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Direct Spend Solution Zeros In On Annual Diversity Spend Target | Logistics

Large Group of Trucks at Truck Stop, Aerial View

Fulfillment, storage, and distribution services bring corporate social responsibility goals to fruition 

CHALLENGE

Spending in excess of a billion dollars on an annualized basis with certified diverse businesses, this global logistics and freight services provider bears a strong cultural and financial commitment to supplier diversity and DEI (diversity, equity, and inclusion) initiatives. In step with this commitment, this organization initiated an annual 5% Tier 2 diversity spend target that fell into alignment with its corporate social responsibility and governance goals.  

SOLUTION

RRD implemented a viable and sustainable direct spend solution where fulfillment, storage, and distribution services would be provided by a Midwest-based, approved and certified Minority Business Enterprise (MBE). 

To ensure viability, RRD executed a thoroughly documented supplier review process that included the monitoring, tracking, and submission of Tier 2 direct spend reports on a quarterly basis through the client’s automated Tier 2 spend portal. Additionally, diverse spend outcomes were presented during client QBRs. 

RRD also maintained regular engagement with client resources in connection with supplier diversity and procurement. This maintained the highest expected performance standards and contract requirements were being met.

RESULTS

In the end, RRD’s direct spend solution not only met the annual 5% Tier 2 diversity spend target, but helped a small, diverse business be competitive in the marketplace. Thanks to RRD’s experience in supporting supplier diversity initiatives, this client benefited from heightened levels of evaluation, reporting, and transparency.