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Boosting Suppliers

Johnson Controls is honored for its work with minority suppliers

The honors keep rolling in for Johnson Controls—in this case, for the company’s successful efforts to develop a broad network of supplier diversity. 

The National Minority Supplier Development Council (NMSDC) recently presented Johnson Controls with its “Corporation of the Year” award in recognition of achievements in minority business development. 

Johnson Controls is the only business-to-business company to receive this honor twice since NMSDC’s founding in 1972. 

It’s a win for customers, too, as the diverse suppliers help Johnson Controls address the needs of a diverse and growing group of customers.

By the Numbers

Johnson Controls’ spending with diverse suppliers grew from $1 billion in 2006 to more than $1.5 billion in 2007, including $1.29 billion spent with minority suppliers (Asian, Black, Hispanic and Native American) certified by the NMSDC. 

While many major companies are working to consolidate and reduce their number of suppliers, Johnson Controls nearly doubled its number of minority suppliers from 140 in 2006 to 276 in 2007. 

“This award is a testament to our commitment to sustainability, which includes being a leader in supplier diversity,” said Steve Roell, chairman and chief executive officer of Johnson Controls. “Partnering with organizations like the NMSDC, our customers and innovative diverse suppliers is not only good business, it’s a smart approach to advancing our global competitiveness in an increasingly diverse marketplace of new ideas.” 

Johnson Controls has consistently implemented best practices recommended by the NMSDC for world-class supplier diversity performance. In the past few years, the company implemented new initiatives that developed minority suppliers and enhanced their involvement. Johnson Controls also put together a training initiative that works to increase understanding among Johnson Controls employees of the company’s minority outsourcing and other related activities.
“Not only do our diverse suppliers increase our competitiveness, they also allow us to realize cost efficiencies,” said Reginald Layton, director of supplier diversity. “In turn, our support helps to strengthen the suppliers and their local economies.”