Supplier Diversity @ BCBSLA Anselmo R Rodriguez, MBA, CPSM July 26th 2016

Supplier Diversity @ BCBSLA ISM- Baton Rouge Supplier Diversity @ BCBSLA   Definitions Evolution Supplier diversity at BCBSLA Metrics Certification Resources

ISM- Baton Rouge - DEFINITIONS

ISM- Baton Rouge - DEFINITIONS Supplier Diversity is a proactive business program which encourages the use of minority-owned, women owned, veteran owned, LGBT-owned, service disabled veteran owned, historically underutilized business, and SBA-defined small business vendors as suppliers. WikiLeaks Supplier Diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. Supplier Diversity emphasizes the creation of a diverse supply chain that ensures the inclusion of diverse groups in the procurement plans for government, not-for-profits, and private industry. CVM Solutions Supplier Diversity - Encouraging contracting opportunities for qualified, responsive and responsible vendors that reflect our market and customer base. BCBSLA

ISM- Baton Rouge - DEFINITIONS MBE: A business concern that is at least 51% owned and controlled/managed by a minority individual or minority group. This includes but is not limited to the following minority groups: African Americans, Hispanic Americans, Native Americans, Asian Americans WBE: A business concern that is at least 51% owned and controlled/managed by a woman or women. VOB: At least 51 percent owned, managed and controlled by one or more veterans. SDV: At least 51 percent owned, managed and controlled by one or more individuals with a service-connected disability. Small Business Enterprise: Independently owned and operated and not dominant in its field of operation. The size will vary from industry to industry and is defined by the Small Business Administration. Size Standards: www.sba.gov/tools/size-standards-tool Physically Challenge: At least 51 percent owned, managed and controlled by one or more individuals with a physical disability as defined by the ADA LGBT: At least 51 percent owned, managed and controlled by one or more individuals that belongs to the Lesbian, Gay, Bisexual and Transgender community

ISM- Baton Rouge - DEFINITIONS 8(a): Small disadvantaged businesses that are certified as 8(a) by the Small Business Administration HUBZone Business: Small business operating in a historically underutilized business zone owned and controlled by one or more U.S. Citizens, where at least 35 percent of its employees reside in a HUBZone. HUBZone businesses must be certified by the Small Business Administration. Tier-1 Diversity Spend: represents the direct relationship between a company and its diverse supplier. Tier-2 Diversity Spend: counts for when the company’s direct supplier contracts with other diverse suppliers and reports that spend back to the company. Certified: supplier accredited by an independent organization of its diverse status. Classified: self certification by a supplier regarding its diversity status.

ISM- Baton Rouge - EVOLUTION Mandated – quotas, set asides, government certification, track diverse spend. Social Responsibility – socially correctness, independent certification, corporate goals, contributions, board participation, track cost savings and spend, annual performance as percentage of business. Business Development - Marketing to non-traditional markets, increase competition to affect cost, supplier development, economic impact (jobs, taxes, local economy, state).

ISM- Baton Rouge – SD @ BCBSLA BCBSLA’s commitment: Ensure access to contracting opportunities for qualified, responsive and responsible vendors that reflect our market and customer base. Who is responsible: all employees. SCM is responsible for facilitating location of suppliers, supplier development, corporate reporting and overseeing compliance of our Purchasing Policy. SCM is responsible for keeping an accurate vendor master at all times, including diversity information. We ALL must strive for fair participation of capable and responsible diverse vendors in all procurement opportunities in the company. Our program concentrates on MBE, WBE, VET, DV, Hudson and LA Vet.

ISM- Baton Rouge - METRICS Federal Government SF 294 & SF 295 – filed every six months on March and October of every year. SADBUS Plan – filed once a year in July for the following year. Multiple diversity classifications spend count on its own merit (multiplier effect). Diversity Officer & CFO Annual corporate and divisional goals – January. Monthly Supplier Diversity Report – Corporate & Divisional. Spend reporting hierarchy MBE-WBE-VET (no multiplier effect). BOD & CFO Year end supplier diversity performance report. Annual report in January during CEO review. Diversity & Inclusion Annual divisional performance for MLK Award.

ISM- Baton Rouge - CERTIFICATION What: Becoming a Certified Professional in Supplier Diversity™ (CPSD™) allows you to create high-impact supplier diversity outcomes. Designed for professionals tasked with creating diverse supplier initiatives as well as strategic diversity initiatives, CPSD™ certification gives you exemplary skills and recognition as an expert in the diversity sourcing field. Why: Demand: Supplier diversity expertise is in high demand, at a time when stable, long-lasting relationships are essential to meeting corporate business and inclusion goals. Exclusivity: CPSD™ certification is one of very few programs geared toward effective development and maintenance of a diverse supplier base. Revenue: Salary data shows that supply management employees with certification on average earn higher salaries than those with no certification.

ISM- Baton Rouge - RESOURCES http://www.la-ptac.org http://wbecsouth.org http://www.srmsdc.org Introductions 1:00 – 1:10 Our Understanding 1:10 – 1:30 Points of View 1:30 – 2:15 Blueprinting Approach and Timeline 2:15 – 2:45 Process Workshop Demonstration 2:45 – 3:00 Project Organization and Staffing 3:00 – 3:15 Why Deloitte 3:15 – 3:30 Summary/Question and Answer 3:30 – 4:30 Professional Fees 4:30 – 5:00 https://smallbiz.louisianaeconomicdevelopment.com/certifiedbusiness/ Chambers of Commerce in Louisiana PeopleSoft Vendor Master Internet - google