Fortune 500 corporation Cummins designs, manufactures and distributes engines, filtration and power generation products. Through its Diversity Procurement Initiative, its goal was to increase purchasing opportunities for under-represented supplier groups. It recognised traditional sourcing methods were not moving fast enough to increase opportunities, engagement and spend. So it designed an innovation gateway to break down corporate barriers. Using Six Sigma methodology, a cross- functional business team addressed supplier diversity and inclusion, as well as key objectives of reducing water, waste and energy linked to Cummins 2020 environmental targets. A pilot resulted in more than 80% of the 80 plus submissions coming from under- represented groups. Some 26 finalists were selected to pitch, and 12 innovations taken through to test and verification phase in UK sites. Cummins also worked closely with MSDUK and WEConnect to ensure ethnic minority and women owned businesses were represented. Diverse spend has jumped from 12.6% to 30.5% of UK spend and the programme is now rolling out globally.
Judges’ comments: "A strong submission in an increasingly important area for procurement, with good metrics and measurement. This introduction of the innovation portal for suppliers included diversity as an ambition and has seen some good results in the early stages. A “real” approach to supplier diversity."