1 NAPM – Dallas Making Minority Suppliers Part of Your Supply Management Strategy Thursday February 8, 2007 Dinner Presentation

2 Marilyn Gettinger, C.P.M. President New Directions Consulting Group

3 Definitions  Small and historically underutilized businesses (HUB)  Minority Supplier Hispanic, Asian-Pacific, Asian–Indian, Native American, Black American  Woman-Business Enterprise – 51% woman- owned  Disadvantaged  Small minority suppliers – less than $10 million in revenue  Large minority suppliers – more than $10,000,000 yearly revenue  Federal small business – 500 or fewer employees  State – 150 employees or less

4 Definitions   Title 13 of the Code of Federal Regulations (CFR), Part 121

5 Texas Building and Procurement  Texas Government Code, Chapter 2161 Markets the HUB program Certifies minority and women- business enterprises as HUBS HUB – 51% ownership Asian Pacific, Native American, Black American, Hispanic American, American Woman

6 Why a Minority/WBE/SBE Programs  Micro view Government legislation Social responsibility Increased sales ISM Ethics Principles Alternative sources of supply Public relations Community relations  Macro view Builds the economy Generates jobs  97% of new positions Increases the tax base Generates more spending power Expands Gross Domestic Revenue

7 Evolution  The U.S. Office of Minority Business Enterprise – U.S. Dept of Commerce 1969  Public Law Federal contracts Over $500,000 for goods and services and $1,000,000 construction

8 Statistics  Over 3.2 million minority businesses  Over 9.1 million women-owned businesses

9 Texas Statistics  $1.81 trillion in 2002 up from $1.41 trillion in 1997  1,734,648 firms an increase of 200,000  8,059,889 employees

10 Texas Statistics Hispanic 2002 Black-Owned 2002 Women-Owned ,339 firms 33% increase from 240,396 in 1997 $42.19 billion 1in 5 located in Texas 2 nd nationally Number, sales and receipts Dallas-Fort Worth 5th in state 88,769 firms 47% increase From 60,427 in 1997 $6.69 billion 5 th in the nation for number 3 rd for sales and receipts 469,049 firms 23% increase from 381,453 in 1997 $66.7 billion 3 rd in the nation for number, receipts and sales

11 Texas Statistics Asian-Owned 2002 Native-American Owned ,018 firms 32% increase from 59, 318 in 1997 $22.62 billion 3 rd in the nation for number and 3 rd for sales and receipts 16,863 firms 8% increase from 15,668 in 1997 $3.32 billion 3 rd in the nation for number 2 nd in the nation for sales and receipts

12 Texas Statistics  Pacific Islander-Owned in ,543 firms 70% increase from 908 in 1997 $277 million 5 th nationally for number 3 rd nationally for sales and receipts

13 Supplier Challenges  Communication  RFP’s/RFQ’s  Funding  Many hats  Difficulty of getting into corporations  Navigating the organization  Payment  Delegation and micro-managing  Growth spurt  Quality employees  Work management  Training and development  Management style

14 Supply’s Challenges  Qualified MBE’s,WBE’s, SBE’s, DBE’s  Time commitment  Mentoring and coaching  Capacity  Contingency planning

15 Sources of Information   Pro-Net – Internet-based database containing information on more than 195,000 small, disadvantaged, HubZone, and women-owed businesses  Free to government agencies seeking MBE/WBE/SBE/DAB  Open to contractors seeking sub- contractors

16 Certification Preparation  Private companies  Small Business Development Centers

17 Certified MBE/WBE  State government  National Minorities Suppliers Development Council (NMSDC)  Port Authorities  Women Business Enterprise National Council (WBENC)  Other agencies – South Central Texas Regional Certification Agency (SCTRCA)

18 Certification?  The contractor/supplier completes documents and pays a fee Principals of business Expenses in setting up business Classification of business Address, , phone, and fax Years in business Tax returns from the prior three years Sole proprietor, partnership, corporation, S-corp, LLC Notarized

19 Information Resources  Chambers of Commerce  Trade shows  National Minority Business Council  Small Business Development Center  Dun & Bradstreet  National Association of Women Business Owners

20 Information in Texas  TEXAS Central & South Texas Minority Business Council Austin: (512) Dallas/Fort Worth Minority Business Council Dallas:(214) Central & South Texas Minority Business Council Dallas/Fort Worth Minority Business Council  Houston Minority Business Council Houston:(713) Houston Minority Business Council

21 Information Resources  Central Texas Minority Business Directory  Central-Texas.Minority- Business-Directory Central-Texas.Minority- Business-Directory  2007 DIR National Minority and Women-Owned Business Directory – 38 th edition $129 s.shtm s.shtm

22 Information Resources  Diversity Information Resources  Women’s Directory of Women- Owned Business Organizations  National Director of Minority- Owned Business Organizations Business Research Services, Inc.

23 National Minority Supplier Development Council, Inc.  39 minority Purchasing Councils   30% ownership  Referral of corporate purchasers to minority supplies  Education

24 Chambers of Commerce  Local minority chambers of commerce  Encyclopedia of Associations - Gale

25 Support Systems for MBE/WBE/SBE  Small Business Authority (SBA)  Small Business Development Centers (SBDC) 200 or more located all over the United States  SCORE – Service Corps of Retired Executives  National Minority  State incubators  Liaison Agencies Airports    Bizmove.com  e.sba.gov e.sba.gov Marketing Business Plan Selling

26 Program  Purpose of the program  Definition of small business/small disadvantaged business/minority program  Scope  Objectives and benefits  Responsibility  Execution strategies and tracking process  Reporting  Coordinator

27 Building Successful MBE Relationships  Corporate infrastructure  Supplier diversity goals  Champion  Goals rolled into sourcing program  Relationship building as a core strategy  Commitment from senior management

28 Building Successful MBE Relationships  Purchasing done by purchasing  Training  Diversity awareness throughout the organization  Contact person focused on the program

29 Solutions  Divide large contracts  Set aside sections of a contract  Bid system that factors in the impact on the community  Suppliers to use minorities  In-house training  Mentoring  Capital

30 Supplier Diversity Operating Plan  Vision and Goals Diversity vision Corporate objectives Spending goals  Background Diversity history Strategic advantage Demographics Industry benchmarks World-class program Definitions

31 Supplier Diversity Operating Plan  Corporate Strategies Target areas Pre-sourcing Advisory committee Outreach program Measurement and reporting system  Implementation Baseline Sourcing strategy Tracking methods Scorecards Second tier program Communications plan Quarterly and annual assessments

32 Thank You for Joining Us  NAPM – Dallas  Marilyn Gettinger, C.P.M.  New Directions Consulting Group  