As a health care company pursuing supplier diversity in an innovative way, CVS Health was inducted into the Billion Dollar Roundtable (BDR), a top-level corporate advocacy organization that promotes supply-chain diversity excellence, in 2017, for reaching its goal of spending over $1 billion with women and minority-owned diverse suppliers. In the last year, CVS Health has reported an economic impact in excess of $5.8 billion with small, minority- and women-owned businesses. The company is evolving better health care paths, promoting superior practices in supply chain diversity and increasing the economic impact and well-being of people, businesses and communities.
Collaborating with more than 246, 000 colleagues across all 50 states, Washington, D.C., Puerto Rico and Brazil, CVS Health focuses on spending power through direct purchases from its diverse supplier base, subsequent purchases from each company’s supply chains, and spending by employees of these companies in a wider economy.
“Through partnerships with diverse suppliers, we believe that we are best able to deliver a wide range of innovative services and products to our diverse customer base. These partnerships also make a significant economic impact in communities across the country,” said Raul Suarez-Rodriguez, manager, Supplier Diversity/ Strategic Procurement.
CVS Health bolsters strategic practices and partnerships as an integral part of their overall business strategy. This comes as no surprise as they’ve earned their seat at the BDR, and this year hosted BDR’s annual Supplier Diversity Summit in Providence, Rhode Island. The company has a visibility to products and services that are being procured with a 90-day advance, purchasing from over 3,200 small and diverse suppliers, while contributing billions and helping to sustain more than 30,000 American jobs.
“We are always looking for innovation solutions, both through products and services, that can cultivate successful opportunities for diverse suppliers,” said Suarez-Rodriguez.
To be eligible to work with CVS Health, the goals of the supplier must align with CVS Health’s, and suppliers must have a full understanding of the company’s mission, vision, objectives and culture.
Setting firm goals, in efforts to identify, nurture and maintain partnerships, in supplier diversity is how CVS Health will continue to excel and build new capabilities while at the BDR. By 2020, the company plans to meet higher expectations by increasing annual spending to a total of $2.5 billion with prime and sub-contracted suppliers. To achieve this goal, the company will build capacity for suppliers and position inclusion through its Pharmacy Benefits Management division, as well as provide a diverse supplier solution to its Retail business.
CVS Health’s supplier diversity has been rewarding for the company. It has added economic value and sustainability for partners, employers and thriving communities. Suarez-Rodriguez reaffirms that relationships are key and encourages “each and every supplier…to be patiently persistent while excelling in his or her capabilities.”