Deana Vitale, President Diversity Gateway, LLC Supplier Diversity Deana Vitale, President Diversity Gateway, LLC

What is a Supplier Diversity Program? Commitment to utilize: ◦ Minority-owned ◦ Women-owned ◦ Small ~ Disadvantaged businesses in a company’s procurement activities. Procurement goals are set. Progress is tracked and reported.

What is Minority Ownership? At least 51% minority owned and controlled ◦ African American ◦ Asian American ◦ Hispanic American ◦ Native American Must be U.S. citizens Certified by a State council of the National Minority Supplier Development Council

Who Qualifies as Small Business? Standards vary by industry < 500 employees (manufacturing) < $7 million (non-manufacturing) Independently owned 51% owned and controlled by:  Socially or economically disadvantaged  Woman or women  Veteran  Service disabled veteran  HUB zone (Historically Underutilized Business Zone)  Certified by SBA  Women’s certification WBENC (Women’s Business Enterprise National Council)

Why Diversity Procurement? Multi-cultural economy Customer based reflection (especially marketing) Customer based innovations Access to government contracts Increased business! Corporate goals Government goals Access to corporate diversity contacts Business networking Mentoring Training Corporation Supplier

Multi-Cultural Buying Power In 2008 corporate purchasing with minority businesses exceeded $100 billion Minority buying power will more than triple from 1990 through Most dramatic will be the rise in Hispanic buying power at 356% during this period. From 2000 – 2003 Hispanic buying power increased nearly 30% - more than any other U.S. group. Blacks and Hispanics are four times likelier than others to start a new business. People of color accounted for nearly 40% of the growth in homeownership from 1994 to 1999, and will represent 30% of households by Source: Selig Center for Economic Growth at the University of Georgia

Diversity Program Success Mission is established by top leadership (CEO) Entire purchasing organization is engaged ◦ Buyers are given personal metrics There is a Supplier Diversity staff ◦ Participates on diverse organizational boards ◦ Attends networking and outreach events ◦ Ensures suppliers are introduced to pertinent buyers ◦ Keeps organization informed of progress Financial reporting is capable Tier 2 requirements

Best of the Best Diversity Council ◦ Rotating Supplier Owners and Purchasing Executives Mentoring Program ◦ Access to purchasing teams ◦ Supplier to supplier assignments ◦ Focus groups – similar industries / bubble up issues to council ◦ Entrance and exit criteria – graduation! Specialized Training ◦ Navigating the purchasing process ◦ Business schools ~ financial management Company Events ◦ Buyer days ◦ Product or service demonstrations

Diverse Relationship Contributions Supplier Diversity Supplier Diversity Employee Diversity Diverse Market Customers Company Product Input Increased Market Share Product Improvement / Relevance Product Purchase