To Compete during Economic Uncertainty, Minority Suppliers Must Network, Form Alliances and Conquer the Internet
Klimley, April W., Black Enterprise
Let's face it. An economic downturn is hard on everyone, large and small businesses alike. But there may be a silver lining to this cloud for Minority Business Enterprises (MBEs).
"This downturn has already created tremendous cracks in the `old boys' network," explains Ralph Moore, a Chicago-based minority purchasing expert, who has advised many Fortune 500 corporations on their MBE programs. "In fact, the downturn, coupled with the technical revolution, is creating unique opportunities to reshuffle the deck," he says.
Alliances Are One Key to Success
As evidence of these opportunities, Moore points toward innovative ways certain larger MBEs have responded to the most potent trend in purchasing: corporate America's move toward "strategic sourcing," that is, reducing the number of suppliers, and frequently moving from local to national or even international purchasing contracts to lower costs and streamline operations.
A growing number of MBE's are forming alliances with other MBEs or majority companies to compete in this environment and move to the next level. Integrated Packaging Company (IPC) of New Brunswick, New Jersey, for instance, has been able to reinvent itself and expand its reach. Initially, a broker for corrugated boxes, IPC signed a contract to purchase a New Jersey manufacturing facility for corrugated boxes from Jefferson Smurfit, a majority company, in 1995. What made it possible for IPC to get the financing for the purchase was the five-year contract that one of its largest clients, Pepsicola, was willing to sign; as well as Jefferson Smurfit's willingness to supply the raw materials. The three-way deal catapulted IPC into a position as a national supplier and owner of its own manufacturing facility.
This type of cooperative arrangement reflects a new strength and depth among minority businesses. Forty years ago, many MBEs served primarily minority customers. Today a significant number of MBEs have the experience, management heft, size and balance sheet to handle national and even international contracts.
MBE's Have Boomed in the 1990s
At the same time, a number of minority-owned businesses boomed during the 1990s. From 1987 to 1992, the number of African American-owned businesses grew by 42 percent, from 424,165 to 620,912, significantly greater than the 26 percent average growth rate for all businesses. The number of women-owned African American firms jumped 75 percent.
Corporate America is responding to this growth. Despite a wobbly economy, major corporations continue to support active minority purchasing programs. A certain percentage of these Fortune 500 companies have incorporated minority purchasing into their strategic business objectives, according to consultant Moore. And minority businesses continue to receive contracts through the Sect. 8(a) Minority Enterprise Development Program of the Small Business Administration, as well as support from the Department of Commerce's Office of Small and Disadvantaged Business.
On the corporate front, the National Minority Supplier Development Council (NMSDC) reports that it added 50 companies to its national roster last year, and minority purchasing by corporate members rose 17 percent from 1998 to 1999 (from $41.0 billion to $47.8 billion), the most recent years for which data is available.
The continued importance of minority purchasing undoubtedly reflects America's changing demographics. Companies want their purchasing programs to mirror America's customer base which is increasingly multi-cultural. Within a decade to two, African Americans, Hispanics, Asian Americans and other minority groups are expected to make up nearly 50 percent of the U.S. population.
The Importance of Becoming E-Enabled
To experts like Maye Foster-Thompson, Executive Director of the Chicago Minority Business Development Council (MBDC), the real challenge today is dealing with technology, not the faltering economy. "Suppliers have to be electronically savvy," Foster-Thompson says. "All their systems have to be `e-ready.'" Purchasing and supply chain management is conducted in real-time at larger corporations. Just having a website may not be sufficient. MBEs must be interactive and be able to receive purchase orders electronically.
The NMSDC and its regional councils are helping MBEs become more savvy technology users. Last year, for instance, the Chicago MBDC offered its supplier members a six-week course in e-business including case studies and a variety of perspectives. This year it plans to offer an even more sophisticated version of the seminar.
Purchasing Consortiums Spring Up
The rapid growth of the internet has fostered this transformation. Today, many large companies give their buyers electronic purchasing cards. This may mean that a supplier must be electronically connected to the company's ordering system. At the same time, companies are creating large internet purchasing consortiums. Eighteen months ago, experts predicted these consortiums would replace person-to-person purchasing relationships. But that hasn't happened. Many major corporations are still engaged in building their own private exchanges, and some are making special efforts to ensure inclusion of first-tier minority suppliers.
What should minority suppliers do right now to remain competitive -- or even grow -- within the present uncertain environment? To some degree, the answer depends on where a company finds itself on the growth curve.
When Starting a Business
For those starting a business, planning is critical. The Internet makes this easier than it was in the past. Prospective entrepreneurs can access websites of the Small Business Administration and other organizations that offer a wealth of information. Such research can correct misconceptions about what it takes to start a certain business.
MBEs in Transition and Growing
Small to medium-sized MBEs should take the following steps:
* Apply for certification as a minority business
The National Minority Supplier Development Council has a certification process for minority businesses, as do state and local governments, as well as the Small Business Administration. Becoming certified may open new doors for a business, since many companies turn to databases of certified companies when looking for MBE suppliers.
"We are very aggressive in marketing our MBEs," explains Dinah Lovett, Executive Director of the Central and South Texas Minority Business Council (MBC) in Austin. "Scalable databases are wonderful, but passive." For this reason, her regional council created a Quick Response Team to scour its own database rapidly in response to corporate inquiries. "Getting to the right person is our biggest challenge," she says.
* Participate in networking events.
Attend as many MBE annual conferences or networking events as possible. These activities can translate quickly into useful contacts or even contracts.
Dinah Lovett recalls the results of a recent networking luncheon in her region. At that event an executive from one of her MBEs, Vic Garcia of Applied Data Resources (ADR), met Cheryl Bradley, an executive at GTECH, a gaming company that operates lotteries in 32 states and 26 countries. The very next day ADR nailed down a small contract for toner cartridges from GTECH, and soon after, ADR was able to win a much larger contract.
* Become E-Enabled.
Organizations supporting MBEs frequently offer e-business training and seminars.
* Develop strategic alliances. While certain partnerships may be unrealistic, small MBEs can forge informal alliances with companies of similar sizes in related fields. Such alliances can lead to fee-sharing and broaden the scope of both companies.
* Stress customer service
Personal service is still what differentiates one company from another. Whether you operate on the web or not, make sure you and your employees are responding to your clients need with the added value they expect today.
* Don't forget the basics.
Develop a business plan, website, and other fundamentals. These will give you the groundwork you need if you decide to expand or find that you have received a contract that requires greater financing.
Larger MBEs Face Different Challenges
For the fastest-growing MBEs, future success may depend upon developing and implementing the right strategic plan. A number of consulting firms now specialize in this. Ralph Moore, for instance, has developed a model that he uses to inspire and guide MBE expansion and growth. It starts with a "traditional" model of the owner/entrepreneur-centered MBE and moves on as the company becomes an "advanced supplier" able to fulfill national contracts, and, finally, to a position as a "world-class business partner" with international capabilities. (For more information, contact firstname.lastname@example.org.)
Riding Through the Rough Waters
Right now, it's too soon to tell how the economic downturn will impact MBEs; or even whether or not the new, more conservative administration of President George W. Bush will support, ignore or thwart the growth of minority suppliers.
However, what is clear is that the economy has slowed considerably. To survive and thrive, minority-owned businesses must simultaneously go back to basics and become more aggressive marketers. Good ways to do this include networking more actively, creating alliances and the proactive use of the Internet. Only by being the best at what they do and adding value will companies, large or small, thrive in today's new more competitive, global environment.
BellSouth Corporation Atlanta, Georgia
"The trend of minority population growth, coupled with the fast-growing small business segment, makes it essential that we forge relationships with suppliers who represent these constituency groups," said Ron Frieson, BellSouth's Chief Diversity Officer.
The recent naming of Ron Frieson as the corporation's Chief Diversity Officer is another step toward the fulfillment of BellSouth's commitment to achieving excellence in the area of diversity and inclusion. One of his responsibilities is to ensure that BellSouth's diversity efforts are included in all external business activities, including the alignment of marketing, advertising and purchasing initiatives to reflect the diversity of its customers.
According to Debbie Stone, Corporate Supplier Diversity Manager, BellSouth is very proud of its diversity efforts, and takes its commitment seriously enough to go beyond what is expected. For example, BellSouth requires large companies who do business with the company to include minority and female-owned companies as subcontractors in executing their BellSouth agreements. In addition, BellSouth requires its large prime contractors to provide quarterly reports documenting their results in this area. BellSouth has also initiated strategic business alliances with its major suppliers by encouraging them to participate in joint ventures with minority and women-owned companies in its region.
BellSouth will continue to develop innovative approaches to seeking and developing its minority and female-owned suppliers. It will work to further incorporate supplier diversity as an integrated business strategy and not simply a "program of the month".
Coors Brewing Company
Coors Brewing Company is committed to diversity in the marketplace and the workplace. Supplier Diversification and Development (SD&D) is an integral part of Coors' overall commitment to diversity. Our SD&D program is inclusive and seeks to broaden the pool of suppliers that want to do business with Coors. Businesses from the following groups are part of the SD&D program.
* African Americans
* Asian-Indian American
* Asian-Pacific Americans
* Hispanic Americans
* Native American Indians
Coors actively solicits qualified suppliers. Coors wants to establish mutually beneficial relationships that can turn into long-range partnerships.
A member of the National Minority Supplier Development Council, Coors supports local and regional minority supplier development councils throughout the nation.
We support Minority and Women Business Entrepreneurs (MWBEs) by participating in business networking exchanges, seminars, special events and trade fairs and by making direct and in-kind contributions to MWBE programs.
It is the policy of the Coors Brewing Company to ensure that minority and women owned businesses have opportunities to participate in providing materials and services required by Coors.
Strengthening the minority business community economically contributes to overall economic growth and the expansion of our markets. By forming partnerships with minority and women suppliers, we will drive their growth and development and we will assist them in fulfilling our expectations for quality, delivery and cost of goods and services.
At Coors, we give minority and women business an opportunity to compete with all other suppliers in the competitive marketplace.
For additional information or to receive a supplier datasheet, please contact:
Coors Brewing Company Attn: Colleen Mayer or Liz Wayland P.O. Box 4030/BC525 Golden, CO 80401-003 e-mail: email@example.com or firstname.lastname@example.org
J.P. Morgan Chase & Co.
At J.P. Morgan Chase & Co., diversity continues to be a top priority. Throughout the merger that created JPMorgan Chase, the company has continued to institutionalize supplier diversity at all levels and to ensure that Minority and Women Business Enterprises (MWBEs) participate in each step of the procurement process.
For the year 2000, JPMorgan Chase increased its expenditures with minority and women-owned firms by 39% to $356 million. MWBEs bid more competitively across products and services categories, and won larger dollar contracts in areas related to technology/telecommunications, transportation, fax equipment, janitorial and travel services.
The JPMorgan Chase Supplier Diversity Program (SDP) has expanded the roles of minority- and women-owned suppliers beyond the traditional procurement areas and into professional and technical services. Formally established in 1994 as part of the ,company's Community Development Group, the SDP's mission is to ensure that MWBEs have an equal opportunity to do business with JPMorgan Chase. Over the past seven years (1994-2000), the company has spent more than $1 billion with MWBEs.
In 1998, the company launched "Partnering for Success," a series of internal customized events that provide MWBEs with better access to information, contracting opportunities, decision-makers, management expertise and financial services. Throughout the year MWBEs have the opportunity to attend a series of in-house trade shows, buyer/supplier networking events and business management seminars. These events have helped deepen business relationships for many of JPMorgan Chase's incumbent MWBE suppliers, while providing a forum for prospective MWBEs to build new relationships with the company.
The Supplier Diversity Program and Corporate Business Services (CBS), the shared services organization responsible for procurement at JPMorgan Chase, work together to identify opportunities and the suppliers that can best fulfill them. For example, last year United Building Maintenance Corporation (UBM), a participant in the SDP, won a five-year, $51.6 million general cleaning contract with the company's Real Estate Business Services group, a division of CBS. Headed by the father and son team of Oliver and Sharad Madison, UBM maintains JPMorgan Chase's retail branch network of over 200 locations in New York City. Founded in 1991 with 40 employees, this New York-based full-service janitorial cleaning company has over 600 employees serving the New York tri-state area.
Corporate vice chairmen David Coulter and Donald Layton serve as co-chairs of the program's Supplier Diversity Council. "Our progress over the last seven years has been tremendous," says Layton, "and we look forward to the year 2001 as an opportunity to raise our program to greater heights." Adds Coulter, "Our goal is to further build our relationships with minority- and women-owned firms, and to set new standards for supplier diversity programs in our industry."
For more information visit our website at www.chase.com/cdg/supplierdi versity.
Nordstrom is a fashion specialty retailer of apparel, shoes and accessories for men and women with 122 store locations and sales of 5.4 billion.
This Supplier Diversity program was established in 1989.
Key elements of program: to reflect diversity of the communities it serves through its store locations and as a business partner with thousands of vendors.
Products and services purchased: a wide variety of goods and services for retail sale and new store construction.
Dollars spent in 2000: $576 million with minority and women suppliers.
Certification is required. Types accepted: NMSDC, government agencies.
Contact: Barbara Best Valdez, Supplier Diversity Program Director, 206/373-4382 or Claude Greene, Corporate Diversity Program Coordinator, 206/373-4383.
Philip Morris Companies Inc.
The Philip Morris Companies - which includes Kraft Foods, Miller Brewing Company and Philip Morris U.S.A. - is strongly committed to supplier diversity because it is good for business. Minority and women suppliers, like small businesses in general, are often more innovative, faster and flexible than large companies. Having access to goods and services from the best and widest variety of suppliers is just common sense.
The Company's commitment to supplier diversity goes back to the early 1970s, when we began to work with minority vendors. In the early 1980s, we formalized the Supplier Diversity Program to partner with diverse businesses.
We are proud to have one of the strongest supplier diversity records in the country, and intend to continue and grow the program. In 1999, purchases from diverse suppliers exceeded $1 billion and Philip Morris increased spending to $1.3 billion last year.
On March 28, Philip Morris hosted the first Supplier Diversity Billion Dollar Roundtable (BDR), an initiative of corporations that spend over $1 billion annually with minority- and women-owned businesses. The company and nine other charter BDR members collectively purchased more than $18 billion in products and services last year from diverse suppliers. At the event, companies pledged to continue to work together to increase opportunities for diverse suppliers.
While peer recognition is always important for companies, it is feedback from suppliers that is most meaningful. George Hill, president and chief executive of Adhesive Systems, Inc., who has worked with Philip Morris for six years said, "Philip Morris is a catalyst company that understands the importance of building wealth and employment in minority communities. It takes great effort and integrity to run a program that truly identifies, develops, and sources minority companies committed to customers and the community. Philip Morris does this with compassion, concern and real interest."
For more information on Philip Morris' diversity programs, visit www.philipmorris.com.
Pitney Bowes Inc.
Pitney Bowes, Inc. recently streamlined the process for minority and women-owned suppliers to register their capabilities with the company through a partnership with DIV2000. This includes launching a web link, www.DIV2000.com/PitneyBowes, providing broader access to information about Pitney Bowes' purchasing needs and its supplier diversity program.
Computer Consulting Associates International Inc. (CCAII), a minority owned firm, launched DIV2000 in 1999. Pitney Bowes was one of the first Fortune 500 companies to list their opportunities on the diversity website.
"Through this initiative, Pitney Bowes decision-makers can go to a centralized database of minority and women-owned businesses when procuring services and goods. The desktop access to information about these suppliers enhances the speed and quality of our procurement decision-makers," said Henry O. Hernandez, Jr., executive director, Global Diversity Leadership, Pitney Bowes Inc.
Pitney Bowes procurement levels with minority and women-owned businesses grew 10 percent in one year, from $52.5 million in 1999 to $57.5 million in 2000. Its participation in DIV2000 strengthens its ability even further to build many more productive relationships with minority and women suppliers, which is a key part of the company's business strategy, according to Hernandez.
"Additionally, as we build supplier relationships, we want to make these businesses aware of what Pitney Bowes can offer to support their needs. So, in our portion of DIV2000, we have included a link to PitneyWorks sm," said Hernandez. "PitneyWorkssm provides a number of web-enabled marketing, shipping, mailing and financial products and services to increase the efficiency and effectiveness of small growing businesses."
For more information about the company, visit www.pitneybowes.com.
Telcordia Technologies, previously the research and development arm of the Regional Bell Operating Companies (RBOCs), entered the competitive telecom marketplace in 1997 when the company was acquired by employee-owned SAIC (Science Applications International Corporation).
After the acquisition, Telcordia moved quickly to achieve the reputation of a leader in the competitive global telecommunications marketplace and is now known as one of the world's largest providers of operations support systems, network software and consulting and engineering services to the entire telecommunications industry.
To further cement the company's position as an industry leader, Telcordia recently made a firm commitment to launch a supplier diversity initiative to diversify its supplier base and fulfill the obligations and expectations of numerous customers.
The Telcordia Technologies Corporate Procurement Organization established the Supplier Diversity Initiative in 1999 to help assure that all qualified and certified suppliers, who have an interest in doing business with Telcordia, are given the maximum practical opportunity to do so.
Telcordia is committed to seeking out opportunities to procure products and services from small businesses and businesses owned, controlled, and operated by either minorities, women, or disabled veterans.
Our Supplier Diversity Initiative was created to carry out this commitment. This initiative does not compromise total price, quality, or service, but helps to ensure that businesses that may have been overlooked in the past are included in the bidding process. Our corporate goal is to position Telcordia as a leader in Supplier Diversity as viewed by our customers, suppliers and community.
Suppliers who can complement Telcordia core business areas are encouraged to register their companies with the Telcordia Supplier Diversity Office. Please visit our web site, www.telcordia.com/aboutus, for more information.
Verizon Communications Inc.
Verizon Communications Inc., and its predecessor companies Bell Atlantic and GTE have a long-standing commitment to supporting minority and women-owned businesses. The company is a charter member of the elite Billion Dollar Roundtable (a project of Minority Business News U.S.A. and Women's Enterprise magazine) and one of the country's top 30 corporations for supplier diversity, according to Working Woman magazine.
In 2000, Verizon purchased more than $1.3 billion in goods and services from diverse suppliers. Next year the company plans to increase its expenditures with women and minority-owned suppliers by spending at least 16 percent of its procurement budget with these businesses.
Verizon Corporate Sourcing actively recruits qualified minority and women suppliers to submit competitive bids. To help diverse suppliers do business with the company, Verizon holds seminars to assist firms in responding to Verizon's request for proposals, understanding quality requirements and implementing e-business technologies.
Verizon also joins forces with advocacy groups dedicated to business development including the National Minority Supplier Development Council (NMSDC), the Women's Business Enterprise National Council (WBENC), the United States Hispanic Chamber of Commerce (USHCC), regional purchasing councils and local chambers.
Minority suppliers can register their business online and find more information at www.verizon.com/diversity/suppliers.
Verizon Communications (NYSE: VZ) is one of the world's leading providers of communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States, with nearly 109 million access line equivalents and more than 27.5 million wireless customers. Verizon is also the world's largest provider of print and online directory information. A Fortune 10 company with approximately 260,000 employees and more than $63 billion in annual revenues. Verizon's global presence extends to 40 countries in the Americas, Europe, Asia and the Pacific. For more information on Verizon, visit www.verizon.com.
Boeing Supplier Diversity Programs
The Boeing Company's mission is to be the corporate leader in promoting and providing opportunity for small business, small disadvantaged business and women-owned small business concerns; historically Black colleges / universities and minority institutions. We strive to maximize opportunities to provide quality high technology products and services in support of our major programs.
"In the last 45 years of having a Small Business Program, we have come to really appreciate the importance of small businesses to our company--and to our country. Often overlooked is the fact that many of the small businesses supporting Boeing are exporters of American products in their own right, through us. We look forward to many more years of working together." Phil Condit, Chairman and CEO
If you are a small disadvantaged business interested in furnishing products and services to the company, please contact Materiel personnel. Our buyers welcome the opportunity to talk with you in order that they may be fully aware of the latest developments concerning new or substitute parts, materials or services, together with price and quality changes. We welcome suggestions.
When scheduling a visit, suppliers are urged to be well prepared to present and discuss the capabilities of their company. To conserve everyone's time, we ask that appointments are made with the individual you wish to see. Suppliers without an appointment may be asked to schedule one and return at a later time. Materiel personnel will arrange for special presentations or demonstrations at the request of Boeing technical personnel or at their own discretion. In all cases, technical advice or assistance must be provided only with the prior knowledge of Materiel personnel. To learn more about opportunities at Boeing contact the location nearest you; St. Louis, MO (314) 234-3614, Seal Beach, CA (562) 797-1355, Renton, WA (253) 657-8013. Or visit us at www.boeing.com/sb.
Federated Department Stores Inc.
Federated Department Stores Inc.
For more than a decade, we have successfully operated our Vendor Development Program, providing opportunities for minority-owned businesses to supply goods and services to Federated Department Stores, Inc. Over the past five years, we have procured $868.7 million from certified minority-owned businesses, $207 million for 2000, and the program continues to grow.
The mission of our Vendor Development Program is: "To foster a system of purchasing that allows the corporation to meet its needs and goals and create an effective, fair and considerate arena of competition which includes all possible sources." Our program seeks qualified minority-owned vendors and suppliers to become potential business partners with Federated to deliver the products and services that will aid us in achieving our corporate objectives. At the same time, it is our hope that this relationship will foster the growth and development of our business partners, as well as the communities we serve.
Building upon the success of our Vendor Development Program, we are continuing to explore new areas of opportunity to become more inclusive in our supplier base. Whether it is operating supplies, merchandise or store construction and remodeling, we are seeking to develop partnerships that are mutually beneficial.
Federated has even expanded our program to reach minority suppliers who may not have the resources to deal with us directly. For example, we might purchase our office supplies from a large chain store in which a minority-owned manufacturer may actually have provided the pencils received in our order. In addition, we also encourage our suppliers to joint venture with minority vendors.
Federated will also participate in a number of conferences and business expos which will create additional opportunities for us to meet suppliers throughout the year. Working with organizations such as the National Minority Supplier Diversity Council, the Urban League, as well as regional and local organizations, we are determined to build upon and expand our relationships with minority-owned and women-owned businesses.
At Federated, our Minority Vendor Development Program is more than good will. It is good business.
Supplier diversity is playing a bigger role in corporate America as a result of the changing demographics. BellSouth Corporation, whose nine-state region has one of the largest minority concentrations, has recognized this and has made supplier diversity a part of its corporate strategy.
One of the key reasons UPS is able to maintain its position as a business leader is the company's successful relationship with its suppliers. The UPS Supplier Diversity Program works to ensure business opportunities for minority- and women-owned businesses, stimulating economic growth in communities nationwide.
UPS maintains a high level of activity in such organizations as the National Minority Supplier Development Council (NMSDC). In addition to participating in conferences and serving on advisory boards, UPS mentors businesses and provides UPS employees as loaned executives. UPS's involvement with minority and women business organizations allows the company to interact with potential suppliers and discuss UPS's procurement needs and requirements.
One such supplier is Eddie Smith, president of Atlanta-based E. Smith Box Inc. Smith provides "Big Brown" with those familiar boxes for UPS Next Day Air (and UPS 2ND Day Air (deliveries. E. Smith Box also provides UPS with 70-pound containers to secure packages in need of repair. Since Smith's business relationship began with UPS in the early 1990s, his company has grown from 20 employees to 45. Fifteen employees are dedicated solely to servicing the UPS account.
The partnership between E. Smith Box Manufacturing and UPS is ongoing and mutually
beneficial, according to Smith. "UPS is a major player for us right now," he says. UPS
contracts represent about 5 percent of the company's volume, and it continues to grow.
For additional information on the UPS Supplier Diversity Program, please visit the UPS Internet Pressroom at www.pressroom. ups.com, and visit UPS Community Crossroads at www.community .ups.com to apply online.
Delta Air Lines
Delta Air Lines is committed to providing procurement opportunities to Minority and Women-Owned Business Concerns (M/WBEs). Our vision is to transform our Supplier Diversity Program into a "highly recognized, fully integrated World Class Process". The key element of success tie in our ability to establish partnerships with certified M/WBEs that can provide quality products and services in a competitive and global environment.
Our industry is constantly changing to meet customer demands. These changes impact business operations and require us to implement a quality process to better manage total cost within the supply chain. Delta has embarked on a course to maintain a competitive edge in the global marketplace by maximizing value through strategic partnerships. Successful partnerships with M/WBEs are key to this new business environment.
In an effort to strengthen current relationships with M/WBEs, our supplier development initiative is being enhanced. As part of our strategy, we encourage and foster relationships between our M/WBEs and first tier suppliers, as well as other corporations. High performance and competitive pricing led us to recommend GPR Aviation Interiors (Atlanta based, minority-owned) to companies such as The Boeing Company, Southeast Airlines and Weber Aircraft. GPR provides Delta with carpet panels, seat covers, insulation blankets and cargo nets. As a result, GPR is now a part of Boeing's mentor program. We are very proud of this and other successful partnerships that have been formed over the years. Our plans are to continue to build these relationships and form new ones in the future.
Delta continues to explore strategies to leverage needed resources and support for increased opportunities for M/WBEs. Companies interested in procurement opportunities at Delta should contact our office at email@example.com.
Sprint's Supplier Diversity Initiatives
Sprint began its Supplier Diversity initiatives in 1987 with one employee and the same goal as many other companies - to be inclusive in their contracting and purchasing activities. Today, Sprint has an executive and 13 full time employees dedicated to identifying, promoting and introducing qualified diverse suppliers to it's corporate buying community.
Over the life of Sprint's supplier diversity initiatives, Sprint has awarded contracts totaling over $8 billion in business to small, minority- and women-owned suppliers. A diverse supplier base provides higher quality products, competitive prices and a broader array of solutions. These relationships help diverse suppliers succeed and Sprint gain a more competitive supplier base. In 2000, Sprint purchased $454 million in goods and services from minority and women owned suppliers, a 39% increase over 1999 spend. Additionally, Sprint received the Corporation of the Year and CEO Advocate of the Year awards from the Kansas City Minority Supplier Council for 2000.
Research firms estimate that by 2005, ethnic consumers will purchase more than $65 billion in telecom services the equivalent of half of today's consumer telecom market. Direct spend with minority and women owned firms represents the single biggest economic impact to the minority community through increased wealth, job creation, reciprocal economics and improved quality of life. In order for Sprint to succeed, diversity is at the forefront of our business practices.
In the future, Sprint will focus on high-speed Internet and wireless services. The Supplier Diversity Department's initiatives will center on identifying and promoting diverse suppliers who can help us meet those needs. Companies desiring to do business with Sprint can register online at www.sprint.com/sprint/diverse. After your registration has been processed, all third-party certified suppliers will be forwarded to a Supplier Diversity Administrator for further promotion within Sprint.
Diversity gives Sprint a formidable competitive strength-strength that comes not despite our differences, but because of them.
Johnson & Johnson
Johnson & Johnson increased spending with Minority and Women Owned Businesses Enterprises (MWBE) by $77 million, to a record $430 million in 2000 demonstrating its ongoing commitment to creating a diverse supplier and customer base. "Experience has made us keenly aware of the critical impact that diversity brings to all areas of Johnson & Johnson. When our company closely reflects the wide-ranging perspectives and values of the world in which we live, we enhance our relationships with that world and we enrich our own environment," says Ralph S. Larsen, chairman and CEO of Johnson & Johnson.
Johnson & Johnson, with approximately 97,800 employees, is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical and professional markets.
Johnson & Johnson has outreach efforts to identify minority and women owned businesses suppliers and to educate employees about their services. In addition, each operating company of Johnson & Johnson appoints a liaison to go into the local community and identify MWBE suppliers to serve the local company's needs.
Last year Johnson & Johnson introduced its online Internet response system, which enables potential and certified suppliers to register on www.jnj.com. The information is immediately downloaded to the electronic database. "By implementing this system we ensure that all suppliers can be instantly available for potential procurement opportunities with Johnson & Johnson and the Family of Companies," says Teresa Fedec, director, strategic sourcing, Johnson & Johnson.
Minority suppliers create the promotional packaging for such well-known brands as Tylenol and Pepcid AC, and the marketing sales support materials for many of the company's major pharmaceuticals. Johnson & Johnson companies also contract with minority and women owned businesses to provide many other services and supplies, including medical research, construction, manufacturing tooling, printing, software and computer peripherals.
At Qwest, we understand our markets and the role suppliers' play in helping us achieve competitive advantage. Minority and women-owned businesses are a valued part of our team and integral to our bottom line success.
Today, Qwest is fast becoming a data-centered communications company, offering a wide array of products and services ranging from wireless, Internet, data and video, to long distance and voice connections. As we continue to develop innovative and integrated services, we will continue to rely on our diverse supplier network to help us connect more than 25 million residential and business customers to the services and products they need. This is more than a commitment or strategy. It's smart business.
The Supplier Diversity Organization will be recognized as an asset to Qwest by ensuring the inclusion of diverse suppliers in the procurement process.
The Supplier Diversity Organization will bring value through the utilization of Minority/Women-Owned Business Enterprise (M/WBE) suppliers to reduce costs, grow Qwest markets and increase customer loyalty. Qwest Communications International, Inc., affirms its commitment and pledges its full support to employment opportunity for all persons and has implemented the following policy:
MWBE Supplier Business Opportunities
Qwest and its prime suppliers have various opportunities for Minority-and Women-Owned Businesses. M/WBEs are encouraged to check listings frequently since opportunities are updated as they occur.
Qwest requires all current and potential M/WBE suppliers to provide a valid M/WBE certificate, company marketing information and a Supplier Diversity Information Form.
Please understand the submittal of requested documentation and the subsequent evaluation process is not a guarantee of work.
Additionally, M/WBE suppliers must be in compliance with Qwest policies and procedures, and the following information should be reviewed:
* MWBE Application Information
* Certification Verification Process
* Minority- and Women-Owned
* Business Definitions
What We Do
Someone once said commitment is what you do, not what you say. By that measure, Toyota Motor Manufacturing North America has demonstrated a long-standing commitment to supplier diversity. In 1997 we publicly announced new MBE sourcing targets of 5% for Tier I and 5% for Tier II purchases by the year 2002, and we are on track to meet or exceed these goals. Our pledge to reach these targets placed Toyota squarely in line with industry standards, confirming our steadfast commitment to minority supplier development.
This commitment is anchored to a five-cornered foundation:
* We actively pursue MBE suppliers.
* We champion supplier diversity throughout our organization.
* We provide technical support to prospective MBE suppliers.
* We administer a Tier II Sourcing Program among our Tier I suppliers.
* We participate in industry training sessions and workshops.
Our Tier II program represents an especially promising opportunity for MBEs. Through this program we strongly encourage our Tier I, or direct, suppliers to match our commitment to purchasing goods and services from MBEs. (Companies that sell to our Tier I suppliers are Tier II suppliers to Toyota.) One unique facet of our Tier II effort is an annual minority business trade show and conference we sponsor called "Opportunity Exchange," which provides a forum for NMSDC-certified MBEs to network directly with Toyota's Tier I suppliers. Since its inception 11 years ago, Opportunity Exchange has generated over $30 Million in contracts for minority suppliers. This year's event will be held in November in the Greater Cincinnati area.
Says T. Hudson, Coordinator of Toyota's Supplier Diversity Program, "Our Tier II initiatives, and our entire program, demonstrate our commitment to develop a supply base that reflects the diversity of our customers and the diversity of our team members who build Toyota vehicles in North America."
Tricon "WE'RE CUSTOMER MANIACS"
At Tricon Global Restaurants, Inc., we're "maniacs" about customer service, providing delicious food to our customers the world over, as well as bringing strong business partnerships. We recognize that supplier diversity is important for the growth of our company and to our diverse customer base.
The success of our supplier diversity program is due, in part, to the partnerships we've cultivated with several national minority and women's business organizations, such as: the National Minority Supplier Development Council, the Women's Business National Enterprise Council, the United States Hispanic Chamber of Commerce, and the U.S. Pan Asian American Chamber of Commerce. These groups, along with regional purchasing councils and minority chambers of commerce, are key resources for us in identifying minority and women-owned businesses to bring into our family of suppliers.
Our program's mission: Develop and facilitate strategic relationships with minority and women-owned business enterprises (M/WBEs), in reflecting our commitment to the communities we serve, our customers, and our shareholders. Through these efforts, the program works to advance the economic strength of communities where Tricon does business, while acquiring the high-quality products and services needed to operate the business.
Our Supplier Diversity Program is designed to:
* Actively and diligently seek-out qualified minority/women vendors for all possible company requirements;
* Provide essential links between diverse suppliers and corporate departments with purchasing needs;
* Implement practices that ensure each qualified M/WBE supplier has an equal opportunity to compete and participate- according to established policies and procedures
For more information and a list of Tricon/ UFPC purchased goods and services, visit our website at www.triconglobal.com.
FedEx Express takes its commitment to diversity seriously. The company was built on a philosophy that puts people first. That philosophy, People-Service-Profit, or P-S-P, maintains that when a company establishes a culture that is respectful and rewarding for employees, they will deliver exceptional service to customers. Customers, in turn, will reward the company with their business and loyalty, creating a profitable enterprise that can provide job satisfaction and job security for its employees.
FedEx Express has received many awards from organizations around the world recognizing us as one of the best places for minorities to work and for minority supplier opportunities. The company created a Corporate Culture and Awareness department in 1997 to ensure that our culture is sensitive and inclusive of the various cultures within our business environment.
"At FedEx Express, we feel the key to having a vital and diverse workforce is recognizing the common ground we all share while, at the same time, celebrating the differences that exist between us. These differences enrich us and make us stronger," says David J. Bronczek, president and CEO of FedEx Express.
FedEx Express, a subsidiary of FedEx Corp., connects areas that generate 90% of the world's gross domestic product in 24-48 hours with door-to-door, customs cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of more that 3.3 million items to 211 countries each working day. FedEx Express employs more that 150,000 employees and has more than 46,000 drop-off locations, 662 aircraft and 45,500 vehicles in its integrated global network. The company maintains electronic connections with more that 2.0 million customers via FedEx Powership(r), FedEx Ship(r)and FedEx interNetShip(r).
Hilton Hotels Corporation Advancing Diversity for a Diverse World
Historically, Hilton Hotels Corporation has sought to achieve a diverse workforce to respond to the diversity of the world's travelers.
Hilton also focuses on increasing diversity in all aspects of its business operations. Hilton's policy of inclusion encourages minority-owned businesses to create relationships with the company, both at the corporate and property level.
Last July, Hilton received recognition from Fortune magazine by being listed in America's 50 Best Companies for Minorities; and recently received a "Corporate Award" from the National Coalition of Black Meeting Planners for supporting inclusion of African Americans in Sales positions.
Over the past year, the world-class hospitality company has continued to push its diversity efforts in a variety of areas. Seven Homewood Suites (by Hilton Hotels were sold to an African American-owned company for $95 million, and Hilton entered into an agreement to manage those hotels. A Boston-based African American-owned financial management firm is now managing $30 million of the corporation's retirement plan assets. A New York-based African American-owned advertising firm has been retained to increase awareness among minorities on business opportunities and services offered by Hilton and its family of brands. An African American-owned PR firm, based in Los Angeles, will provide consultation on the corporation's charitable giving and involvement in Southern California's minority communities.
Hilton President and CEO Stephen Bollenbach has directed that diversity performance measurements be built into compensation bonus programs for high-level managers and executives. The Corporation also offers diversity training and materials to all of its owned and managed properties. For 2001, Hilton is preparing to launch a formal Supplier Diversity Program, which will be linked to the company's centralized e-commerce purchasing system. This will encourage minority-owned companies to become part of Hilton's supply chain. Basic program information can be obtained by calling toll-free 1-877-932-3322.
Hilton Hotels Corporation embraces diversity activities as a way of attracting and keeping the "best of the best." It is an integral part of the company's objective to "be the first choice of the world's travelers." Hilton is committed to advancing its diversity for this diverse world.
This Advertorial is sponsored and paid for by Hilton Hotels Corporation.
At Eastman Kodak, we consider it vitally important to explore all potential avenues for promoting the inclusion of diverse suppliers in our purchasing activities. As a prime contractor to the U.S. Government, compliance to mandate is, of course an important issue, but NOT the most important of our reasons for having a robust small business development program.
First and foremost, there is the obligation to the communities that we serve as our customer base. With women comprising half of the population and minorities growing to nearly 40% of the population in the coming decade, Kodak is keenly interested in including these demographics in our purchasing activities. Kodak is committed to be at (or near) benchmark in performance for the inclusion of diverse suppliers.
Supplier Diversity is also a strategic weapon. Engaging diverse suppliers gives Kodak the advantage of tapping the best, most agile and innovative suppliers possible. Inventive breakthrough and flexibility of application seldom occur as effectively in the Fortune 500 companies as in small, nimble enterprises. Companies that fail to optimize opportunities for these businesses will do so at their peril.
Kodak has benefited from having a Small Business Office as an integral part of the purchasing organization since 1989. From inception, the total dollars and the percentage of total purchases sourced with woman-owned, minority-owned, and disadvantaged businesses has exhibited healthy and steady growth. Kodak has received recognition and a number of awards for our Small Business program. Kodak's Chief Purchasing Officer has assured that all purchasing personnel are accountable for continued openness to diverse suppliers by making it part of every (himself included) individual's performance commitment.
If your company is agile and innovative - if your company offers products and services that will excite and exceed expectations -- if your company can provide Kodak with creative ways to improve effectiveness, efficiency and productivity -- we want to know about you. Please contact Kodak's Small Business Office at (716) 588-0690 or send an e-mail to: firstname.lastname@example.org.
Wal-Mart Stores Inc is continually improving their Supplier Development Program. Beginning in 1994, the program has developed substantially, each year. Last year, Wal-Mart reached a milestone of $1 billion dollars with minority- and women-owned businesses. Wal-Mart Stores, Inc. was inducted and recognized in April 2001, as the only retailer, among ten (10) top U.S. corporations that surpassed the billion-dollar mark at the Billion-Dollar Roundtable held in New York.
Excell La Fayette, Jr. has headed the department for the past three years, directs Wal-Mart's Supplier Development Program. "Each year, our program and supplier relationships have grown. Our goal is to get the best products for our customers at the best price and identify and source good minority- and women-owned business to our buying staffs."
"In this year of cautious spending by our consumers, we have to have the best quality at the best price, no matter where we purchase. We recognize that every supplier that approaches us cannot become one of our suppliers, but we try to be honest and fair and open about our processes, and not waste their time."
In September 1998, we initiated a local purchase initiative as an avenue for our smaller suppliers to supply Wal-Mart. Each year, the success of this initiative has been positive.
Recognizing that we have to simplify and speed up our processes, we are developing systems that will take 50% of the paper handling out of our process. We are currently initiating a system that will be web accessible and the supplier can communicate initially by e-mail or the Web. We believe this will cut time and paper cost out of our process and make it more efficient.
Wal-Mart Stores, Inc. is a member of the National Minority Supplier Development Council (NMSDC) and the Women's Business Economic National Council (WBENC).
The Cable Industry is Committed to Supplier Diversity
The cable industry, comprised of cable television companies operating systems in 11,000 communities nationwide, programming networks, and related equipment suppliers, is wholly committed to promoting diversity, especially among the suppliers from whom its companies buy their goods and services. Working through its primary trade association, the National Cable & Telecommunications Association (NCTA), the industry has in place programs and initiatives to ensure that its goal of supplier diversity is reached. NCTA's Cable's Diversity Connection public affairs effort has as a key component a major supplier diversity initiative, Cable's Supplier Diversity Connection. The goal of this initiative is to increase the use of women- and minority-owned businesses serving the cable industry.
An integral component of this initiative is the www.cablediversityconnection.net website, which serves as a major "connection" vehicle for buyers and suppliers. This website features a clearinghouse of cable companies' purchasing profiles, as well as links to databases of certified women- and minority-owned businesses that offer products and services of interest to the cable industry. NCTA's partnerships with the Women & Minorities Business Exchange (affiliated with Working Woman magazine), and the National Minority Supplier Development Council, have significantly enhanced our supplier diversity effort, and have offered these organizations' certified suppliers easier access to the country's top telecommunications companies.
Golden Opportunity for Suppliers in June
NCTA's annual convention serves as an excellent forum for the cable industry and suppliers to meet and establish mutually beneficial working relationships. In conjunction with Cable 2001, NCTA's 50th Annual Convention & International Exposition, we are extending a complimentary invitation to women-and minority-owned business representatives to attend a two-day supplier diversity program on June 12-13, 2001 in Chicago at the McCormick Place Convention Center. Suppliers will have ample time to visit the trade floor, featuring more than 350 exhibitors, to meet with cable company representatives. For more information, contact Helen Dimsdale of NCTA, at email@example.com or visit www.cable2001.com.
The Coca-Cola Company Expands Commitment to Comprehensive Empowerment and Entrepreneurship Program
As part of a comprehensive program announced by Doug Daft, chairman and chief executive officer, The Coca-Cola Company has launched several initiatives to support diversity through empowerment and entrepreneurship in the U.S.
These initiatives include:
* A five-year, $1 billion commitment announced in May 2000 to a Company-wide Empowerment and Entrepreneurship Program, including a commitment to spend $800 million dollars with minority and women-owned suppliers.
* Increased spending with minority and women-owned businesses and a commitment to foster a climate of entrepreneurial opportunity through targeted minority supplier identification and a new supplier mentoring program. This will increase spending with minority and women-owned businesses by more than 50 percent to an average of $160 million per year over the next five years.
* The appointment in April of Ms. Johnnie B. Booker as Director of Supplier Diversity. Ms. Booker, a recognized expert in the field of diversity, will focus on developing and implementing The Company's supplier diversity strategic framework and work directly with business unit leaders to develop strategies to deliver on their minority and women-owned supplier spending goals. Ms. Booker, a leading management consultant in the employment and supplier diversity fields, has served as director, Office of Equal Opportunity, for the Federal Deposit Insurance Corporation and as vice president, Resolution Trust Corporation, in Washington, D.C.
* The formation of a blue-ribbon Procurement Advisory Council, composed of respected business and community leaders, to advise the Company on developing strategies for increasing purchases from minority and women-owned suppliers.
In addition, The Company has doubled its investment in the National Minority Supplier Development Council Business Consortium Fund from $500,000 to $1 million.
The Coca-Cola Company also recently signed an agreement to become, a founding member of MeritSpan, a minority-owned Internet portal that links minority and women-owned suppliers of goods and services with Fortune 500 companies. As a member of MeritSpan, the entire Coca-Cola system will be able to electronically access and work with minority and women-owned suppliers throughout the e-marketplace.
For information about becoming a qualified vendor with the Coca-Cola Company, please contact our Supplier Diversity Program office at 404-676-5767.…
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: To Compete during Economic Uncertainty, Minority Suppliers Must Network, Form Alliances and Conquer the Internet. Contributors: Klimley, April W. - Author. Magazine title: Black Enterprise. Volume: 31. Issue: 11 Publication date: June 2001. Page number: 291. © 2007 Earl G. Graves Publishing Co., Inc. COPYRIGHT 2001 Gale Group.
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