Amazon’s leadership in supplier diversity has positioned the corporation for success while driving inclusive economic growth. Kennedy Oates, Partnership Board Member and Vice President of Global Procurement at Amazon, shared insights and best practices at the Greater Houston Partnership’s One Houston Together Fall Chief Procurement Officers (CPO) Convening.  Oates discussed how Amazon has grown its supplier diversity efforts by ensuring the value proposition of intentional inclusion of underrepresented businesses is communicated at every level. According to Amazon’s 2023 Sustainability Report, the company’s global supplier diversity and inclusion (SDI) program is estimated to have supported over 30,000 U.S. jobs and generated approximately $2.8 billion in wages earned from Amazon's certified U.S. Tier 1 supplier diversity spend.  In 2023, Amazon was inducted into the Billion Dollar Roundtable, a non-profit organization comprised of U.S. corporations that each spend $1 billion or more annually on a Tier 1 basis with diverse suppliers. These diverse-owned businesses comprise majority owners who identify as minorities, women, veterans, disabled and LGBTQ.  Oates stated that achieving this milestone required a deliberate approach, built on a clear vision, a targeted strategy, and an empowered team dedicated to executing these goals. By embedding supplier diversity into Amazon’s core procurement practices, they’ve fostered a sustainable and inclusive growth model that supports both the company’s goals and the success of diverse suppliers. Key Takeaways from CPO Convening Supplier Diversity as a Strategic Value Proposition Oates emphasized the importance of viewing supplier diversity as more than just an initiative—highlighting the long-term value diverse suppliers bring to a company and its surrounding communities. Through its global SDI strategy, Amazon measures impact through jobs supported, wages earned and economic output generated. “Given our reach and scale, Amazon has a greater responsibility.” – Kennedy Oates, VP of Global Procurement, Amazon Vision-Driven Goals with Clear Strategies For Amazon, supplier diversity goals go beyond simple statements. Oates stressed the importance of crafting a well-defined vision, supported by actionable strategies to advance supplier diversity objectives. This approach includes setting clear, market-specific spending targets, identifying procurement categories that have greater opportunity based passed success, and building relationships with suppliers by understanding their needs and their customers’ needs. In addition, internal teams should have collaborative discussions on supplier diversity across the entire business rather than in silos.   Partnering with Companies at Every Level “Every large company was once small.” – Kennedy Oates, VP of Global Procurement, Amazon Amazon is redefining procurement by challenging the perception that only large companies can serve large corporations. Its approach embraces partnerships with businesses of all sizes, embedding supplier diversity as a core element of its supply chain. While direct spending with certified Tier 1 diverse suppliers is central to Amazon’s SDI program, the company further amplifies its impact by encouraging Tier 1 suppliers to include diverse Tier 2 businesses in their procurement processes. For example, Amazon sets specific spend targets in contracts with Tier 1 suppliers to use Disadvantaged Business Enterprises, creating a positive ripple effect that brings opportunities to underrepresented companies deeper in the supply chain. To learn more about the Partnership’s Supplier Diversity workstream, contact LaTanya Flix.

William P. Hobby Airport has officially broken ground on its $470 million expansion project aimed at enhancing the passenger experience.  The project will expand and modernize the airport’s West Concourse, originally built by Southwest Airlines in 2015. Planned upgrades include seven new gates, an advanced baggage-handling system, additional baggage claim carousels, and an overhead canopy along the departure curb to protect passengers from inclement weather while connecting the terminal to the parking garage.  “This expansion isn’t just about adding more gates—it’s about enhancing every aspect of the passenger experience,” said Jim Szczesniak, Director of Aviation for Houston Airports, in a statement. “As North America’s first and only 5-Star Skytrax airport, it’s essential for Hobby Airport to offer facilities and services that match our world-class reputation. Partnering with Southwest Airlines on this project allows us to create a truly remarkable experience for all travelers.”  Click to expand Southwest Airlines remains a major player at Hobby Airport, accounting for over 90 percent of its flights in 2023, according to the U.S. Department of Transportation. Earlier this year, Southwest halted operations at Houston’s larger George Bush Intercontinental Airport to focus its Houston operations solely at Hobby.  “Since our first year of service in 1971, we’ve operated nonstop at Hobby Airport. It’s a cornerstone market for us, serving as a base for our flight crews and as a gateway city to our international service,” said Steve Sisneros, Vice President of Airport Affairs at Southwest Airlines, in a statement. “This expansion marks an exciting time for our future here, allowing us to grow our service and reach even more customers.”  Click to expand Slated for completion in 2027, the expansion will also support future growth as both Hobby and Bush airports continue to see record-breaking passenger numbers, welcoming 60.1 million travelers last year, an increase of six million from 2022.   Bush Airport is also undergoing its own expansion, having recently unveiled the new international Terminal D, which adds 160,000 square feet to its facilities. The project features six new gates, space for 16 dining concepts, and enhanced amenities such as a mother’s room, sensory room, children’s play area, upgraded restrooms, lounge seating and art installations.  Learn more about Houston’s airports at the Partnership’s State of the Airports event on Dec. 5, 2024.