UnitedHealth Group’s supplier diversity demonstrates our commitment to developing a supplier base that reflects the communities and customers we are privileged to serve. Fulfilling this commitment helps drive value creation for our businesses, positively impacts the communities we serve, and allows us to extend our societal impact beyond our members and customers.
Supplier diversity is managed by our ES&P team. Every request for proposal (RFP) managed by the Enterprise Sourcing & Procurement (ES&P) team targets inclusion of at least one diverse supplier, where available. RFPs are evaluated through a balanced scorecard that considers supplier diversity alongside key factors such as cost, quality and service delivery. In addition, supplier diversity objectives are built into the development strategies and the annual performance objectives for all categories managed by the ES&P team.
Our ES&P team works to identify opportunities for certified minority-owned, women-owned, veteran-owned, disability-owned, LGBTQ+-owned and other historically underutilized businesses. We also work with state and local governments, minority business groups and nonprofit organizations to identify sourcing opportunities for diverse suppliers where possible.
We extend our supplier diversity efforts deeper into our supply chain by working with Tier 2 suppliers. Participating suppliers are expected to incorporate supplier diversity into their own sourcing practices. We receive a supplier diversity spending report from each participating supplier on a quarterly basis.
Diverse suppliers played a notable role in supporting our STOP COVID initiative by securing much needed PPE and providing print and fulfillment services, public relations support and temporary labor resources for underserved communities affected by COVID-19.
We developed a pro bono accelerator model to build the capacity of diverse suppliers, with the goal of growing their business with us, as well as other companies. In 2020, we piloted the program with Bracane, a Black- and woman-owned consultancy focused on clinical research in minority populations and health disparities. Through this partnership, Bracane was better positioned to help more clients create an equitable care environment and increase their own revenue growth. We plan to expand this program in 2021 and beyond.
Additionally, over the past two years, we’ve established a Supplier Diversity Ambassador Program, a cross-functional working group of business partners who help to build awareness of the value of supplier diversity and drive greater use of diverse suppliers across our company. Since its inception, the program has helped increase centrally managed spend with diverse suppliers by 10% annually.
Over the past decade, UnitedHealth Group has spent over $3.5 billion with diverse suppliers.
We have conducted an impact assessment of our diverse supplier spending to better understand how our efforts are supporting local communities. This study considers the direct economic impact our spending has on suppliers, the indirect impact our suppliers have on their suppliers and the impact our investments have on the communities where our suppliers operate.
In 2021, we’re excited to host our inaugural Diverse Supplier Summit, at which external partners can learn more about our company and connect with our business and procurement community, as well as our prime suppliers who are also interested in engaging with diverse suppliers.