Contenu connexe Similaire à Supplier Diversity in a Box for Suppliers (20) Supplier Diversity in a Box for Suppliers1. What is Supplier Diversity in a Box?
• We give you what you need to create a supplier diversity program
in a fraction of the time and cost of doing it on your own.
• Our team of practicing subject matter experts lead you through:
• Supplier Diversity basics
• What are the processes, and how to use enriched spend?
• How to identify baseline spend and importance?
• Finding your diverse suppliers and identify new ones?
• Importance of certification
• How do you demonstrate the value of the program?
• Metrics to monitor progress and set goals
© SourceOne Innovations, Inc. All Rights Reserved.
2. Where will we meet?
Right here, online!
© SourceOne Innovations, Inc. All Rights Reserved.
3. When will we meet?
© SourceOne Innovations, Inc. All Rights Reserved.
• Meet online in private, virtual, “conference room”
• Front end, consecutive, training over six sessions
• Morning classes
• Assignments
• Mastery exercises
• Twelve month relationship
We will give you:
Best Practices
Policies
Procedures
Tools
4. Why Supplier Diversity in a Box?
• Most people know why Supplier Diversity is important – but some
primes don’t see it as an imperative or know how to
• Customers are complaining about lack of tier 2 spend reporting
• Not being belligerent just don’t know how
• Knowing how will benefit your company:
• Use it as a competitive edge in the marketplace
• Help drive generational wealth amongst diverse suppliers
• Measure Return-on-Investment (ROI)
• Enhance company’s image
© SourceOne Innovations, Inc. All Rights Reserved.
5. How Will We Accomplish the Goal?
© SourceOne Innovations, Inc. All Rights Reserved.
6. © SourceOne Innovations, Inc. All Rights Reserved.
Meet the Instructors
Bill Hooker: President, SourceOne Innovations, Inc.:
Elements for building a Supplier diversity foundational
program, methodology and introduction to data
analytics. Bill@Bill-Hooker.com P: 215-595-7503
David Ricciardi: President, Proximo: Data analytics and
the steps required for submitting spend files for
enrichment. Dricciardi@Proximo.com P: 917-881-5302
Heather Cox: Owner and President, Certify My Company:
Why third-party supplier diversity certification is critical,
the steps necessary for certification and program
certification offer. heather@certifymycompany.com
P: 551-795-5395
7. © SourceOne Innovations, Inc. All Rights Reserved.
What’s Our Role??
• Best practices for supplier diversity programs
• History, processes and procedures
• Policy review to support supplier diversity internally
• Spend enrichment
• Help develop baseline spend
• Dashboard, website development (hosted for 12 months)
• Certification assistance and facilitation
• Outreach to find diverse suppliers and organizations
• In-program consulting (limited benefit)
• Sources for additional assistance
8. © SourceOne Innovations, Inc. All Rights Reserved.
What’s Your Role??
• Participate (in class and OUT)
• Complete all assignments on time
• Get clarity—ask questions and lots of them
• Absorb (this is not difficult!)
• Talk program up throughout organization
• Secure executive leadership endorsement
And…remember just 5 things…
9. Remember Five Things
1. Accurate and total spend data is critical
2. Supplier diversity is a competitive advantage
3. Top/Down program endorsement is optimum
4. Tier 2 diverse spend reporting is required by customers
5. Outreach programs support company SD programs
© SourceOne Innovations, Inc. All Rights Reserved.
Over 10% of All RFP’s Require Supplier Diversity (SD) Reporting
YOU US
10. Value of a Supplier Diversity Program??
• Most people know why Supplier Diversity is important – but some
primes don’t see it as an imperative or know how to
• Customers are complaining about lack of tier 2 spend reporting
• Primes are not being belligerent just don’t know how
• Knowing how will benefit your company:
• Use it as a competitive edge in the marketplace
• Help drive generational wealth amongst diverse suppliers
• Measure Return-on-Investment (ROI)
• Enhance company’s image
© SourceOne Innovations, Inc. All Rights Reserved.
11. © SourceOne Innovations, Inc. All Rights Reserved.
Government Contracts? ($750K SBA Sub-Contracting Plan/$1.5M
Construction projects)
Customer Requirements? (10% sales required diverse spend
reporting)
Company culture? (Executive leadership initiative)
Other?
What Brings Us Here Today?
12. Supplier Diversity Program Development
Project Plan Element List
(For Illustration Purposes)
• Phase A (Approval):
SOW/Project Plan submission
SOW/Project Plan approval
Travel policy/system access/start date/building access/internal communication
Change Management (CM) #1: Executive message
CM #2: Procurement message
• Phase D (Discovery):
Spend aggregation discussion
POC to validate spend approach
Data analytics provider selection RFI
Approval for data scrubbing approach
Extract spend data for enrichment
Validate/create technical document for data retrieval steps
Assure that spend extraction process is reproducible
Determine frequency of data scrubbing
Data sent for scrubbing
Analyze report from 3P data analytics provider, prepare report fo SC review
© SourceOne Innovations, Inc. All Rights Reserved.
13. • Phase E (Execution):
Supplier Diversity Program Development
Project Plan Element List, Cont.
(For Illustration Purposes)
Supplier Diversity Coordinator
Steering Committee and Sponsor resource assignment
Supplier Diversity (SD) core group approval
Core team training (SD Coordinator, Procurement, CM's?) WIIFM
Change management program development
Website modification discussion/action plan
Portal requirements and viewing rights
CM #3: Workforce message
Present spend findings to SC for review and approval
Identiy and join selected national diversity organizations, local programs, conference planning
Validate spend with Category Managers/assing contract and ratings task
CM #4: Workforce soft launch/presentation/venue selection
Category manager program overivew and mini-training
ID supplier diversity target categories, spend goals, and present to SC for approval
CM #5: Supplier diversity training to category managers and super users
Review Category Manager ratings and contract expiry dates
Adjust addressable spend value based on above
CM #6: Supplier diversity program update to workforce and suppliers
CM #7: Communicate program goals/to workforce, HQ and SUPPLIER base
CM #8: Global SD update
Determine Tier 2 applicability
Identify diverse suppliers that are not yet registered for outreach by SD Coordinator
Provide outreach to suppliers that are suspected to be diverse yet haven't registered.
Review addressable spend against category diversity opps
Communicate diverse supplier base with Category Managers
CM #9: Media outreach
Identify qualified diverse suppliers from ratings outcome. Report on portal for search
Engage procurement/Category Managers for next steps for inserting diverse supplier
Document (e.g. PO, RFP, MSA, et al) review of existing supplier diversity language. Make verbiage recommendations/Legal
Create RFX tracking device to store diverse supplier utilization on RFx and other spend events
CM #10: Diverse supplier fair/meeting/networking event
CM #11: Supplier diversity update/workforce/HQ/Media and external go-live
14. © SourceOne Innovations, Inc. All Rights Reserved.
Can generate a 133% greater prgoram ROI versus those
firms that don’t,
Drive an additional $3.6 M increase to bottom line for
every $1 M spent in procurement operating costs,
Companies allocating 20% or more spend to diverse
suppliers attribute 10%-15% of their annual sales to SD
programs.
A Hackett Group study found that companies with a
diverse supplier base program…
The Hackett is a 27 year old intellectual property-based
strategic consultancy that has completed more than
15,000 benchmarking studies with major corporations
and government agencies, including 97% of the Dow
Jones Industrials, 89% of the Fortune 100, 87% of the
DAX 30 and 59% of the FTSE 100. Title slide comment,
Hackett, 2015
15. © SourceOne Innovations, Inc. All Rights Reserved.
• Understand what Supplier Diversity (SD) is, how/why did it get
started, where is it going, and why does it matter?
• Create understanding around Company objectives
• Clarify misconceptions of supplier diversity programs and diverse
suppliers
• Understand the mechanics of a supplier diversity program
• Learn about your supplier diversity spend and what to report to
customers
• Why meaningful spend insights and supplier certification are critical?
• Learn best practices …
Program Objectives
16. © SourceOne Innovations, Inc. All Rights Reserved.
• Session 1 (week 1): Program basics, Supplier Diversity “ground level”
• Session 2 (week 2): Five steps to Success, Baseline spend, Tier 1 and Tier 2
• Session 3 (week 5): Spend enrichment, Website, Portal, Reporting
• Session 4 (week 6): Portal, Website, Spend reporting, continued
• Session 5 (week 7): All about certification and why it is critical
• Session 6 (week 8): Supplier ID, Baseline spend, Benchmarking, Metrics, Docs
Program Snapshot
17. Best Practices for You
• Supplier Diversity Facts vs. Myths
• Understand Compliance and Market driven program models
• Five steps to building a great Supplier Diversity program
• Identifying meaningful spend insights for reporting
• Sourcing and tracking Tier 1 and Tier 2 spend
• Diversity spend analytics – baseline spend and enrichment
• Policies and documentation supporting diversity
• Communications and effective outreach
• Measuring program effectiveness
© SourceOne Innovations, Inc. All Rights Reserved.
18. © SourceOne Innovations, Inc. All Rights Reserved.
A Supplier Diversity program is a proactive business [strategy]
which encourages the use of minority-, women-, veteran/[service
disabled]-, LGBT-owned, HUBZone, and SBA defined small
business concerns, as suppliers…Supplier diversity programs
recognize that sourcing products and services from previously
under-[represented] suppliers helps to sustain and progressively
transform a company’s supply chain, [build corresponding
community generational health, and] thus quantitatively reflects
the demographics of the community in which it operates by
recording transactions with diverse suppliers.
Supplier Diversity Defined
Source: Wikapedia/Source One
19. © SourceOne Innovations, Inc. All Rights Reserved.
J& J Supplier Diversity
We recognize the importance of having a diverse
supplier base that reflects our patients and customers
around the world. By working with small and diverse
suppliers, we tap into new ideas that add value to our
businesses and provide innovative solutions to our
marketing, manufacturing and research &
development efforts. Our Supplier Diversity Program
helps us attract qualified small and diverse suppliers to
support our business needs. *
* J&J Website
20. © SourceOne Innovations, Inc. All Rights Reserved.
J&J Supplier Diversity Statement
“We believe that when our supplier base reflects
the diversity of the consumers and patients who
use our products and services, we achieve our
missions of helping people live longer, happier,
healthy lives.”
-Len De Candia, Chief Procurement Officer, J&J
21. Supplier Diversity Drivers
* The Hackett Group “Top Supplier Diversity
Programs…2016”/CVM 2017 State of Supplier
Diversity© SourceOne Innovations, Inc. All Rights Reserved.
“…In fact, up to 10 percent of sales come with supplier diversity requirements, suggesting that
the lack of such a program can even result in lost revenue…” *
61%
74%
64%
39%
37%
42%
49%
Gov. Compliance
Supplier Development
Enhance image
Mirror Customers Base
Align with Corp Culture
Corp. Social Resp.
Customer requirements
Revenue
Enablers
22. Diversity and Inclusion Programs
© SourceOne Innovations, Inc. All Rights Reserved.
SupplierDiversity
WorkforceDiversity
D&I
• Employee Focused
• Usually a HR function
• Supplier Focused
• Usually a Procurement function
Both Programs Have “Diversity” Focus but Are NOT the Same!
23. © SourceOne Innovations, Inc. All Rights Reserved.
Supplier Diversity Started in the U.S.A.
1969 1970 1980s 1990s 2000s 2010
Pres. Nixon signs
EO 11458
- MBDA 1971
- NMSDC 1972
- SBA loans for MBEs
- Gov’t. begins reporting
- SBA expands focus MBE
- WBENC 1997
- Corp. programs grow
- SD profession grows
- NGLCC 2002
- SBA expands focus MBE
Move from Compliance
to Market Driven Program
Source: RGMA
Other Countries with Supplier Diversity Programs are Geared to Ethnic Minorities.
24. © SourceOne Innovations, Inc. All Rights Reserved.
Supplier Diversity…What it isn’t?
Aren’t
Supplier Diversity
programs really
affirmative action
programs left over
from the 80s?
26. Independent
business that is at
least 51% owned,
controlled,
managed and
operated by a
person that is…
WBE: Women
Owned
MBE: Asian
Indian/Pacific,
Black, Hispanic,
Native
American
LGBTQ:
Lesbian, Gay,
Bisexual,
Transgender
SD/VOSB: Service
Disabled/Veteran
SDB: Disable
American
and/or
Veteran’s with
disability
HUBZone: 35%
of employees
reside in a
Historically
Underutilized
Business zone
Major National Diversity Categories
There May be State and Local Certification Requirements
© SourceOne Innovations, Inc. All Rights Reserved.
27. Supplier Diversity Statistics
© SourceOne Innovations, Inc. All Rights Reserved.
The combined “buying power” of Hispanic, LGBT, African
American, and Asian American-owned businesses is now
about $4.3 trillion dollars ConnXus, SourceOne Innovations 2017
Yet, why don’t we feel wealthier?
28. Supplier Diversity Statistics
“Of the more than $30 trillion in annual revenue generated by all
U.S. firms, nearly 60% is generated by a small group representing
less than one-tenth of 1 percent of the U.S. population. While
minority and female-owned firms represent more than 50 percent
of the business population, these firms generate just over 6
percent of the total revenue.” The Brutal Facts About Supplier Diversity, Wharton Magazine, May 5, 2014
“What’s even more troubling is the fact that the needle for
minority firms hasn’t moved since 1997. While total revenue for all
U.S. firms grew 65 percent between 1997 and 2008, from $18.6
trillion to $30.7 trillion, the portion of total revenue generated by
minority firms only grew from 2.7 percent to 2.8 percent over the
same time period.” The Brutal Facts About Supplier Diversity, Wharton Magazine, May 5, 2014
© SourceOne Innovations, Inc. All Rights Reserved.
29. Diverse Business Demographics
© SourceOne Innovations, Inc. All Rights Reserved.
Sources: US Census Report 2012
and CVM
WOMEN MINORITY HISPANIC BLACK LGBT ASIAN VETERAN
# Firms 12.3 M (+3000%) 8.0 M (+38.1%) 3.3 M (+46.3%) 2.6 M (34.5%) 1.4 M 1.9 M (+23.8%) 2.5 M
% Non-
Employer*
89.5% 88.6% 91.3% 95.8% N/A 74.9% N/A
% of US
Firms
35.8% 28.8% 12.0% 9.4% <1.0% 6.9% 9.1%
Receipts $1.8 T $1.4 T See “Minority” See “Minority” $1.7 T See “Minority” N/A
* = No paid employees
© SourceOne Innovations, Inc. All Rights Reserved.
A joint report form the U.S. Census Bureau of MBDA shows that
minority-owned businesses continue to outpace the growth of majority-
owned firms. (December 2014)
30. © SourceOne Innovations, Inc. All Rights Reserved.
Diverse Community Buying Power
Minority Business Enterprises (MBE) Buying Power: *
• Hispanics: 1.3 T
• Blacks: $1.1 T
• Asians: $770 B
• Native Americans: $100 B
Women Business Enterprises (WBE)
• $20 T **
Veteran/Service Disabled Enterprises (SD/VOSB)
• $19.8 B ***
LGBT Business Enterprises (LGBT)
• $ 917 B ****
*= Source: UGA Today. “Minorities Energize U.S. Consumer Market 30 September 2014
**= Source: Muhtar Kent, Chairman of the Board and CEO, The Coca-Cola Company, October 2010
*** Source: Eric Foutch, Red Branch Media, digital media manager
**** Source Forbes/Kantar Consulting, August 14, 2018
31. © SourceOne Innovations, Inc. All Rights Reserved.
Why does Supplier Diversity matter?
• Fosters generational wealth and understanding of local community
• Impacts business volume by driving market penetration
• Supports business partner diversity initiatives
• Improve brand positioning
• Increases bank of talent
• Decreases costs
• Increases creativity
• Enhances public image
Supplier Diversity Programs Are Moving from
Compliance Driven to Market Driven
32. © SourceOne Innovations, Inc. All Rights Reserved.
Compliance v. Market Driven Programs
• Federal: Compliance driven. All companies with government
contracts in excess of $700 K ($1.5 M for construction jobs):
• Must have a supplier diversity program
• Annual reporting and plan to DOD
• Contracts cancelled for non-compliance
• Interested in small, diverse businesses
• Office of Federal Contract Compliance Programs (OFCCP)
• Public: Market driven. Diverse communities demanding that
companies they buy from, buy from their communities.
• Will switch and buy from companies that support their
communities
• Effectively cancelling their contract!
• Interested in all diverse businesses
33. © SourceOne Innovations, Inc. All Rights Reserved.
Organizational Structure “Inventory”
• Supplier Diversity (SD) supporting?
• If “yes”, what is the structure currently?
• How long has the company and SD program existed?
• Support for SD?
• Executive support?
• Major customers?
• Where do you see a SD helping your company?
34. Supplier Diversity as Revenue Enabler and
Positive ROI Generator
Return On Investment = Investment Revenue x CF*-Investment Cost
Investment
* CF (Contribution Factor): 1-5%
© SourceOne Innovations, Inc. All Rights Reserved.
- Only ~ 25% of companies measure Supplier Diversity ROI
- Company’s with supplier diversity programs can identify
10-15% of sales being directly related to program!
35. © SourceOne Innovations, Inc. All Rights Reserved.
Five Steps to Building a
Supplier Diversity Program
Engage(d) and supportive senior leadership
Realistic diversity goals and accurate tracking
Enriched spend data and realistic goals enriched with
meaningful insights
Supplier diversity website with onboarding portal and info
sharing
Effective diverse supplier outreach with national and local
diversity organizations
36. Supplier Diversity Statistics
The combined “buying power” of Hispanic, LGBT, African
American, and Asian American-owned businesses is now
about $4.3 trillion dollars ConnXus, SourceOne Innovations 2017
“…Yet, why don’t we feel wealthier?...”
40. Assignment, part I (Due in 5 business days)
• Spend file ALL SPEND—EVERY LAST CENT!
• Spend for (using PO’s, EFT, P-Card—Everything!):
• Goods and Services
• Support (IRS, health care, charities,
organizations, etc.)
• Regular Excel-like type flat file
• Must include:
• Complete customer name
• Address (City, State, Zip)
• Nice to also have:
• EIN (Employer Identification Number)
• Spend Category
• Known diversity status
41. Assignment, part II (Due in 5 business days)
Produce all documentation that refers to and/or supports
Supplier Diversity, including:
• Purchase orders
• RFx documents
• Contracts
• Marketing brochures
• Website references
• Any others…
45. © SourceOne Innovations, Inc. All Rights Reserved.
What is it? Why does it Matter?
Diverse
Supplier
Non-
Diverse
Supplier
Tier 1 Tier 2
Customer
Diverse
Supplier
Tier 2 should become the new Tier 1
Customer
Diverse
Supplier
Diverse
Supplier
48. Excel Spreadsheet Detail
© SourceOne Innovations, Inc. All Rights Reserved.
SUPPLIER_NAME SUPPLIER_SITE_ADDRESS Spend SUPPLIER_ID NAME LOCATION DIVERSITY ATTRIBUTES YEAR EST.EMPLOYEES SALES STATE POSTALCODE COUNTRY PHONE CONTACT_NAME CONTACT_TITLE CONTACT_EMAIL
1 ALLIANCE GEOMATICS 1261A 120TH AVE NE,,,BELLEVUE,WA-98005 6,243$ 100557314 1 ALLIANCE GEOMATICS LLC SEATTLE, WA MBE DBE SMALL SDB 2012 1-10 less than $500K WA 98188 USA JAYBYRD jay.byrd@1-alliance.com
105 WEST INC 4201 E YALE AVE., SUITE 230,,,DENVER,CO-802221,628$ 101271561 105 WEST, INC. DENVER, CO DBE SMALL CO 80222 USA ROBERT MAESTAS rmaestas@105westinc.com
24 HR SAFETY P.O. BOX 4356, DEPT. 1561,,,HOUSTON,TX-77210 320$ 101245337 24 HR SAFETY, LLC DEER PARK, TX WBE SMALL SDB 2005 TX 77536 USA
2IM GROUP LLC 118 SOUTH CLINTON ST, SUITE 350,,,CHICAGO,IL-60661940$ 100789258 2IM GROUP, LLC CHICAGO, IL MBE DBE SMALL SDB 2005 IL 60661 USA
2M ASSOCIATES LLC 5930 PRESTON VIEW BLVD., SUITE A,,,DALLAS,TX-7524024,867-$ 101371707 2M ASSOCIATES, LLC DALLAS, TX MBE DBE SMALL TX 75240 USA AHSAN MOEEN info@two-mm.com
HOUDAL CORP DBA 2M BUSINESS2630 NOVA DRIVE,,,DALLAS,TX-75229 68$ 100600824 2M BUSINESS PRODUCTS, INC DALLAS, TX MBE DBE 1980 TX 75229 USA ALI MAMDANI ali@2mbp.com
2M BUSINESS PRODUCTS 2630 NOVA DRIVE,,,DALLAS,TX-75229 175$ 100600824 2M BUSINESS PRODUCTS, INC DALLAS, TX MBE DBE 1980 TX 75229 USA ALI MAMDANI ali@2mbp.com
360 MEDIA INC 5161 EAST ARAPAHOE ROAD, SUITE 405,,,CENTENNIAL,CO-80122700$ 101870701 360 MEDIA LLC ENGLEWOOD, CO WBE SMALL WOSB 1998 CO 80112 USA
3Z TELECOM INC 3361 EXECUTIVE WAY,,,MIRAMAR,FL-33025 220$ 880101497 3Z TELECOM, INC. MIRAMAR, FL MBE $10M-50M FL USA (954) 581-6565 edalmazzo@3ztelecom.com
4D TECHNOLOGIES 360 ROUTE 101, BLDG. #2,,,BEDFORD,NH-03110 78-$ 100682598 4D TECHNOLOGIES BEDFORD, NH SMALL 2003 1-10 $1M-10M NH 3110 USA DAN DOLAN dan.dolan@cadlearning.com
4WARD PLANNING INC 21 LAFAYETTE STREET,,,HOPEWELL,NJ-08525 847$ 101629891 4WARD PLANNING, INC. HOPEWELL, NJ MBE DBE SMALL SDB 2008 NJ 85251815 USA TODD J POOLE
METRO CATERING P. O. BOX 146800,,,BOSTON,MA-02114 106-$ 100463101 A & R FOOD SERVICE CORP BOSTON, MA SMALL 1995 51-200 $1M-10M MA 22101 USA ANTHONYNTA info@gometro.com
From the Basic Enrichment Report, To…
52. Economic Impact
• How many jobs per state does
my spend create?
• What are the diverse statuses of
the people that hold those jobs?
• How much tax revenue do these
jobs generate?
• Is my diverse spend saving the
company money?
• Do my suppliers think our
Supplier Diversity program is
helping them grow?
© SourceOne Innovations, Inc. All Rights Reserved.
Jobs Maintained Through Diverse SpendJobs Maintained Due to Diverse Spend
Suppliers Who Believe Your Company Enables Them to Grow
54. Types of Spend Reports for Customers
• Tier 1 & Tier 2 spend
• By diversity category (WBE, LGBT, MBE, SD/VOSB, DBE, etc.
• By spend category
• Spend change over previous enrichment cycle
• Percent goal accomplishment over proposed goal
• Economic Impact (EI) reporting
• Others??
55. Tier 2 Factoids
• Some companies are still using Excel to track
• Others (more informed) are using third parties to track
• Reporting diverse spend that supports customer products
• Quarterly (one month lag) reporting will go to yearly
• 5-30% of customers set Tier 2 goals (will grow steadily)
Source: 2016 Diversity Best Practice, February 2016
© SourceOne Innovations, Inc. All Rights Reserved.
56. Categories with High Sub-Contracting
• Staffing services: 76%
• Facilities (rent, real estate, facilities, security, etc.): 67%)
• IT Hardware: 39%
• Office supplies and equipment: 28%
• Software: 28%
• Printing, postage, fulfillment, handling: 22%
• Marketing and HR services: 17%
• Travel services: 11% *2016 Diversity Best Practices
© SourceOne Innovations, Inc. All Rights Reserved.
57. How to Find Diverse Suppliers?
• Search engine capabilities (year 1 part of program)
• Attend out reach events
• Linked In groups
• Sponsor diverse supplier day
• Communicate internally to build adoption
• Professional membership to access their membership
• Advertise (LI, Google, Twitter, FB, Digital, etc.)
58. • Phase A (Approval):
© SourceOne Innovations, Inc. All Rights Reserved.
Supplier Diversity Program Development
Project Plan Element List
(For Illustration Purposes)
SOW/Project Plan submission
SOW/Project Plan approval
Travel policy/system access/start date/building access/internal communication
Change Management (CM) #1: Executive message
CM #2: Procurement message
• Phase D (Discovery):
Spend aggregation discussion
POC to validate spend approach
Data analytics provider selection RFI
Approval for data scrubbing approach
Extract spend data for enrichment
Validate/create technical document for data retrieval steps
Assure that spend extraction process is reproducible
Determine frequency of data scrubbing
Data sent for scrubbing
Analyze report from 3P data analytics provider, prepare report fo SC review
59. • Phase E (Execution):
Supplier Diversity Program Development
Project Plan Element List, Cont.
(For Illustration Purposes)
Supplier Diversity Coordinator
Steering Committee and Sponsor resource assignment
Supplier Diversity (SD) core group approval
Core team training (SD Coordinator, Procurement, CM's?) WIIFM
Change management program development
Website modification discussion/action plan
Portal requirements and viewing rights
CM #3: Workforce message
Present spend findings to SC for review and approval
Identiy and join selected national diversity organizations, local programs, conference planning
Validate spend with Category Managers/assing contract and ratings task
CM #4: Workforce soft launch/presentation/venue selection
Category manager program overivew and mini-training
ID supplier diversity target categories, spend goals, and present to SC for approval
CM #5: Supplier diversity training to category managers and super users
Review Category Manager ratings and contract expiry dates
Adjust addressable spend value based on above
CM #6: Supplier diversity program update to workforce and suppliers
CM #7: Communicate program goals/to workforce, HQ and SUPPLIER base
CM #8: Global SD update
Determine Tier 2 applicability
Identify diverse suppliers that are not yet registered for outreach by SD Coordinator
Provide outreach to suppliers that are suspected to be diverse yet haven't registered.
Review addressable spend against category diversity opps
Communicate diverse supplier base with Category Managers
CM #9: Media outreach
Identify qualified diverse suppliers from ratings outcome. Report on portal for search
Engage procurement/Category Managers for next steps for inserting diverse supplier
Document (e.g. PO, RFP, MSA, et al) review of existing supplier diversity language. Make verbiage recommendations/Legal
Create RFX tracking device to store diverse supplier utilization on RFx and other spend events
CM #10: Diverse supplier fair/meeting/networking event
CM #11: Supplier diversity update/workforce/HQ/Media and external go-live
62. © SourceOne Innovations, Inc. All Rights Reserved.
Outreach Resources
• Nat’l. Minority Supplier Development Council (NMSDC)
1359 Broadway, 10th Floor, Suite 1000
New York, NY 10018
Phone: (212) 944-2430
• Eastern Minority Supplier Dev. Council (EMSDC)
Valarie Cofield/Christine Robertson
2000 Hamilton Street
Suite 308, Philadelphia, PA 19130
Phone 215-569-1005
info@emsdc.org
• Women Business Enterprise National Council (WBENC)
1120 Connecticut Avenue, NW, Suite 1000
Washington, DC 20036
Tel: 202-872-5515
63. Outreach Resources, Cont.
• National Veteran Owned Business Association (NaVOBA)
• Mimi Lohm
420 Rouser Rd #101, Moon, PA 15108
412-269-1663, Ext. 164
mimi.lohm@navoba.com
• National Veteran Business Development Council (NVBDC)
• Keith King
325 E. Crescent Lane, Detroit, MI 48207
888-CERTIFIED
Operations@NVBDC.org
• National Gay and Lesbian Chamber of Commerce (NGLCC)
• Katie Chmielewski
729 15th St. NW, 9th Floor
Washington D.C. 20005
info@NGLCC.org
• Small Business Administration (SBA)
Linda McMahon
Washington, D.C.
800-827-5722
www.sba.gov
66. © SourceOne Innovations, Inc. All Rights Reserved.
• Who to benchmark against and why?
• look toward best-in-class benchmarking. In the case of supplier
diversity, look outside your own industry and evaluate the
processes used by leaders in other industries.
• Setting meaningful, reasonable, achievable goals tied to strategy will:
• Identify weak areas that need improvement;
• Challenge the status quo and discourage complacency;
• Confirm the need for change and provide strong motivation for
change;
• Bringing in techniques from other sectors may give you a competitive
edge over your peers and establishing your organization as a leader.
Benchmark & Goal Setting
67. Benchmark & Goal Setting
© SourceOne Innovations, Inc. All Rights Reserved.
• The “whom” to benchmark against is more challenging. Benchmarking is
both a management tool for process improvement and an internal
learning and sharing tool that continually improves processes by
motivating culture change based on the idea that the company can be
among the best in the world.
• For your organization to be an industry leader, look toward best-in-class
benchmarking. In the case of supplier diversity, look outside your own
industry and evaluate the processes used by leaders in other industries.
Bringing in techniques from other sectors may give you a competitive
edge over your peers and establishing your organization as a leader.
• A note: Benchmarking shouldn't just be about figuring out your target
number; it should also guide you toward establishing the processes and
culture that help you achieve those results throughout the organization.
68. Current Diverse Spend
Spend by Department
Total Spend
20XX Goal
Annual ForecastYTD Spend
Comments/Observations
Additional relevant information associated with goal
attainment.
• Contract expiring in 2018 and is a great time to introduce
diverse suppliers as part of the RFP
Functional
Authority
Bill Hooker
Measure
Tier 1 $M
Tier 2 $M
Total $M
Q1/20XX Q2/20XX Q3/20XX Q4/20XX Q1/20XX 20XX Total
Total 12
months
3.5 6.1 8.7 7.5 5.6 25.8 27.9
0.5 0.5 0.6 0.4 0.6 2.0 2.1
68.6 42.6 58.0 54.2 45.9 223.5 200.7
Top 10 Suppliers by non-diverse and diverse suppliers, YTD, $MM’s
Vendor Name Diverse?
Y/N
% of
Total
Spend
Vendor Name Diverse?
Y/N
% of
Total
Spend
Opportunities Risks
• Business Strategy
• Viable diverse supplier in
market
• Supplier development
potential
• Supplier capabilities*
• Might become a large
suppliers
• Strategic fit for long haul?
$$ $$
Category description:
Integrated Goal Setting Template
© SourceOne Innovations, Inc. All Rights Reserved.
70. “Up to 10% of sales come with supplier diversity requirements” *
• Automotive Industry example
* Source: Supplier Diversity Performance Study,
The Hackett Group 2016
“ All leading US automotive companies have strong supplier diversity
commitment and expect suppliers to support their initiatives through
subcontracting (Tier 2) programs.
The following companies have Tier 2 programs that require suppliers to meet
diversity subcontracting targets of 8% of spend or higher:
Ford Motors
General Motors
Fiat Chrysler
Toyota
Twenty-five percent of all Fortune 500 companies have formal supplier diversity
programs. Tier 2 programs are also being considered in the Federal government
contracting agencies. (Source: MMSDC and Supplier.IO)
72. Certification Requirements are Rigorous
There is a rigorous, multi-step process for certification. While
each certifying agency does certification differently, the
attached is a good example of the typical certification
process below. Please click below, and open attachment.
75. © SourceOne Innovations, Inc. All Rights Reserved.
Planning Execute
Requirement
Planning
Sourcing
Strategy
Development
Demand
Management
Supplier
Selection
Performance
Management
Tracking
Role of
Procurement
Role of Supplier
Diversity
Support identification and ultimate utilization of viable diverse suppliers for procurement
opportunities
• Work with procurement and LOB to determine opportunities
• Review diverse supplier profiles and capabilities for possible inclusion in RFI/RFPs
• Provide recommendation to procurement for consideration, and manage supplier diversity
reporting
• Support suppliers based on feedback and performance
• Assure diverse supplier utilization in every RFP, and coach suppliers accordingly
• RFx tracking and governance
• Collect spend
data
• Recommend
alternative
specs &
opportunities
for
simplification
• Assess supply
base
• Recommend
sourcing
strategy/action
plan
• Work with LOB
to design
demand mgmt.
strategies/polici
es
• Develop & drive
RFP process
• Analyze
response & rate
suppliers
• Negotiate &
finalize
contracts
• Manage
contract details
& supplier
information
• Facilitate &
follow up on
supplier
initiatives
• Manage
customer/suppli
er compliance
tracking tools
• Manage & issue
metrics &
reports
Cross Function Engagement Model
Planning Execute
Supplier /
Contract
Management
76. © SourceOne Innovations, Inc. All Rights Reserved.
How Will YOU Do This??
Executive
Support
Thoughtful
Communi-
cation
Pristine
Spend
Data
Proficient
Resources
Strategic
Outreach
Champion
Building
Recognition
77. © SourceOne Innovations, Inc. All Rights Reserved.
Supplier Diversity Check List
•$ spent last year
•$ spend/dept.
•% of total spend
Total
Dollars
• CEO?
• Executive Diversity
Council?
• Board of directors?
Executive
Support
• Provide the staff
leadership
• Provide the
structural support
Structure
and
Staffing
• Publish the goals and results
• Use internal and external
publications
• Highlight suppliers
Communicate
the Goals and
Results
• Measure results
• Award performance
• Penalize deficiencies
• Link to performance evaluations
• Provide periodic reports
Ensure
accountability
• Matchmaking
• Vendor fairs
• Mentoring
Encourage
special
outreach
programs
78. SD Program Best Practices
© SourceOne Innovations, Inc. All Rights Reserved.
1. A policy supported by a supplier diversity business case based on value to Company.
2. Employee reviews are tied to performance in developing supplier diversity cross-
functionally.
3. Company has an effective, active cross-functional supplier diversity steering
committee.
4. The Company supplier diversity program promotes the inclusion of all diverse
suppliers in all aspects of corporate procurement.
5. The Company corporate plan is reviewed and endorsed by senior leadership.
6. Program controls, processes, personnel and resources identified and/or acquired.
79. Supplier Diversity Metrics
Number of sourcing events launched
Number of diverse suppliers invited
Number of diverse supplier participating
Number of diverse business awards
Reasons for RFP no business award
Spend by diverse category
Tier I compliance/Tier II
External awards/recognition