Landing a contract with a major corporation can be a turning point for small and minority-owned businesses, but many never get the chance because they haven’t had the sort of networking opportunities that create contacts within large organizations.

“There is an unconscious bias for organizations to be leaning toward suppliers with whom they are familiar,” said Pradip Khemani, vice-president of global business services with Blue Shield of California.

To dismantle these barriers and promote equity and inclusion, many large companies have established supplier-diversity programs. Blue Shield’s program is open to certified small businesses and those that are at least 51% owned and operated by women, minorities, disabled persons, disabled veterans or LGBT (lesbian, gay, bisexual, transgender) people.

The centerpiece is a web portal where diverse suppliers can register to be considered for contracting opportunities. The program also includes outreach efforts, such as an annual fourth-quarter summit that is open to all, including Blue Shield’s existing diverse suppliers and community organizations that bring in their own members. 

“A lot of innovation and transformation is happening in diverse communities. A lot of our suppliers with different backgrounds are doing some fantastic work. We want to be the preferred brand for diverse suppliers,” says Khemani.

Blue Shield of California spends nearly 10% of its total procurement outlays with diverse suppliers. DiversityInc, which evaluates companies on inclusion efforts, ranked Blue Shield as its top regional company for overall diversity in 2021, which included a review of supplier practices.

Dealing with any large company, of course, can be daunting. To get the most out of Blue Shield’s program, follow these five simple dos and five don’ts:

Blue Shield of California is the winner of the HFS Research OneOffice Award for supplier diversity in 2022.

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