SMALL SUPPLIERS MAKE A BIG IMPACT

The strength of the Medtronic supply chain can be found in its diversity — and it’s bringing value to the business and local communities.

CONTRIBUTING TO COMMUNITIES THROUGH SUPPLIER DIVERSITY PARTNERSHIPS

Supplier Diversity Partnership with PKG Packaging

PKG Packaging supports its employees and the Medtronic Mission
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The unique history of Medtronic is not left in the archives. The company began nearly 70 years ago in a small, Minneapolis garage and those humble beginnings help to inform decisions today — including who it teams up with to further its Mission and make a positive impact on communities around the world.

“We were a small company once, too,” says John Klein, chief procurement officer at Medtronic. “It’s important that Medtronic provides opportunities for other small companies to grow and make an impact. We believe that partnering with suppliers of all sizes is vital to fulfilling our Mission.”

That mindset is the backbone behind the company’s Supplier Diversity program, aimed at increasing supply chain diversity and innovation through partnerships with small, minority-owned businesses in the United States. Since launching the program in 2003, Medtronic has not only gained competitive advantage by utilizing the innovation and flexibility of a high-quality, diverse supply base, but the program is extending the shared value that diverse suppliers bring to their communities — increasing social mobility and improving the economic health of underserved areas.  

In 2018, Medtronic made $1.7 billion in purchases of goods and services from small and minority-owned business, including women, veteran, disabled, and LGBTQ-owned businesses. An economic impact analysis of these expenditures estimates over $3 billion in direct and indirect economic activities supporting 17,500 jobs in the U.S. alone.1

Small and minority-owned business partnerships also help communities improve an important social determinant of health2: employment. And in Oxnard, California, that’s translating into brighter futures for employees at PKG Packaging.

Our Suppliers, Making a Difference

Meg Roughan, owner and president of PKG Packaging

“It’s like a family here,” says Meg Roughan, owner and president of PKG Packaging. “And I’m humbled to be providing safe and secure jobs for people in our community.”

If Meg isn’t in her office, she’s likely with her employees on the warehouse floor — never far removed from the day-to-day operations of the business, or its people. Her 20-person team specializes in providing innovative and sustainable packaging for businesses across the country, including Medtronic. Since 1998, PKG Packaging has provided Medtronic packaging solutions for insulin pumps used by diabetes patients.

“Medtronic is doing a lot to improve lives, and we’re honored to be a part of that,” she says.

As a minority-owned, local company, PKG Packaging is the type of partner Medtronic often seeks out to help improve its supply chain. Not only because they are a diverse supplier, but because they value their employees as much as they value their business.

“We want to provide good, stable jobs,” says Roughan. “We want to support our people and provide opportunities to make an impact in the local community.”

 

PKG Packaging employees

For example, PKG actively recruits workers from the community and offers student workers flexible hours, allowing them to earn enough income to support themselves — and in some instances their families — while earning a degree at the local college.

These are the kind of values that Medtronic looks for in a supplier. As a purpose-driven company, Medtronic aims to make the world a healthier place. It’s an idea embedded into the business, activated by employees, and extended by the company’s partners — including PKG Packaging.

“We hire from this community and volunteer in this community,” says Craig Swett, vice president at PKG. “We want to be a great citizen and be known for that.”

Klein believes the Supplier Diversity Program is a great way to give back.

“We’ve generated economic benefit for the local markets where we partner with diverse suppliers,” he says. “Our partners are building real pathways to economic growth for their employees and communities.”

Inclusion and Diversity Accelerate Innovation

Packaging for Medtronic insulin pump created by PKG Packaging.

In addition to improving healthcare, Medtronic is committed to inclusion and diversity as accelerators of innovation and business performance. And a global, diverse, and responsible supply chain is integral to delivering world-class products and services that improve patient lives. 

“We remain committed to this,” says Klein. “We are proactively engaging with diverse suppliers. We seek them out, bring them in, and give them a chance to be part of our collective impact.”

In 2018, Medtronic directed 30 percent of its U.S. supplier spend to small and diverse companies, a number the company plans to grow year-over-year.

It’s an opportunity that PKG is proud to share.

“Medtronic has been a big part of our growth,” says Roughan. “They’re a consistent customer, we love their Mission, and we want to prove we can get things done in a hurry for them. And get it right.”

1

Medtronic Supplier Diversity Economic Impact Report (FY2018) performed by Supplier.

2

Social Determinants of Health via CDC.gov https://www.cdc.gov/socialdeterminants/index.htm