Post on 11-Apr-2018
Supplier Diversity Update 2012 Supplier Conference
Joan Kerr
Director, Supplier Diversity and Sustainability
October 24, 2012
PG&E Supplier Diversity: 5-Year Performance Trend
$268.4M
54.4%
*Not Adjusted
$599M
$755M
$928M
$1.1B
$1.6B
21.7%
23.9%
25.6%
32.7%
36.6%
15%
20%
25%
30%
35%
40%
$250
$450
$650
$850
$1,050
$1,250
$1,450
$1,650
$1,850
2007 2008 2009 2010 2011
(M$)
In 2011, PG&E spent over $1.6B will CPUC-certified diverse suppliers.
In Perspective: PG&E Prime Supplier Program (PSP)
Prime Suppliers = key to PG&E’s supplier diversity goal achievement and to expanding opportunities for DBEs
Prime Suppliers = 46.2% of SD Results via subcontracting and business solution alliances
46.2% was accomplished through
our prime suppliers
$744.6M $1.65B
2011 PG&E Supplier Diversity Spend
The World of Supplier Diversity…
• Chris Johns spoke at CPUC Supplier Diversity En Banc 10-year anniversary
• Celebrating $32 billion DBE spend
• CPUC asked CA Utilities to help expand supplier diversity leadership across other industries
…is expanding • AB-53 requires insurance firms to
report SD results to the CA Insurance Commission
• Illinois requires energy utilities to report supplier diversity performance
• NMSDC Utility Industry Group
• EEI Supplier Diversity Group
Increasing Focus on PSP Performance
• Are you building aggressive Supplier Diversity goals into your contracts?
• Have you submitted a robust Supplier Diversity plan?
• Are you reporting your Tier 2 Supplier Diversity performance?
• Are you meeting your Supplier Diversity goal?
• What is your forecasted year-end performance?
Contract Goal
Setting & Tracking
Engage All Primes
Diversity Inclusion
Plans
>$500K Primes
required to report
1-2-3 Tier
PSP
Dashboard Reporting &
Metrics
Prime Supplier Program :: Goals
Goal: Prime Supplier development and utilization of DBEs throughout entire value chain with PG&E
Sub-contracting goal management
• >$500k goal validation
• Monthly 2&3 Tier reporting
• Annual audit
VAR and Business Solution Partnership Development
The Value of Diverse Supplier Development
Innovation & Leadership
Economic Development
& Job Creation
Supply Chain Optimization
Customer Satisfaction
Sales & Brand Enhancement
How do you achieve your Supplier Diversity goals?
Investing Resources
Collaboration
&
Engagement
Supplier Development
&
Mentorship
Supplier Development Program
• Executive Mentorship
• Cross-Functional Team support from Sourcing, Supplier Diversity and Line of Business
• Value Chain and Business SWOT Analysis
• Customized Business Development Plan
OEM Hardware &
Software
IBM
Dell
HP
Microsoft
SAP
ZONES
-----
Value Added Reseller
-----
Takes Title of Hardware &
Software
PG&EProvide HW & SW Product
Provides HW &
SW Product
$20M
Contract
Contracts
Negotiated OEM Contracts for innovation, pricing, warranty, service, maintenance, etc.
Supplier Review:
· Value-Added/Authorized Reseller model in this space has been an industry
standard for many years
· Zones negotiates volume pricing levels with HW/SW OEMs
· Zones purchase products and takes title of HW/SW and sells to PG&E
· Single point of contact addressed business problems
· Source and warehouse products as appropriate
· Configure HW per customer requirement
· Manages/coordinate PG&E’s asset coordination (i.e., directs
employees to internal surplus products instead of placing order for
new HW/SW.)
· Cost management ( e.g., electronic SW, instead of physical SW delivery, to
provide tax break for PG&E)
Value-Added/Authorized Reseller Model
Objective: One Stop Provider of Computer
Hardware and Software
Problem: Multiple OEMs for IT Hardware &
Software product
Solution:
· Centralize the ordering of
computer HW and SW
products
· Address various business
service requirement/
challenges
Technical Assistance Program
• DBE Trade Missions to Industry Tradeshows
• UC Advanced Technology Management Institute - Engaging DBEs in the Smart Grid future
• PG&E Signature Initiatives - Diverse Suppliers Go Green
- Diverse Suppliers Go Global
- Diverse Suppliers Are Safe
• External Community Partnerships - UCLA Management Development Program
- Inner City Advisors 10-Week Business Development Program
- Small Business Administration
Join us in Supplier Development
SEVEN Areas to Increase Your Participation:
1. Set supplier diversity goals of at least 37.3% and report subcontracting results monthly
2. Mentor DBEs by sharing operational experience and technology transfer
3. Support development and execution of opportunity gap-closing strategic initiatives to build DBE capacity
4. Financial sponsorship of DBEs for technical assistance training programs and attendance at trade show missions
5. Assist in finding diverse business partners and business solutions to fill a gap or add value to the supply chain
6. Engage with DBEs by participating in diversity trade shows (matchmaking, booth, table sponsorship, etc.)
7. Become corporate members in supplier diversity organizations like SDVOB Elite, NMSDC, WBENC, WE Connect International, etc.