Supply Chain Management

In 2006, Chevron spent approximately $30 billion on goods and services from suppliers and contractors ranging from large multinational corporations to locally based businesses in communities in which we operate. Building local supplier capacity is one of the most important ways we benefit communities.

Building a Diverse U.S. Supplier Network

Sourcing from small, women-owned and minority-owned businesses helps us meet our business needs while stimulating economic growth. In 2006, we spent approximately $2.8 billion on goods and services provided by small businesses in the United States, exceeding our goal of 27 percent of total U.S. expenditures. In addition, we spent $432 million with minority-owned businesses and $373 million with women-owned businesses, both of which were slightly under our 5 percent spending goal for each category.

We have several strategies in the United States to attract a diverse supplier network and monitor our efforts against our goals. These include training and outreach programs to potential suppliers on our requirements; helping large suppliers with contracts of more than $500,000 to understand our supplier diversity initiatives; and requiring large suppliers to identify opportunities to increase their own supplier diversity.