In Zach Hodson’s first year as Director of Purchasing and Procurement, the Finance team has fulfilled a WIDE commitment by increasing purchases with Disadvantaged Businesses (DBEs) by more than 400 percent.

Last year, Cornerstones of Care spent an estimated $343,000 with DBEs and is currently on pace for $1.17 million in 2024. Projections for next year are expected to reach $1.9 million, led by our new IT consultant PTG, a woman-owned business. A disadvantaged business is at least 51 percent owned by a person from a socially disadvantaged group, including ethnic, racial, or gender, according to the U.S. Small Business Administration.  

The increased spending with DBEs fits our WIDE commitment by promoting diversity in our relationships within the community. Next month, Cornerstones of Care will purchase office supplies through another DBE, Tennessee-based Guy Brown, which ships products nationwide. At last month’s Leadership Summit, lunch was provided by two DBE food trucks, and staff from each truck were given a few minutes to talk about their small business and work in the community. 

“DEI has been a part of every organization I’ve worked for, but we’ve never developed relationships at this level,” said CFO Jill Beck. “We decided to put our money where our mouth is.”  

This is part of a larger project to improve both the quality and quantity of our purchases. When Zach was named Director of Purchasing and Procurement at the beginning of the year, Jill expected it to take a couple of years for the new position to pay for itself. In three quarters of a year, the position has paid for itself by saving $182,000 in procurement through purchasing groups and first-time vendor discounts. 

In addition to providing value and our WIDE commitment, working with DBEs often provides better client service. Jill and Zach highlight the relationship with PTG, which began this summer as a prime example. During a protracted negotiation process, PTG was highly professional and responded in a timely and accessible manner. 

“PTG is a success story that checked every box for us,” Zach said, and Jill added: “They have a process that starts with listening to us and understanding what we want in our relationship.” 

Cornerstones of Care’s purchasing policy requires departments to go through a bidding process for one-time expenditures of $10,000 or more. Through the expanded purchasing process, Jill encourages departments to work with Zach for any significant purchases, even if they don’t meet the $10,000 threshold, to get his advice about making thoughtful purchases.  

“Zach is a great resource for our teams to get his advice and support no matter how large the purchase,” Jill said. “I encourage our teams to reach out to him.”