Forest City’s focus on a diverse supplier base helps us better execute our strategy and benefits the neighborhoods we serve. By embracing diversity in both our operating properties and new construction projects, we are able to have a meaningful impact on the surrounding community and better respond to the needs of our tenants and residents.
Whenever possible, Forest City aims to exceed local or regional supplier requirements during both the construction and maintenance of our properties. For all new construction projects without a local requirement, we set our own internal supplier diversity and hiring goals.
Our supplier diversity program aligns with national organizations such as the National Minority Supplier Diversity Council and the Women's Business Enterprise National Council. We set internal targets that support the growth and success of minority- and women-owned businesses.
In 2017, we exceeded our nine percent target for Procurement-directed diversity spending, reaching 12 percent of our Operational spend with minority, women, veteran and/or disadvantaged business enterprises. For all projects larger than $25,000, we require at least one diverse contractor to be included in the bidding process. Forest City utilizes a supplier locator tool that offers a database of diverse vendors that can be sorted by region to evaluate and select locally based suppliers for our projects. In 2018, we will begin working more proactively to get new diverse suppliers certified, so we may continue to expand this mutually beneficial program.
Supply Chain Management
Our procurement team assesses our supply chain to identify our high-volume and/or critical component suppliers. In 2017, we identified 111 critical Tier I suppliers representing 28 percent of our total procurement spend.
Forest City focuses on cost, delivery, service, quality and innovation to deliver continuous improvement to the organization. Within each of these aspects our procurement team prioritizes Supplier Diversity for both Tier I and II suppliers and adherence to our Supplier Code of Conduct. For our new development and construction activities, we work with suppliers to ensure that our buildings meet LEED standards.
Tier 1 Supplier Breakdown
|Type of Supplier||Number of Suppliers||Share of Total Procurement Spent (%)|
|Total tier 1 suppliers||4,040||100%|
|Critical tier 1 suppliers||111||28%|