Eaton’s Intentionally Inclusive Supply Chain
Originally published in 2021 Global Inclusion and Diversity Transparency Report
At Eaton, we strive to engage a diverse supply base reflecting the communities where we live, work and serve. We actively seek to engage businesses that include small, veteran-owned, disabled-owned, minority-owned, LGBTQ+, women-owned and historically underutilized business zone suppliers.
We strengthened our supplier diversity program, purchasing approximately $1.42 billion in goods and services from small and diverse suppliers in 2021. This saw us increasing our spending with minorityowned businesses by 4% and with disabled-owned suppliers by 285% from 2020. We also completed the Disability Equality Index and received a score of 90 out of 100.
In 2021, we were recognized as “Best-of-the-Best” for Inclusion and Diversity by the National Business Inclusion Consortium. We were also awarded the Done Deals Award from Women’s Enterprise Business Council Ohio River Valley (WBEC ORV) and we received an honorable mention in the Top 10 Global Champions for Supplier Diversity and Inclusion award by WEConnect International.
In addition to our efforts with our Tier 1 suppliers, Eaton supports a Tier 2 Program through which we work with our suppliers to create more opportunities for diverse-owned businesses. Eaton requires all suppliers who participate in our Tier 2 Program to submit reports detailing their purchases from diverse suppliers every quarter.
Performance and impact
Eaton’s Intentionally Inclusive Supply Chain engineers stable business growth and economic impact through innovative and diverse supply chain solutions. In 2021, Eaton’s engagement with small and diverse businesses led to more than $2.4 billion in contributions to the U.S. economy and supported 13,791 jobs. Our Supplier Diversity Program supports job growth at our suppliers and triggers a multiplier effect that supports additional jobs in our supply chain and across supplier communities.
Our impact in numbers (2021)
- 15.5% spent with diverse suppliers totaling $698M+
- 6.9% spent with Minority-Owned Business Enterprises
- 6.9% spent with Women-Owned Business Enterprises
- 18.3% spent on direct material with diverse suppliers
- 14.2% spent on indirect material with diverse suppliers
- 15.8% spent on logistics with diverse suppliers
- 1,250+ diverse suppliers engaged during the year
Our U.S. economic impact in numbers (2021)
- $2.4B Revenues earned by suppliers and businesses in Eaton’s supply chain and communities
- 13,791 Jobs
- $767.4M Incomes
- $784.8M Personal, business and sales taxes generated in the US
Policy statement:
Eaton believes that our corporation, our communities and our customers benefit from us providing equal opportunities for diverse enterprises to compete for Eaton’s business. It is imperative our suppliers reflect the communities where we live, work and serve. Active solicitation of diverse suppliers helps us to realize our aspirational goal of becoming a model of inclusion and diversity in our industry and operationalizes our belief in the power of diversity.
Our intentionally inclusive strategy
Supplier diversity takes root as part of the procurement infrastructure and seeks to create an inclusive supplier pool for contracting, purchasing and outsourcing, using various proactive strategies.
- A Global Supply Chain Council (GSCC) and supplier diversity team that is responsible for implementing a corporate-wide supplier diversity program and process
- An evaluation of the existing supply chain to identify significant opportunities for diverse suppliers (inclusive of e-procurement online bidding activity)
- A diverse supplier directory and policy posted on the Eaton intranet
- The development of strategies by business/commodity and establishment of strategies to cultivate alliances with targeted suppliers (mentorship program)
- Participation in diversity business organizations and councils
In 2021, Eaton spent more than $309 million with minority-owned firms, $310 million with women-owned firms, and $159 million with veteran-owned firms, representing 6.9% MinorityOwned Business Enterprises (MBE), 6.9% Women-Owned Business Enterprises (WBE) and 3.6% Veteran-Owned Business Enterprises (VET) of total outside purchases respectively.
Top suppliers currently doing business with Eaton encompass various commodity and service areas, including contingent labor providers, packaging, MRO, fabricated machined parts, injection molding, steel service centers, electronics and logistic services. Through participation with several regional purchasing councils, Eaton offers scholarships to executive training programs for owners of diverse firms in support of supplier diversity initiatives.
- $309M spent with Minority-Owned Business Enterprises
- $310M spent with Women-Owned Business Enterprises
- $159M spent with Veteran-Owned Business Enterprises
Read the full report here
