Pacific Gas and Electric Company (PG&E) announced that the California utility company “spent $2.58 billion with diverse suppliers in 2017, accounting for 42.25 percent of its total procurement.” This marks the “sixth straight year, diverse suppliers accounted for $2 billion-plus of the company’s spend” and the fifth consecutive year that “more than 40 percent of PG&E’s total spend” went to diverse suppliers.
The numbers are staggering and have many in the industry of supplier diversity wondering just how the large utility company has managed such a feat. According to Business Wire, one “of the ways PG&E has supported diverse suppliers is by producing multiple workshops throughout the year which educate small and diverse businesses on how to compete for utility business. PG&E’s technical assistance and capacity building initiatives have helped businesses become more competitive.”
Another cool concept from PG&E includes PG&E’s Supplier Development Program which matches “30 diverse suppliers with PG&E senior executive mentors.” PG&E has developed a well-oiled procurement machine that helped the company achieve revenues of over $17 billion last year. While these numbers are among the industry’s highest, it will be interesting to see how the company plans to grow and if possible, educate other corporations and industries on the best ways to incorporate diverse businesses into a solidified supply chain.
