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Supply Chain Management

Applied® operates a robust supply chain network, delivering the right mix of more than 7 million industrial products to support customers in virtually every industry. Our continued growth is greatly aided by longstanding relationships with suppliers who represent the highest quality brands and deliver comprehensive solutions for our customers’ needs. We represent more than 4,000 world-class manufacturers that lead the industry with innovative, efficient and reliable industrial products.

Our suppliers are expected to adhere to our Supplier Code of Conduct to ensure Applied’s ethical expectations are upheld. Additionally, we conduct annual performance evaluations of our top suppliers using scorecards and surveys. Our teams carefully review the results and develop action plans that benefit all stakeholders.

Based on our supplier evaluations and with input from senior management, a supplier is selected and presented with an Applied Vendor of the Year award. The award commemorates the tradition and value of our supplier relationships, and its unique design represents Integrity, Innovation, Continuous Improvement and Teamwork, which are central to Applied and our Core Values.

The Applied® headquarters grand sundial commemorates the heritage and heralds the future on which our headquarters and business stands. The award commemorates the tradition and value of our supplier relationships. The four stone pillars represent Integrity, Innovation, Continuous Improvement and Teamwork.

Sourcing & Procurement

Conflict Minerals

The Securities and Exchange Commission has adopted conflict mineral reporting rules that require public companies with manufactured products containing four identified conflict minerals - tin, tantalum, tungsten, and gold - to adhere to certain assessment and reporting requirements.

Applied® is primarily an industrial distributor, not a manufacturer. Our products are predominantly used in industrial MRO operations, rather than OEM applications, and therefore are typically not within the rule’s scope. While we cannot certify to the contents of all the millions of products we distribute, we have integrated conflict minerals compliance into our supply chain management processes and continue to assess our suppliers’ products. As a public company, Applied files our Form SD with the SEC, and we post our Conflict Minerals Report on our website. he conflict minerals rule adopted by the Securities and Exchange Commission provides assessment and reporting requirements for public companies whose manufactured products contain any of four conflict minerals – tin, tantalum, tungsten and gold.

Supplier Diversity

Applied’s Supplier Diversity / Small Business Program provides diverse businesses an opportunity to become one of our valued suppliers. We actively seek and encourage the growth of:

• Minority and women-owned business enterprises (MWBEs)

• Veteran-owned and service disabled veteran-owned businesses

• Small businesses

• Small disadvantaged businesses

• HUBZone businesses 

Suppliers are assessed and chosen based on the best fit for our customers’ needs. We also seek to participate in diversity-related community events and to provide training when necessary.