1. ISM-Carolinas/Virginia Triad Chapter
Kernersville, NC September 20, 2011
Presented by:
Jackie LaJoie, Vice President
Carolinas Minority Supplier Development Council

2. Today We Will Talk About …
Carolinas Minority Supplier Development Council – who we are
The business case for Supplier Diversity
5 levels of Supplier Diversity programs
Best practices for a World Class program
The life of a Procurement professional
Procurement approaches for inclusion
Fun time – True or False?

3. About CMSDC
CMSDC promotes and facilitates business relationships between the public/private sector and certified minority-owned businesses.
Asian Indian American
Asian-Pacific American
Black American or African-American
Hispanic American
American Indian
170 Corporate Members Local
3,600 Corporate Members Nationally
450 Minority Businesses Local
15,000 Certified Minority Businesses Nationally
NMSDC Started 30 plus years ago as a Corporate response to a social issue
37 affiliates - part of a National organization
Represent NORTH and SOUTH CAROLINA
The U.S. Census Bureau estimates that minorities, both arriving from abroad and born here in the United States, will account for nearly 90 percent of the total growth in the U.S. population from 1995 to 2050.
Asian Indian American
Asian-Pacific American
Black American or African-American
Hispanic American
American Indian
The U.S. Census Bureau estimates that minorities, both arriving from abroad and born here in the US, will account for nearly 90 percent of the total growth in the U.S. population from 1995 to 2050.
The ethnic-owned business growth rate is over 30% where as all others are 7%.
Minorities represent 28% of US population
15% of the total businesses
3% of gross receipts
4% of total corporate purchase spend
11/21/2018

4. Our Focus
Drive sustainable value for corporate/public sector members through an integrated and innovated delivery approach, centered on…
Certifying qualified and capable MBE suppliers
Building / strengthening supplier capacity
Building / strengthening supplier diversity programs
Increasing the supplier diversity business case discussion and value proposition within the community

5. Frame Your Business Case
Support Government contracts - $XB
Support Commercial contracts - $XB
Build brand loyalty & brand visibility
Reduce costs / Increase revenue / leverage innovation
Demographic shift – 107+ million minorities in U.S. today
Support wealth creation in the communities in which we do business

6. Internal Quick Review Example
Business Case
Build brand loyalty & brand visibility
Reduce costs / Increase revenue / leverage innovation
Demographic shift – 107+ million minorities in U.S. today
Support wealth creation in the communities in which we do business
Support Commercial contracts - ~$XB
Support Government contracts - ~$XB combined companies
Use to notate good/bad, etc.
2010 Program Focus
Stakeholder Support
Increase Diversity % / $
Increase 2nd Tier Results
Increase Internal Awareness & Support
Mentor Program w/ Division Support
Government Requirements – Small Business Categories
External Outreach
Globalization of Program
Active sponsorship of Program
Drive ownership and accountability throughout enterprise
Create inclusive sourcing strategies that result in diverse business growth and support government requirements with small businesses

7. Where Are You? Ralph G. Moore & Assoc. Scale 5 Levels to World Class 7
Beginning Program
Level 2
Basic Program
Level 3
Traditional Program
Level 4
Advanced Process
Level 5
Best in Class Process
A “contact person” to answer phone calls
No Tracking System
No Materials
No Trade Fairs
No Budget
No Outreach
Part-time diversity business coordinator
Program Brochure
Subcontracting Plans
Limited Trade Fair Participation
Compliance Driven
No Ownership
Visible Program Manager
Some Program Collateral Materials
Limited Program Tracking
Local/National Diversity Business Organization Memberships
Little Senior Management Involvement
Outside Core Strategy
Program Director
Internal and External Identity Packages
Measurement by business unit
Diverse Vendors company-wide
Involved Senior Management
Tied to Procurement Objectives
Program Director
Communications Plan
Measurement of revenue contribution
Mission critical joint ventures and strategic alliances
Senior Management Leadership
Tied to performance Objectives company-wide
Where Are You? 7 7

8. NMSDC Best Practices
Establish Corporate Policy and top corporate management support.
2. Develop a corporate minority supplier development plan
3. Establish comprehensive internal and external communications
4. Identify opportunities for MBEs in strategic sourcing and supply chain management
5. Establish comprehensive minority supplier development process
6. Establish tracking, reporting and goal-setting mechanisms
7. Establish a continuous improvement plan
8. Establish a second tier program

9. A Procurement Professional’s Life
Heavy workload – often 20 or more projects at the same time
Fast paced environment – your customer wants it NOW!
Process / policy driven
Often your time is eaten up by fixing what someone else broke
Task forces, committees, teams, meetings, etc. compete for your time
How can you possibly take on Supplier Diversity with all that on your plate?

10. Let’s Consider… Do opportunities exist in these areas of
Professional Services
Facilities Management
Direct Materials
Research
Marketing
Printing
Construction
Do opportunities exist
in these areas of
Procurement???

11. Fact or Fiction
Minority suppliers always cost more? (Fiction – MBEs can be as competitive and responsive as a large supplier and a small business has lower overhead which means savings passed on to the customer.)
I don’t have time to hunt a minority owned business to include in my RFPs. (Maybe but CMSDC can help)
I buy proprietary professional services and there are no MBEs who can compete. (Perhaps but you can design MBEs into the workflow. Think about carve-outs by geographic area, or product/service area.)
During negotiations, my prime supplier responded “N/A” in the Supplier Diversity requirements section. There’s nothing I can do. (Fiction – first weight this requirement in the RFP, make it clear that this is a requirement just like service, quality, etc. Push back!!)