Fundamentals of a New Minority Supplier Development Process

1. Fundamentals of a New Minority Supplier Development Process

2. Opportunities AssessmentEducation & Training Kenyatta Lewis Executive Director, Supplier Diversity

3. Headquarters: Las Vegas, NV • (operate in NV, MI, MS & China) • 62,000 Employees Worldwide • $1.4 Billion Annual Biddable Spend • 42,000 Hotel Rooms in Las Vegas • 3 Million Sq. Ft. of Convention Space • 2 Arenas, 15 Theaters & Showrooms • 400 Retail Stores • 350 F&B Outlets

4. RGMA 5 Levels of a Supplier Development Process

5. Diversity Awards & Recognition • Corp. of the Decade – NvMSDC • Corp. of the Year – WBEC-West • 40 Best Companies for Diversity • –Black Enterprise • Top 10 Companies for Latinos • –DiversityInc Magazine ~Creating opportunities for all Now that’s Inspiring~

6. Structure Supplier Diversity Strategic Sourcing GLOBAL PROCUREMENT Corporate Purchasing Supplier Diversity is one of four disciplines within Global Procurement. The focus is to identify and engage certified diverse owned businesses in the procurement process. Materials Management

7. Tier I Bid Policy Tier II Inclusion Purchases $1,000 to $2,500 require minimum of two qualified bids inclusive of a Certified Diverse Supplier. Purchases >$2,500 require minimum of three qualified bids inclusive of a Certified Diverse Supplier. …Please be advised that MGM Resorts will accord a higher value to your proposal in response to this bid, in the bid evaluation process, if your proposal demonstrates bona fide participation in your provision of goods and/or services by a certified diverse business. A copy of the respective certification must accompany the bid. Use of a diverse owned business simply as a “pass-through” entity which lacks any substantive involvement in the performance of the engagement is not acceptable to MGM Resorts.

8. Identify MBE Opportunities

9. Sourcing Process Integration Supplier Diversity team engagement

10. Internal Training

11. External Education

12. Supplier Development & Supplier Diversity Communication Darren Harmon Director, Supplier Diversity & Business Development General Mills

13. General Mills: One of the World’s Largest Food Companies • One of the world’s largest food companies • Products marketed in more than 100 countries on six continents • 39,000 employees • $17.8 billion in fiscal 2013 net sales*

14. GMI Nourishes Lives through the SD Platform Annually, GMI solicits feedback from our top 100 diverse suppliers in the following areas: • Employment • Philanthropy • Revenue Growth • Supplier Diversity Spend

15. GMI Supplier Diversity Moving Towards a World Class Process 2013 Recognition • MMSDC Corporation of the Year • “Best of the Best” Supplier Diversity Programs • Professional Woman’s • Hispanic Network

16. Effective Communication is Critical to Our Success • Our communication tools are used to drive awareness, engagement and execution of supplier diversity initiatives • Core Audience • Buying Community • Senior Leadership • Diversity & Inclusion Dept. • Public Relations Dept. • GMI Customers • GMI Consumers • Local & National Advocacy Organizations • Key Messaging • Value Proposition • Impact aligns with corporate strategy • Community Impact • Performance • C-Suite Commitment

17. Websites are Efficient Communication Vehicles Communication Vehicles External Website • Monthly Reporting • SD Websites (internal & external) • Intranet “Champions” Stories • Employee Orientations • Annual Corporate Social Responsibility (CSR) report • Field & Functional Champions • Key Characteristics: • Easy to find on website (3 clicks) • Relevant Information • Statement on commitment • Registration Portal • Technology Idea Submissions • Videos highlighting SD in action

18. Suppliers Play A Vital Role In The Value Equation Value Collaboration, End to End Optimization Innovation, New Capabilities, Integrated Value Chain Optimize Total Delivered Cost, Shared Objectives Foundational, Consistency

19. Training & Performance Management Tools are Key to Supplier Development Training Performance Mgmt. Scorecards Periodic Reviews Continuous Improvement Supplier Summit Mentoring

20. Measurement & TrackingProcess Improvement Lynn A. Boccio VP, Strategic Business & Diversity Relations

21. Avis Budget Group (ABG) Overview • Founded in 1946 • 30,000 employees • 175 Countries

22. Avis Budget Group Recognition • Current State: • RGMA Level 4 to 5 – Advanced to World Class Process • Professional Woman’s Magazine • Women’s Business Enterprise National Council • Billion Dollar Roundtable (BDR) 2009 to Present • 2012 Women’s Business Hall of Fame (MBN News USA) • 2012 MBN USA Ambassador of Supplier Diversity (Lynn Boccio) • US Hispanic Chamber of Commerce • Top 50 Company in Supplier Diversity

23. Measurement & Tracking Determine Key Metrics • Link to Revenue • Diverse Spend vs. Total Spend • Spend By Diverse Status (MBE, WBE, LGBT, SDB, DBE, etc.) • # of Suppliers • Growth of Top Suppliers • # Diverse Contract Awards • # RFPs where Diversity “What gets measured gets done.”

24. Measurement & Tracking Consider Report Formats & Distribution at 3 Levels: Senior Management 1 Dashboard Supply Chain/ Strategic Sourcing 2 Spend by Category 3 Cross Functional Spend by Company and/or Cost Center

25. Measurement & Tracking Sample Report (Supplier Diversity/ Strategic Sourcing) Leverage Drill Down by Category, by Supplier

26. Diversity Supplier Registration & Maintenance Portal

27. Program Health / Process Improvement • Corporate Strategy • Organizational Structures • Geographic Footprint • Global Supply Chains Ongoing Change Once you get past the basics, remember: • Position SD to Support corporate strategy • Compliment Strategic Sourcing Strategies • Cultivate Primary Internal Drivers • Document Supplier Added Value • Focus on Supplier Development

28. Thank youQuestions?