Skip to main content

How Amazon's Strategic Procurement Drives Inclusive Growth

Published Nov 25, 2024 by Brina Morales

Picture of Fall 2024 CPO Convening attendees

Fall 2024 CPO Convening

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 advancing supplier diversity and inclusion throughout our supply chain is communicated at every level.

According to Amazon’s 2023 Sustainability Report, the company’s global supplier diversity and inclusion (SD&I) 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 to the Billion Dollar Roundtable, a nonprofit 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 include majority owners identifying 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 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 SD&I 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 goes beyond statements. Oates stressed the importance of crafting a well-defined vision, supported by actionable strategies to advance supplier diversity objectives. He also noted that 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. This creates a positive ripple effect that brings opportunities to underrepresented companies.

To learn more about the Partnership’s Supplier Diversity workstream, contact LaTanya Flix.

Related News

Economic Development

From HVAC to Home Runs: How Daikin Fuels Economic Growth in Houston

3/27/25
Daikin Comfort Technologies North America is making history in Houston—not just on the field, but across the region. As the new namesake of the Astros’ ballpark, Daikin’s investment in the Houston region has been a game-changer for the regional economy and community.  Daikin’s journey in the Houston region has been one of steady growth and impact, and it all began over a decade ago. In 2012, the Japanese company acquired Goodman, a leading U.S. manufacturer of residential air conditioners. The acquisition strengthened Daikin’s foothold in the U.S. market and expanded its product offerings.  In 2017, the company opened the Daikin Texas Technology Park in Waller – just outside Houston – after consolidating Goodman’s four U.S. factories, headquarters, and distribution bases. The 4.2 million square-foot facility also serves its North American headquarters.  Since then, Daikin has invested more than $1 billion in the region, including over $500 million in the technology park alone. In 2023, the company announced the launch of a new product line focused on digital HVAC technology.   “Since establishing their campus in the region, Daikin has continued to grow, invest, and create jobs,” Steve Kean said. “Their expansion has brought new opportunities, strengthened our economy, and reinforced Houston’s role as a hub for global manufacturing and advanced technology.  Their knowledge and technology will also be valuable to our community as we maintain and grow our position as the world’s energy capital.”   As the Astros take the field at the newly renamed Daikin Park, the partnership marks more than a new name on the stadium — Daikin’s commitment to Houston goes far beyond the stadium. Through community programs focused on education and sustainability, the company is helping strengthen the region while reinforcing its commitment to innovation, economic growth, and global recognition for the region.  In partnership with the Astros, Daikin is launching two major programs. The Most Valuable STEAM Scholarship will provide Houston-area students with resources to pursue careers in science, technology, engineering, arts, and mathematics. Daikin’s community cooling program will bring energy-efficient HVAC systems to underserved households, helping families stay comfortable while lowering energy costs.  Complementing these developments, the City of Houston has undertaken infrastructure improvements around Daikin Park. Texas Avenue, between Crawford and Hamilton Streets, was repaved — with crews removing 10 inches of pavement and replacing it with concrete and asphalt. Work began March 8 and continued around the clock to ensure the street reopened ahead of Opening Day, showing the city's commitment to creating a seamless experience for fans.  Daikin’s long-standing commitment to Houston shows that when global companies invest in our region, everyone benefits. From job creation and workforce development to education and sustainability, Daikin’s work in Houston is a strong example of what can happen when business, government and community come together.  Click to expand Daikin’s naming rights deal for the stadium runs through the 2039 season.  Learn more about what makes Houston the ideal place to live, work and build a business.
Read More
Economic Development

George R. Brown Convention Center’s $2 Billion Transformation Project

3/10/25
The George R. Brown Convention Center (GRB) is set to undergo a major transformation that will reimagine downtown Houston into a pedestrian-friendly convention and entertainment district.  Mayor John Whitmire and Houston First Corporation recently unveiled a master plan for the project, marking the first substantial renovation since 2016, which opened the building to Discovery Green and created the Avenida Houston Plaza.   The $2 billion project aims to bolster Houston’s position as a global hub for sports, entertainment and tourism, an especially timely investment as the city prepares to host FIFA World Cup matches in 2026 and the Republican National Convention in 2028.   Phase One  Click to expand The first phase of development includes a 700,000-square-foot building, GRB Houston South, which will serve as a key connector between downtown and Houston’s East End. The building will include two exhibit halls, a multipurpose hall opening to the new Central Plaza, an atrium flex hall, ground-level retail and dining spaces and what is set to be the largest ballroom in Texas.  Click to expand Additionally, the Avenida Plaza will be extended south to connect Discovery Green with the new Central Plaza, creating an expanded gathering space for large-scale events and community activities.  “This project is truly transformative for downtown Houston, a lasting legacy that will solidify our position as a top-tier convention and entertainment destination,” said Mayor Whitmire in a press release. “Most importantly, we are creating a space that will build community, foster connection, and shape the future of Houston.”  Click to expand The project's design is inspired by Houston’s bayous and natural prairie landscape. Along with its nature-inspired elements, the building will use eco-friendly materials and energy-efficient systems, including rainwater collection and water-saving features, to minimize its environmental impact and strengthen the city's sustainability efforts.  The groundbreaking project will be funded by a portion of the state’s hotel tax revenue, made possible by Senate Bill 1057, which passed in 2023.  The Need for Expanded Infrastructure  With Houston’s hospitality and tourism industry rapidly expanding, the demand for expanded infrastructure has never been greater. In 2024, the city welcomed more than 54 million visitors, an increase of six percent from 2023 and nearly 10 percent since 2019, according to Houston First.  Click to expand “It is imperative for us to stay competitive and meet the needs of our meetings and convention customers,” said Michael Heckman, President and CEO of Houston First, in the same release. “This project will not only accomplish that but will "establish a gathering space that will be the epicenter for entertainment, sports, and city-wide events, accentuating our ability to capitalize on Houston's unique offerings.”  GRB Houston South is scheduled to open in May 2028, with the full project expected to be completed by 2038.  Discover more about living in Houston. 
Read More

Related Events

Diversity and Inclusion

Houston Business Accelerator Outcomes Briefing and Q&A

Join us virtually on May 8th for an exciting virtual to hear outcomes from the 2024 Houston Business Accelerator pilot and to introduce the second pilot of the program.…

Learn More
Learn More
Executive Partners