Presbyterian Church (U.S.A.)Climate for Change Task Force

Establishing a Supplier Diversity Program

By

William H. Drewes

Attorney – Supplier Diversity Counsel

September 8-10, 2010

Philadelphia, PA

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Roots of Supplier Diversity

President Roosevelt M. Nixon established the U.S. Office of Minority Business Enterprise (OMBE) on March 5, 1969 with Executive Order 11458

Agency renamed in 1979 as the Minority Business Development Agency (MBDA) in the U.S. Department of Commerce

Technical assistance, federal government procurement opportunities for minority-owned businesses not women-owned businesses

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Who are Diverse Suppliers?

Small businesses which are majority owned by women, minorities, veterans, disabled or socially or economically disadvantaged individuals

Small businesses which are located in distressed areas designated as HUB Zones (Historically Underutilized Business Zones)

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Certifiable Minority Groups

All must be U.S. Citizens African-American/Black Hispanic/Latino Native American (American Indian,

Eskimo, Native Hawaiian) Asian Pacific Asian Indian Women

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Criteria for Minority- or Women-Owned Business Enterprise (M/WBE) Certification

A for-profit enterprise (no non-profit organizations)

At least 51% ownership by minority or women individuals

Active operational management of the company by the minorities or women

Control of the business by the minorities or women

The minorities or women are U.S. citizens The company is U.S. incorporated and

based in the U.S.

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Certifying Agencies

U.S. Small Business Administration (SBA)

www.sba.gov

National Minority Supplier Development Council (NMSDC) or its regional affiliates

www.nmsdc.org

Women’s Business Enterprise National Council (WBENC) or its regional affiliates

www.wbenc.org

State and local government agencies

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Regional DiverseSupplier Development Councils

The Tri-State Minority Supplier Development Council

614 West Main Street, Suite 5500

Louisville, KY 40202

(502) 625-0159

www.tsmsdc.com

Ohio River Valley Women’s Business Council

3458 Reading Road

Cincinnati, OH 45229

(513) 487-6515

www.orvwbc.org

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It’s a Process!

It’s Business – It’s Legal Identify Qualify Negotiate Contract Evaluate

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Establishing aSupplier Diversity Program

Have a written plan Buy-in from top leadership

A vision Mission statement Message from top leadership

Establish supplier diversity procurement policy and standards Appoint someone to implement the plan Use available resources (Don’t re-invent the wheel!) Analyze current spend, establish goals Do outreach: vendor open house, RFPs, RFIs

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Establishing a Supplier Diversity Procurement Standard

A Business Case – First!

1) Is the product or service the kind and quality you want to purchase?

2) Is the asking price within your parameters, negotiable?

3) Does the vendor have an IT/EDI system compatible with your supply chain system?

4) Is the vendor financially strong and stable to service your account?

Then, a socio/economic bonus to your organization if that vendor is also a certified diverse supplier

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Diversity Supplier Registration Form

Note: No guarantee that they will get business BUT they must register

Basic information required:

Legal name of business Contact information

Product/Services provided Product/Services Codes

DUNS number Tax ID number

Date business started Sales information (last 3 years)

Certification References

Signed by principal of the company

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The Codes

SIC – Standard Industrial Classification NAICS – North American Industrial

Classification System UNSPSC – United Nations Standard

Products and Services Code

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Technical Assistance for M/WBEs

Don’t try to do it yourself unless you are in the business education business yourself.

Refer them to their nearest office of: Service Corps of Retired Executives (SCORE)

390 chapter offices, (800) 634-0245

www.score.org

Small Business Development Centers (SBDC)

800 centers, (703) 271-8700

www.sba.gov

Minority Business Development Agency (MBDA)

(202) 482-4547

www.doc.gov

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Second TierSupplier Diversity Programs

“Encourage” prime contractors to establish “goals” to include M/WBEs in the their procurement contract with your organization

Report and track subcontract spend

An Emerging Business Modelfor Diversity in the Private Sector

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Supplier DiversitySupplier Diversity

WorkforceDiversity & Inclusion

WorkforceDiversity & Inclusion

Green Initiative &Sustainability

Green Initiative &Sustainability

Corporate Philanthropy

Corporate Philanthropy

Corporate Social

Responsibility(CSR)

Corporate Social

Responsibility(CSR)