NAPM Dallas Making Minority Suppliers Part of Your Supply Management Strategy

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NAPM DallasMaking Minority SuppliersPart of
Your Supply Management Strategy

• Thursday
• February 8, 2007
• Dinner Presentation

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Marilyn Gettinger, C.P.M.

• President
• New Directions Consulting Group
• 908-709-0656
• mgettinger_at_aol.com

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Definitions

• Small and historically underutilized businesses
  (HUB)
• Minority Supplier
• Hispanic, Asian-Pacific, AsianIndian, Native
  American, Black American
• Woman-Business Enterprise 51 woman-owned
• Disadvantaged
• Small minority suppliers less than 10 million
  in revenue
• Large minority suppliers more than 10,000,000
  yearly revenue
• Federal small business 500 or fewer employees
• State 150 employees or less

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Definitions

• www.sbaonline.sba.gov
• Title 13 of the Code of Federal Regulations
  (CFR), Part 121

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Texas Building and Procurement

• Texas Government Code, Chapter 2161
• Markets the HUB program
• Certifies minority and women-business enterprises
  as HUBS
• HUB 51 ownership Asian Pacific, Native
  American, Black American, Hispanic American,
  American Woman

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Why a Minority/WBE/SBE Programs

• Micro view
• Government legislation
• Social responsibility
• Increased sales
• ISM Ethics Principles
• Alternative sources of supply
• Public relations
• Community relations

• Macro view
• Builds the economy
• Generates jobs
• 97 of new positions
• Increases the tax base
• Generates more spending power
• Expands Gross Domestic Revenue

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Evolution

• The U.S. Office of Minority Business Enterprise
  U.S. Dept of Commerce
• 1969
• Public Law 95-507 - 1978
• Federal contracts
• Over 500,000 for goods and services and
  1,000,000 construction

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Statistics

• Over 3.2 million minority businesses
• Over 9.1 million women-owned businesses

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Texas Statistics

• 1.81 trillion in 2002 up from 1.41 trillion in
  1997
• 1,734,648 firms an increase of 200,000
• 8,059,889 employees

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Texas Statistics
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Texas Statistics
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Texas Statistics

• Pacific Islander-Owned in 2002
• 1,543 firms
• 70 increase from 908 in 1997
• 277 million
• 5th nationally for number
• 3rd nationally for sales and receipts

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Supplier Challenges

• Communication
• RFPs/RFQs
• Funding
• Many hats
• Difficulty of getting into corporations
• Navigating the organization
• Payment
• Delegation and micro-managing
• Growth spurt
• Quality employees
• Work management
• Training and development
• Management style

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SupplysChallenges

• Qualified MBEs,WBEs, SBEs, DBEs
• Time commitment
• Mentoring and coaching
• Capacity
• Contingency planning

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Sources of Information

• http//www.pro-net.sba.gov
• Pro-Net Internet-based database containing
  information on more than 195,000 small,
  disadvantaged, HubZone, and women-owed businesses
• Free to government agencies seeking
  MBE/WBE/SBE/DAB
• Open to contractors seeking sub-contractors

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Certification Preparation

• Private companies
• Small Business Development Centers

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Certified MBE/WBE

• State government
• National Minorities Suppliers Development
  Council (NMSDC) www.NMSDCUS.org
• Port Authorities
• Women Business Enterprise National Council
  (WBENC) www.WBENC.org
• Other agencies South Central Texas Regional
  Certification Agency (SCTRCA)

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Certification?

• The contractor/supplier completes documents and
  pays a fee
• Principals of business
• Expenses in setting up business
• Classification of business
• Address, e-mail, phone, and fax
• Years in business
• Tax returns from the prior three years
• Sole proprietor, partnership, corporation,
  S-corp, LLC
• Notarized

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Information Resources

• Chambers of Commerce
• Trade shows
• www.mbemsg/com/html/calendar
• National Minority Business Council
• Small Business Development Center
• Dun Bradstreet
• National Association of Women Business Owners

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Information in Texas

• TEXAS  Central South Texas Minority Business
  Council Austin(512) 386-8766Dallas/Fort Worth
  Minority Business Council  Dallas(214)
  630-0747  
• Houston Minority Business Council  Houston(713)
  271-7805 
•  

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Information Resources

• Central Texas Minority Business Directory
• http//openpr.com/news/1149Central-Texas.Minority-
  Business-Directory
• kenmon_at_minoritydirectory.com
• 2007 DIR National Minority and Women-Owned
  Business Directory 38th edition
• 129
• www.diversityinforesources.com/minoritybus.shtm

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Information Resources

• Diversity Information Resources
• www.diversityinforesources.com
• Womens Directory of Women-Owned Business
  Organizations
• www.womenconnect.com/wbenc
• National Director of Minority-Owned Business
  Organizations
• www.sba8a.com
• Business Research Services, Inc.

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National Minority Supplier Development Council,
Inc.

• 39 minority Purchasing Councils
• www.nmsdcus.org
• 30 ownership
• Referral of corporate purchasers to minority
  supplies
• Education

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Chambers of Commerce

• Local minority chambers of commerce
• Encyclopedia of Associations - Gale

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Support Systems forMBE/WBE/SBE

• Small Business Authority (SBA)
• Small Business Development Centers (SBDC) 200 or
  more located all over the United States
• SCORE Service Corps of Retired Executives
• National Minority
• State incubators
• Liaison Agencies
• Airports

• http//bspage.com
• http//paloalto.com
• Bizmove.com
• http//www.sbaonline.sba.gov
• Marketing
• Business Plan
• Selling

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Program

• Purpose of the program
• Definition of small business/small disadvantaged
  business/minority program
• Scope
• Objectives and benefits
• Responsibility
• Execution strategies and tracking process
• Reporting
• Coordinator

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Building Successful MBE Relationships

• Corporate infrastructure
• Supplier diversity goals
• Champion
• Goals rolled into sourcing program
• Relationship building as a core strategy
• Commitment from senior management

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Building Successful MBE Relationships

• Purchasing done by purchasing
• Training
• Diversity awareness throughout the organization
• Contact person focused on the program

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Solutions

• Divide large contracts
• Set aside sections of a contract
• Bid system that factors in the impact on the
  community
• Suppliers to use minorities
• In-house training
• Mentoring
• Capital

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Supplier Diversity Operating Plan

• Vision and Goals
• Diversity vision
• Corporate objectives
• Spending goals

• Background
• Diversity history
• Strategic advantage
• Demographics
• Industry benchmarks
• World-class program
• Definitions

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Supplier Diversity Operating Plan

• Corporate Strategies
• Target areas
• Pre-sourcing
• Advisory committee
• Outreach program
• Measurement and reporting system

• Implementation
• Baseline
• Sourcing strategy
• Tracking methods
• Scorecards
• Second tier program
• Communications plan
• Quarterly and annual assessments

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Thank You for Joining Us

• NAPM Dallas
• Marilyn Gettinger, C.P.M.
• New Directions Consulting Group
• 908-709-0656
• mgettinger_at_aol.com