2010 Best-in-Class Supplier Diversity Nonprofit/Government


The Federal Reserve Bank of Cleveland (FRB) has invested significant time and resources to establish a comprehensive supplier diversity strategy. As a result, it achieved positive results in its diverse spend, both nationally and in Northeast Ohio. Eight percent of its national spend ($2 million of $30 million) was with minority business enterprises (MBEs), compared to five percent for the nonprofit/government comparison group. Regionally, 20 percent of its spend was with MBEs. Effective strategies include:

  • Communicating the bank’s supplier diversity commitment to its management and staff. A review and discussion of planned and anticipated business opportunities takes place so that the contracts and procurement staff can source MBEs in advance of the proposal process.
  • Locating vendors and suppliers by accessing the Minority Business Information System through its corporate membership with the Northern Ohio Minority Supplier Development Council (NOMSDC) and the Dunn & Bradstreet Supplier Locator. Additionally, in June 2010, a vendor registration process was added to its external diversity Web site.
  • Obtaining and providing feedback to enhance business relationships via the contracts and procurement staff and business areas. This includes working with FRB’s office-supply provider to identify diverse suppliers and provide easy access to products from diverse suppliers on the online order site. This process has increased diversity spend and realized cost savings.
  • Attending the 2010 National Minority Supplier Development Council conference in Miami and participating in the planning and coordination of a supplier diversity program on a Federal Reserve system level. The contracts and procurement manager, along with the Bank’s diversity officer, participate in supplier diversity-related events offered by NOMSDC and the Commission on Economic Inclusion.
  • Placing the supplier diversity mission, purchasing policy and registration link only one click from the home page on the Web site. Producing and disseminating a brochure on doing business with the Federal Reserve Bank of Cleveland which includes this statement: “The Federal Reserve Bank of Cleveland is committed to providing equal access to potential business opportunities for qualified minority-owned and small businesses.”
  • Offering feedback to unsuccessful bidders via the contracts and procurement team. This has been useful for building and enhancing vendor relationships and has resulted in very successful outcomes.

“The Federal Reserve Bank of Cleveland began a formal diversity and inclusion journey several years ago, and in 2009, we launched a supplier diversity program. I am proud of the results the leadership team and staff have achieved thus far, and I firmly believe diversity and inclusion will continue to be important to the Bank's future success. “

Sandra Pianalto
President and CEO
Federal Reserve Bank of Cleveland