DOES IT HAVE TO BE DIFFICULT?

Transcription

1 SUPPLIER DIVERSITY DOES IT HAVE TO BE DIFFICULT? Triangle Chapter ISM - CV February 21, 2012 Presented by: Jackie LaJoie, Vice President, Corporate Development Carolinas Minority Supplier Development Council

2 About CMSDC One of 37 regional councils in a national network CMSDC promotes and facilitates business relationships between the public/private sector and certified minority-owned businesses. African American Asian American Hispanic American Native American 170 Corporate Members Local 3,600 Corporate Members Nationally 480 Certified Minority Businesses Local 16,000 Certified Minority Businesses Nationally 3/2/2012 2

3 Our Focus Drive sustainable value for corporate/public sector members through an integrated and innovated delivery approach, centered on Certifying qualified and capable MBE suppliers Building / strengthening supplier capacity Building / strengthening supplier diversity programs Increasing the supplier diversity business case discussion and value proposition within the community

4 The External Business Case Supplier Diversity equips rapidly growing segment of minority households so they can purchase products/services. $ External Purchases Big Business $ Revenues Suppliers/Employers (Minority Firms*) Products/Services $ Wages & Salaries Individual Households $ Consumer Purchases *Minority firms hire minority workers to a greater extent than majority firms.

5 Ethnic Group NC People of Color 35.7% White 65.3% Hispanic 8.4% Black 21.5% Asian 2.2% Native American.1% 2 or More 2.2% The Consumer Marketplace is Changing

6 The Corporate Business Case Support Government contracts - $XB Support Commercial contracts - $XB Build brand loyalty & brand visibility Reduce costs / Increase revenue / Leverage innovation Demographic shift 107+ million minorities in U.S. today Support wealth creation in the communities in which we do business

7 Business Case Build brand loyalty & brand visibility Reduce costs / Increase revenue / leverage innovation Demographic shift 107+ million minorities in U.S. today Support wealth creation in the communities in which we do business Support Commercial contracts - ~$XB Support Government contracts - ~$XB combined companies Use to notate good/bad, etc Program Focus Increase Diversity % / $ Increase 2 nd Tier Results Increase Internal Awareness & Support Mentor Program w/ Division Support Government Requirements Small Business Categories External Outreach Globalization of Program Stakeholder Support Active sponsorship of Program Drive ownership and accountability throughout enterprise Create inclusive sourcing strategies that result in diverse business growth and support government requirements with small businesses

8 RGMA Scale 5 Levels to World Class Level 1 Beginning Program Level 2 Basic Program Level 3 Traditional Program Level 4 Advanced Process Level 5 Best in Class Process A contact person to answer phone calls No Tracking System Part-time diversity business coordinator Program Brochure Visible Program Manager Some Program Collateral Materials Program Director Internal and External Identity Packages Program Director Communications Plan No Materials Subcontracting Plans Limited Program Tracking Measurement by business unit Measurement of revenue contribution No Trade Fairs No Budget No Outreach Limited Trade Fair Participation Compliance Driven No Ownership Local/National Diversity Business Organization Memberships Little Senior Management Involvement Outside Core Strategy Diverse Vendors company-wide Involved Senior Management Tied to Procurement Objectives Mission critical joint ventures and strategic alliances Senior Management Leadership Tied to performance Objectives company-wide 8

9 1. Establish Corporate Policy and top corporate management support 2. Develop a corporate minority supplier development plan 3. Establish comprehensive internal and external communications 4. Identify opportunities for MBEs in strategic sourcing and supply chain management 5. Establish comprehensive minority supplier development process 6. Establish tracking, reporting and goal-setting mechanisms 7. Establish a continuous improvement plan 8. Establish a second tier program

10 Heavy workload multiple projects at the same time Integrate systems and processes, move quickly, capture the value. Systems specific - focus on adoption, broad user base and global compliance (managing 50% or even 80% of spend is just not good enough anymore). Your customer wants it NOW! Process / policy driven. Often your time is eaten up by fixing what someone else broke. Task forces, committees, teams, meetings, etc. compete for your time. And now Supplier Diversity???

11 IT Professional Services Facilities Management Direct Materials Research Marketing Printing Construction Do opportunities exist in these areas of Procurement? Can it be done?

12 If I do Supplier Diversity, I cannot meet my savings goals? Fiction MBEs are often smaller, have lower operating costs, move faster than large corporations, and bring innovation to the table, and drive competition in the supply chain.

13 There are no MBEs who can compete for the products/services I procure. Maybe Think about carving out a geographic area or a part of the bigger service provided. Definitely consider 2 nd tier. Consider utilizing the prime supplier services to help you develop your Supplier Diversity program.

14 We have a government compliance program and a commercial subcontracting plan. As long as we file our reports, no one really cares if we make the goals. Fiction be very careful Liquidated damages clauses are now being included in some government contracts. Make sure you know the requirements.

15 I don t have time to hunt a minority owned business to include in my RFPs Could be true BUT Carolinas MSDC can be your partner in identifying qualified suppliers. Member corporations can utilize our staff and resources to find suppliers, create networking events at your site, or even provide training for your staff.

16 During negotiations, my prime supplier responded N/A in the Supplier Diversity requirements section. There s nothing I can do. Fiction First be sure to include Supplier Diversity in the RFP and weight the response. Push back! Create a competitive advantage for prime suppliers who support your commitment to Supplier Diversity (not added costs but innovative solutions)

17 How CMSDC Moves the Numbers Building Relationships Provide a sustainable, certified diverse supplier base for procurement solutions Increase MBE access to procurement opportunities Expand base of potential customers for MBEs Offer strategic, efficient and economical networking opportunities Building Capacity Provide unique training for supplier diversity advocates and procurement professionals MBE training centered around bringing value to supply chains and increasing competitiveness Third party MBE certification nationally accepted by more than 3,600 corporations and public sector organizations 3/2/

18