Our Review

The nature of UPS’s work puts the company in almost every community in America and they aim for their supplier diversity program to reflect this. UPS launched its supplier diversity initiative in 1992 and spent $2.4 billion dollars with diverse suppliers in 2019. This was a decline from 2018’s $2.6 billion, though UPS had increased spend by 250% from 2017. 

UPS has a tier 2 program, and also reports its diversity metrics to those customers that request it do so.  For its suppliers, UPS offers to assist in creating supplier diversity programs if necessary. Tier 2 reporting is also available quarterly, suggesting there is an opportunity for UPS to be more transparent in its reporting. 

UPS recognizes that it needs to improve its use of underrepresented businesses, describing it as “urgent” and “unfinished business”. However, we found no publicly announced initiatives to find more effective ways and methods to economically empower minority, women, veteran, disability and LGBTQ-owned businesses. UPS has a venture arm that invests in emerging companies, however details were scarce on its areas of focus. 

UPS Says

"We believe that supporting a diverse and inclusive supply chain is a winning strategy: it drives economic development in local communities, encourages innovation, and ultimately enhances UPS's products and services for our customers. Simply put, diverse partners bring fresh and innovative approaches to our business." -David Adbey, UPS Chairman and former Chief Executive Officer

"Supplier Diversity at UPS involves working to ensure that small and diverse businesses have equal footing in the competitive bidding process. Contracts are not awarded based on size or diversity, but we know that working to ensure small businesses and diverse companies have opportunities to bid on contracts, makes UPS stronger. Their solutions provide tremendous value to our customers and shareowners." - Jose Turkienicz, UPS Chief Procurement Officer and President of Real Estate and Risk Management. 

Recognized Diverse Suppliers Groups Include

At least 51% owned, controlled AND operated by one or more members of a diverse group:

• MBE – Minority Business Enterprise
• WBE – Women Business Enterprise
• DOBE – Disabled-Owned Business Enterprise
• SDVOB – Service Disabled Veteran-Owned Business
• VBE – Veteran-Owned Business Enterprise
• SBE – Small Business Enterprise
• LGBTBE – Lesbian, Gay, Bi-Sexual or Transgender Business Enterprise

Accepted Certification Agencies Include

• Women’s Business Enterprise National Council
• National Minority Supplier Development Council
• National Veteran Business Development Council
• Disability:IN
• National LGBT Chamber of Commerce