P&G’s Multi-Billion Dollar Diverse Procurement Programme

Why Procter & Gamble’s multi-billion dollar diverse procurement programme gives it a competitive advantage

Procter & Gamble (P&G) is known for its commitment to supplier diversity and inclusion, which is an integral part of its overall procurement strategy. P&G's diverse procurement strategy has now grown to a multi-billion dollar spend and focuses on fostering relationships with suppliers from various backgrounds, including minority-owned, women-owned, veteran-owned, LGBTQ+-owned, and small businesses. 

The mentality behind the programme is that when its supplier ecosystem reflects the diversity of its consumers, the business grows and the communities in which it lives and operates thrive. As supplier diversity expands, the company considers it as a competitive advantage as it matches its commitment to economic empowerment across its whole supply chain.  

P&G Brands (Credit: P&G)

P&G diverse procurement targets

The company significantly increased its global spending target with diverse-owned and women-led business from a previous figure of $3 billion to $5 billion annually by 2030. In the fiscal year 20/21 the company surpassed $3 billion in diverse procurement spending for the first time.  

“For more than 40 years, the company has had a progressive supplier diversity strategy, resulting in more than $2B per year of spend with diverse suppliers every year since 2008,” said Ana Elena Marziano, Chief Purchasing Officer

To help the business meet the $5 billion goal, P&G is working to add diverse companies to its supply base and help suppliers diversify their own supply and procurement networks in the United States.  This strategy has included improving its sourcing systems to make it easier for procurement to identify diverse suppliers, and working with leaders in the business to establish specific plans and targets in the area.  

Global diverse spending strategies at P&G

The programme to develop diverse procurement at the company is developing around the world, with specific strategies being put into action in different regions.  In 2022 it announced new commitments aimed toward advancing Equality & Inclusion across Asia Pacific, the Middle East, and Africa, at its fourth annual #WeSeeEqual summit for the region.  

It committed to spending a cumulative total of $300 million by working with women-owned and women-led businesses across the Asia Pacific, Middle East, and Africa region, from the year 2021 to 2025. 

"At P&G, we remain fully committed to creating a world where equal access and opportunity to learn, grow, succeed, and thrive are available to everyone,” said  We believe in the power of our differences and the impact we can make when we come together, united by our shared values and purpose. We are making great progress, yet we know there is more work to be done. So we are announcing bold new commitments and expanding existing actions which will enable us to do more. We will continue to use the voice of our company and our brands in forums such as #WeSeeEqual to drive discussion and actions on the issues that matter," said then P&G President for Asia Pacific, Middle East, and Africa, Magesvaran Suranjan

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