This document outlines a supplier diversity initiative for an organization's office of diversity and inclusion. It discusses leveraging diverse suppliers to increase value in healthcare supply chains. The presentation covers trends in healthcare supply chain management, defines supplier diversity, outlines the business case for strong diverse suppliers, presents goals and recommendations to increase spending with minority and women-owned businesses. The goals are to join an organization recognizing $1 billion in diverse supplier spending and increase tier 1 and 2 diverse supplier spending across hospital sites. Recommendations include updating purchasing policies and utilizing supplier advocate councils.

1. Office for Diversity
and Inclusion
Supplier Diversity Initiative:
Leveraging Diverse Suppliers
For Increased Value
Hubert Kwame Anane-Sarfo
December 5, 2016

2. Agenda
1. Supply Chain Value in Healthcare
2. Supplier Diversity Defined
3. Strong Diverse Supplier
4. Business Case
5. Program Elements: Mission, Current State, Goals
6. Recommendations
7. Website

3. Supply Chain Value Trends in Healthcare
▶ Reduction of Total Vendor Base/Consolidation of vendors (one
organization approach or via a consortium of organizations approach)
▶ Offer larger contracts to remaining vendors in exchange for improved
pricing levels and quality/service levels
3

4. Supplier Diversity…
▶ Is a business strategy that ensures a diverse supplier base in the
procurement of goods and services for a business or organization.
▶ Diverse suppliers are Minority and Women Owned Enterprise
(MWBE), LGBT, HUBZone
– 51% owned, managed and operated
▶ Statistics show that companies who embrace diversity are more
profitable than companies who do not mainly because:
– Increases competition
– Drives innovation
4

5. Strong Diverse Suppliers
▶ Leading supplier diversity efforts have tapped into strong diverse
suppliers, who effectively participate and offer value to the supply
chain efforts
▶ Strong Diverse Supplier:
– 7-8 figures in Revenues/Organizational Sales
– Strong past performance
– Competitive, superior quality service and pricing
– Offer unique innovation in products and services
5

6. Business Case for Supplier Diversity
▶ Improving Health & Building Wealth
▶ We as a superior health system have a chance to tackle social
determinants occurring in our communities
– Two main socioeconomic issues within communities are: income and
health
– Supplier Diversity is one significant tool in facing these issues
• Buying from small businesses helps them create more profit
• Helps businesses grow, increase wages and hire more people
• Strengthens relationship among health system, suppliers, and external
stakeholders
6

7. Biz Case for Supplier Diversity cont’d
7
MS
procurement
dollars spent
with Diverse
suppliers
Diverse
suppliers
ramp up to
meet
demand by
hiring and
increasing
inventory
Increase in
jobs to meet
demand,
increase
spending by
businesses
This
stimulus
contributes
to
community
development
and
improved
family living
A reduction
in negative
social
determinants
and
improvement
in health
outcomes
Sinai builds new
outpatient unit
contracting MWBE
Business has
more income
for
sustainability
MWBE hires
more workers
to ensure
deadline
More jobs created, wages
paid and families have
disposable income

8. Mission Statement
▶ Mount Sinai Health System supplier diversity program is committed
to maintaining a competitive, diverse supplier base reflective of the
communities we serve. We facilitate this by supporting the utilization
of qualified diverse businesses (women, minority, LGBT, disabled,
veterans, HUB Zone, etc.)
▶ Objectives:
– In support of our mission, we will use a comprehensive approach to
supplier diversity to create community wealth and generate work
opportunities.
– We also will partner with diversity advocate organizations to provide
support services to diverse vendors on: becoming certified, the
procurement process, educational seminars, and networking events.
8

9. Current State
Percentage of Diversity Spend 2014 2015
2.85% 2.97%
9
Diversity Spend (Certified) 2014 2015
$19 million $45.5 million

10. 10
Goals
10
Billion Dollar Roundtable
• Organization created to recognize & celebrate
corporations that achieved spend of at least $1 billion
dollars with MWBE’s
How can we join?
• Increase diversity spend across 7 hospital sites
• Set spend goals for hospitals & affiliates
FAST FACTS:
20 members
12,586
suppliers
8 industry
sectors
$75 billion
in diverse
spend

11. 11
Goals cont’d
11
Increase Tier 1& 2 spend
- “Companies under $1 million in annual revenue tend to hire
people that look like them, have between 5-10 employees and
are from the same physical community. Increasing their
business… not only result in job creation, but further promotes
goodwill among their employees.”
- Introduce more strong diverse suppliers into procurement
process
- Increase small business engagement
- Source: http://jobenomicsblog.com/minority-owned-businesses/#sthash.pg9sNmnA.dpuf

12. Recommendations
▶ Update Mount Sinai Health System Purchasing Policy
– Include a small section about Supplier Diversity in the Objectives and
standards section (page3)
• To support a competitive bidding process, we include minority and diverse
suppliers within our purchasing process
– Under Competitive Selection Process (page7) alter current statement.
• Include at least one diverse supplier in purchases between $15,000-$25,000
and above $25,000
▶ Utilize minority supplier advocate councils
– Provide a copy of all proposals to diversity councils for distribution to
MBEs which would be good matches
12

13. Recommendations cont’d
13
We actively engage diverse suppliers
into our purchasing process to continue
to ensure competitiveness.

14. Recommendations cont’d
Include at least one
diverse supplier in
purchases

15. Website: http://www.i-m.mx/23hasolv/MtSinai/

16. Questions/Comments

17. 17
References
17
Jamahal C. Boyd, Sr
Director Diversity, Inclusion and Language Services
Tri- Health
Beverly Norman-Cooper
Executive Director, National Supplier Diversity
Kaiser Permanente
Joseph B. Hill
Senior Vice President & Chief Diversity Officer
Thomas Jefferson University and Jefferson Health
Mark Mills
Executive Director, Purchasing Services
University of Pennsylvania
http://jobenomicsblog.com/minority-owned-businesses/#sthash.pg9sNmnA.dpuf