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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. Roots of Supplier Diversity.

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

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Presbyterian church u s a climate for change task force

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


Roots of supplier diversity

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


Who are diverse suppliers

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)


Certifiable minority groups

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


Criteria for minority or women owned business enterprise m wbe certification

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.


Certifying agencies

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


Regional diverse supplier development councils

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


It s a process

It’s a Process!

It’s Business – It’s Legal

  • Identify

  • Qualify

  • Negotiate

  • Contract

  • Evaluate


Establishing a supplier diversity program

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


Establishing a supplier diversity procurement standard

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


Diversity supplier registration form

Diversity Supplier Registration Form

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


The codes

The Codes

  • SIC – Standard Industrial Classification

  • NAICS – North American Industrial Classification System

  • UNSPSC – United Nations Standard Products and Services Code


Technical assistance for m wbes

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


Second tier supplier diversity programs

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 model for diversity in the private sector

An Emerging Business Modelfor Diversity in the Private Sector

Corporate Social Responsibility

(CSR)

Workforce

Diversity & Inclusion

Supplier Diversity

Green Initiative &

Sustainability

Corporate Philanthropy


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