CANADIAN ABORIGINAL & MINORITY SUPPLIER COUNCIL DRIVING DIVERSITY IN THE SUPPLY CHAIN

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1 DRIVING DIVERSITY IN THE SUPPLY CHAIN

2 CHANGING FACE OF CANADA 16 Who is your future customer? Who are your client s future customers? 31% Aboriginal and Minority Popula:on Growth (Millions) By 2016, 25% of Canada s popula'on will be Aboriginal and minority, growing to approximately 35% by million 16.2% 20% 1.2 million 3.8% 4.1% Projected Who are your future suppliers? Minori'es are buying/ star'ng businesses at 1.5 'mes the rate, and Aboriginal peoples at 9 'mes the rate, of other entrepreneurs. Aboriginal Minority Sources: Statistics Canada 2001, 2006 Census, Projections of the diversity of the Canadian population 2006 to 2031

3 WHAT IS SUPPLIER DIVERSITY? Corporate objec:ves of supplier diversity: Iden'fy cost savings, innova'on, global supply chain linkages Build brand loyalty and create wealth with fastest growing group of consumers Meet growing customer requirements for supplier diversity ('er 1) Equal access to purchasing opportuni:es Not a set- aside or quota program Expecta:ons of suppliers (quality, delivery, price, etc.) consistent. 3

4 THE BUSINESS CASE Enhanced compe::veness in your supply chain Iden'fy poten'al cost savings, flexibility, responsiveness, and innova'on Enable revenue genera:on Support government objec'ves of economic development of aboriginal, women, minori'es creates enhanced employment in these communi'es Improved social license to operate: Strengthen stakeholder (community, employee, shareholder) sa:sfac:on 4

5 RETURN ON INVESTMENT Over 'me, Supplier Diversity (SD) ROI can and is being calculated. Tangible Gains: $ saved in compe''ve bid Incremental Corp./Gov t Revenue *(SD Contribu'on e.g. 1%) Incremental Revenue from innova've product/service to market * (SD Contribu'on e.g. 5%) Revenue from fast growing diverse markets *(SD Contribu'on) Media and PR (e.g. cost of similar media ad placement) Costs: Memberships, Training Events and Travel SD Salary Diverse supplier training GAIN FROM INVESTMENT COST OF INVESTMENT COST OF INVESTMENT Intangible Gains: Supply Chain flexibility; supplier responsiveness (e.g. crisis); improved performance over incumbent; Differen'a'on from compe''on; build brand loyalty; enhance culture of diversity and innova'on; improved recruitment of diverse and non- diverse candidates

6 POLICY ENVIRONMENT Awareness and policy ini:a:ves increasing Federal Government - Procurement Strategy for Aboriginal Business set asides for aboriginal businesses Nunavut, Manitoba, Ontario - Aboriginal Procurement Policies Atlan'c provinces include supplier diversity requirements in major projects (e.g. offshore oil) Other jurisdic'ons ac'vely considering aboriginal/supplier diversity policy: Saskatchewan 6

7 ABOUT CAMSC Mission Facilitate procurement opportuni'es between major corpora'ons and suppliers owned and operated by Canadian Aboriginals and visible minori'es. Organiza:on Non- profit organiza'on, private- sector led Affilia:ons Reciprocal agreement with the NMSDC 40+ years linking minority businesses to major corpora'ons. 460 na'onal members, represen'ng largest US corpora'ons In 2009, NMSDC members purchased more than $101 billion from minority businesses. chains. 7

8 LEADING COMPANIES LEVERAGE SUPPLIER DIVERSITY IN CANADA

9 CAMSC CORPORATE MEMBERS Automo:ve and Industrial Acklands Grainger Boeing Chrysler* Flex- N- Gate General Motors Johnson Controls* Linamar Livingston Interna'onal Mar'nrea Toyota Motor Manufacturing Vari- Form Visteon Consumer and Business Products Cogon Candy Grand & Toy* Rideau Recogni'on Wal- Mart Facili:es Management BLJC GDI Services Robinson Solu'ons Team Industrial Food & Beverage Campbell s Soup CocaCola Enterprises Kellogg Krao PepsiCo Financial and Business Services Accenture* BMO Financial Group CIBC Ernst & Young MasterCard Modis (formerly Ajilon) RBC Financial Group* TD Bank Financial Group UPS Hospitality Marriog Hotels Informa:on & Communica:on Technologies Alcatel- Lucent Cisco* DELL* HP * IBM Canada* Research in Mo'on* TELUS* Xerox* Pharmaceu:cal Pfizer Merck & Co. * Charter Member 9

10 OUR SERVICES TO MEMBERS Cer:fica:on of Aboriginal and minority owned enterprises Diversity Business Marketplace Supplier Diversity baseline survey tool Networking events and business opportunity fairs Access to industry best prac:ces; peer to peer networking and learning Toolkits include: Best Prac'ces in Supplier Diversity; Guidelines for a Second Tier Ini'a've Advocacy, training and technical assistance workshops to strengthen supplier businesses and diversity programs Media exposure to your success stories 10

11 THE DIVERSITY BUSINESS MARKETPLACE powered by A mul:- faceted tool that allows you to: 1. Search CAMSC s na:onal database of cer:fied suppliers Based on company name, keyword, loca'on, commodity category, or NAICS code Lis'ng includes a detailed marke'ng profile, as well as ownership characteris'cs - aboriginal/minority/women- owned Diversity Business Directory: Self- iden'fied aboriginal and minority owned suppliers that can view business opportuni'es but will only be able to access bid response details once they register for cer'fica'on

12 THE DIVERSITY BUSINESS MARKETPLACE powered by 2. SupplierFind: Invite suppliers to upcoming opportuni:es Reach out to CAMSC cer'fied suppliers to clarify addi'onal qualifica'ons or requirements Anonymously post upcoming opportuni'es to iden'fy and prequalify a prospec've pool of aboriginal or minority- owned suppliers Post from a few sentences to a full RFP CAMSC collects and sends you profile responses. You may also choose to have them respond directly to you.

13 BASELINE SURVEY TOOL Determine your current level of diversity in your exis:ng supply chain: Iden'fy Aboriginal, minority or women- owned suppliers, in order to Assist in mee'ng your current repor'ng requirements, as well as Help you develop realis'c supplier diversity program goals The Baseline Survey Tool offers you: Sample policy statements to comply with Special Program guidelines of the provincial Human Rights Commission A tested survey tool that ensures protec'on of your suppliers confiden'al data Opportunity to verify and improve the quality of your supplier informa'on 13

14 CAMSC ACHIEVEMENTS Over the past 6 years: 65 major corpora:ons as members Developed the Diversity Business Marketplace, a na'onal on- line database of aboriginal and minority suppliers and SupplierFind outreach tool More than $239 million in contracts and millions more in :er two opportuni:es Successful Diversity Procurement Fairs and Business Achievement Awards that have led to contract awards CAMSC success stories on our website: 14

15 SUPPLIER CERTIFICATION Must Be at least 51 % Aboriginal or Minority- owned and operated Must be a for- profit business, located in Canada Operate in Canada Be able to operate as a supplier of products or services to other businesses The owner(s) must be a Canadian ci:zen(s) or US ci:zen(s) Aboriginal: Defined as First Na'ons, Me's or Inuit (Sta's'cs Canada) Visible Minority: Defined as persons non- white in colour and non caucasian in race. Visible minority classifica'ons include: Chinese, South Asian, Black, West Asian, Filipino, South East Asian, La'n American, Japanese, Korean 15

16 CERTIFICATION BENEFITS Market access tool In the past six years, CAMSC corporate members have spent more than $240 million with CAMSC cer:fied suppliers, and millions more through Tier 1 suppliers Corporate members request cer'fica'on to know their investments in supplier inclusion are reaching the intended businesses, and therefore have a greater likelihood of achieving their business objec'ves. 16

17 THE DIVERSITY BUSINESS MARKETPLACE A mul:- faceted tool: Complete CAMSC cer'fica'on online Online lis'ng of CAMSC corporate business opportuni'es Search for other aboriginal and minority suppliers for business and alliance opportuni'es Daily alert of public sector bids and CAMSC business opportuni'es

18 BUILDING A SUPPLIER DIVERSITY PROGRAM Establish Executive Support Develop / communicate the internal business case Develop Corporate Policy (Shell, Cisco, Pfizer) Analyze your Purchasing Spend to Identify Opportunities Upcoming RFPs (12-24 months) Local suppliers/logistical benefits Risk threshold (indirect/direct ) 18

19 BUILDING A SUPPLIER DIVERSITY PROGRAM CONT D Develop your Inclusion Methodology Review certified supplier list (or request referrals) during development of each sourcing event Inform suppliers about your supplier diversity program on your website Ask ownership questions during sourcing events 19

20 HOW CAN WE ASK OWNERSHIP QUESTIONS? All provinces, including Newfoundland, have sec'ons of the Human Rights Code that allows companies to implement Special Programs: that might otherwise be considered discriminatory, if the programs are designed to: (i) relieve hardship or economic disadvantage, or (ii) assist disadvantaged persons or groups to achieve equal opportunity 20

21 SPECIAL PROGRAM IN PRACTICE visible minority- owned and women- owned suppliers. Ask op4onal ownership ques:ons during sourcing events - Encourages suppliers to self- iden'fy and begins valuable discussions with Tier 1 (prime) suppliers 21

22 BUILDING A SUPPLIER DIVERSITY PROGRAM CONT D strategies to include diverse suppliers; inform, train and mentor as possible Develop Supplier a Development Second Tier Program Opportuni:es Look at exis'ng supplier development and partnership strategies to include diverse suppliers; inform, train and mentor as possible Develop a Second Tier Program 22

23 CERTIFICATION BENEFITS Market access tool In the past six years, CAMSC corporate members have spent more than $240 million with CAMSC cer:fied suppliers, and millions more through Tier 1 suppliers Corporate members request cer'fica'on to know their investments in supplier inclusion are reaching the intended businesses, and therefore have a greater likelihood of achieving their business objec'ves. 23

24 KEY NETWORKING EVENTS Diversity Procurement Fair April 10-11, 2012 Annual tradeshow which includes buyer- supplier matchmaker, as well as corporate workshops on building supplier diversity programs; Business Achievement Awards September 27, 2012 Major awareness event agrac'ng government and senior corporate agendance, as well as Aboriginal and minority business and poli'cal leaders 24

25 April 10 th & 11 th Featuring: > 50 Corporate/Government Buying Organizations Strategic Sourcing Roundtables One to One Matchmaker Appointments Best Practices Workshops

26 CONTACT CAMSC For more informa'on, please contact: Membership: Ka4e Mo7a Director, Business Development & Partnerships CAMSC 95 Berkeley St. Second Floor Toronto, ON M5A 2W8 T: F: W: Events: Danielle Tomarelli Manager, Events, Marke'ng and Memberships CAMSC 95 Berkeley St. Second Floor Toronto, ON M5A 2W8 T: F: W: 26