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Supplier diversity is good business for all

Reggie Layton
As a member of the Billion Dollar Roundtable for the past six years, Johnson Controls is one of just 18 companies spending $1 billion or more annually with diverse suppliers – certified minority and women owned, operated, or controlled firms. Johnson Controls is the only business-to-business company twice named Corporation of the Year by the U.S. National Minority Supplier Development Council (NMSDC).

Why is Johnson Controls so highly engaged with diverse suppliers? To find out, we asked Reggie Layton, Director of Diversity Business Development for Johnson Controls. Reggie was named Minority Business Enterprise Advocate of the Year by the NMSDC in 2003 and 2008 and serves on the board of directors of the NMSDC.

Why does Johnson Controls pursue supplier diversity?
Supplier diversity strengthens our supplier base and revenue. Our network of more than 500 diverse suppliers in more than 50 product and service categories gives our purchasers more choices. That motivates our entire supply base to be more competitive on price, quality and delivery. Providing products with diverse supplier content helps our customers as they seek to economically develop diverse communities. Doing so gives us a competitive advantage and has generated billions of dollars in new business.

How do you develop and nurture diverse suppliers?
We offer fellowships for diverse business owners to some of the country's top business schools where they receive training on such things as how to take their companies public, engage in joint ventures or do business internationally. We provide training on lean manufacturing, Six Sigma and other disciplines to help them build capacity. We refer diverse suppliers to our purchasing teams where there's a good match for specific projects and track the results. We give all our suppliers a scorecard. Those who perform best receive recognition and more business.

Johnson Controls has received considerable recognition for these efforts. What does that say about the company?
When we receive recognition from respected third parties, it really validates that we do what we promise, which is work with and support diverse firms.

Supplier diversity is good for your business. How is it good for others?
Diverse suppliers provide jobs. In fact, a study done by Northwestern University's Kellogg School of Management found that minority suppliers hire minority workers to a much larger extent than non-minority suppliers. Those jobs provide wages and salaries to the fastest growing segment of our population, and that contributes significantly to our economy. So it's good business for everyone.

Learn more about our supplier diversity program.
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