For years Corporate America has been making some serious strides in its effort to connect with the growing Hispanic population. Companies have already seen the benefits that tailoring their products to the specific consumer needs of the Latino community, not to mention the benefits that increasing its overall employee diversity, has had on their profits. However, recent findings suggest that supplier diversity remains an area where significant improvements could be made if Corporate America is to remain competitive in the changing economy. Many companies are starting to recognize that much like overall employee diversity, supplier diversity is also a business necessity which allows large firms and small businesses alike to grow their consumer base, develop community relationships, and build their brands among potential new customers and partners.
The HACR Hispanic Procurement Report serves as a tool for Fortune 500 companies to gain a better understanding of the opportunities and challenges that companies have when working with minority vendors, as well as offers recommendations for how to increase the utilization of these vendors moving forward.
The report aims to determine if companies are leveraging the growing presence of Hispanic-owned businesses in the supplier market to their benefit. We begin by examining overall trends in procurement and then comparing those with the utilization of minority-owned businesses, with a specific focus on those that are Hispanic-owned.
HACR HISPANIC PROCUREMENT REPORT
• The average total number of U.S. based Hispanic suppliers for the sample was 187 in 2014 compared to 169 in 2013.
• The average total U.S. based procurement spend with Hispanic-owned businesses was nearly $800 million in 2014.
• 96 percent of the sample had a strategic plan for supplier diversity which was reviewed regularly.