Supply Chain Diversity

Office Depot is committed to the economic development of the communities in which we work and live. This commitment is highlighted by our comprehensive Supply Chain Diversity model, in which we expand opportunities for Historically Underutilized Businesses (HUBs) and provide these businesses with the chance to grow and prosper. Our support for HUBs, defined as certified minority-, women-, disabled-, LGBT- and veteran-owned businesses, is advanced through a wide range of initiatives, including programs that have set a new standard for effectiveness within our industry.

Our strategy achieves results. The proof is found in the numbers: Since forming the supply chain diversity team and later a formal program, Office Depot has accumulated spending with HUBs of more than $2.5 billion. In 2013, $250 million in HUB sales were generated at Office Depot. Product offerings from our HUB vendors are diverse, ranging from toner and paper to banking supplies, security cameras and safety equipment.

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At Office Depot, we expand opportunities
by implementing upon a five-part strategy:

1
Seek out HUBs through fairs, tradeshows and an enhanced vendor management process.

We are involved as sponsors and participants in events such as the Women’s Business Enterprise National Council’s (WBENC) National Conference, the National Minority Supplier Development Council’s Annual Conference, and annual events hosted by the Institute for Supply Management (ISM) and DiversityBusiness.com. We also host a HUB Vendor Showcase at our Corporate Headquarters, where the Office Depot Merchandising team was able to get to know our diverse vendors better to help discover opportunities for them within the Company. More than 20 vendors participated in the event, which included a reception with Office Depot merchants and executives.

2
Offer HUBs an equal opportunity in the vendor selection process.

Efforts to expand HUB opportunities include ensuring that they are well represented in our product assortment, are afforded visibility in our national full-line catalog and have an equal opportunity in the vendor selection process. While we work to create visibility and market opportunity for HUBs, we are also focused on ensuring they have the broadest possible opportunities to grow sales and market share.

3
Form partnerships with diverse businesses and HUB member organizations.

We work collaboratively with a wide range of national organizations, including the National Minority Supplier Development Council (NMSDC), the Women’s Business Enterprise National Council (WBENC), the National Gay and Lesbian Chamber of Commerce (NGLCC) and the United States Small Business Administration (SBA), as well as other organizations that share our goal of making a positive impact on economic development through supplier diversity.

4
Market HUBs nationally through catalogs, websites and
diversity-oriented media outlets.

Ours was the first and remains the only catalog of its kind in the office products industry. This initiative not only fuels growth in sales, inventory turnover and market expansion for these enterprises – it also provides a simple, easy-to-use mechanism for our business customers, helping them meet their diversity purchasing goals. The sixth annual edition of the HUB Catalog features more than 1,800 products offered by certified minority-, women-, disabled-, LGBT- and veteran-owned businesses. The broad assortment includes items ranging from writing instruments and binders, picture frames, and eco-friendly cleaning products.

5
Empower HUBs by raising their capabilities.

Office Depot works with its Tier One Partners, HUBs that are third-party resellers of Office Depot products, to help them compete more effectively in the marketplace. A unique component of the Office Depot Tier One Program is mentor-protégé support. We make available training and capabilities development that contribute to long-term growth and economic viability of our HUB partners to give Tier One Partners a superior position in the marketplace and maximum opportunity for profitable growth. Office Depot provides product, order fulfillment and a shared services package (customer service, sales and marketing support, etc.) that positions our partners for strong marketplace performance.