with diverse businesses from within Europe Middle East and Africa increased 100% year on year from 2003 to 2004 and a further 20% in 2005.
  • Within the UK & Ireland IBM is currently working with 16 diverse suppliers. These include providers of complimentary workforce services, hardware maintenance services, software, and others.