Fundamentals of a New Minority Supplier Development Process

Opportunities AssessmentEducation & Training

Kenyatta LewisExecutive Director, Supplier Diversity

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

RGMA 5 Levels of a Supplier Development Process

~Creating opportunities for all Now that’s Inspiring~

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

Structure

GLOBAL PROCUREMENT

Supplier Diversity

Corporate Purchasing

Materials Management

Strategic Sourcing

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.

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.

Identify MBE Opportunities

Sourcing Process Integration

Supplier Diversity team engagement

Internal Training

External Education

Supplier Development & Supplier Diversity

Communication

Darren HarmonDirector, Supplier Diversity & Business Development

General Mills

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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*

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GMI Nourishes Lives through the SD Platform

Employment

Philanthropy

Revenue Growth

Supplier Diversity

Spend

Annually, GMI solicits feedback from our top 100 diverse suppliers in the following areas:

GMI Supplier Diversity Moving Towards a World Class Process

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2013 Recognition

• MMSDC Corporation of the Year

• “Best of the Best” Supplier Diversity Programs

• Professional Woman’s• Hispanic Network

Our communication tools are used to drive awareness, engagement and execution of supplier diversity initiatives

Effective Communication is Critical to Our Success

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

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Monthly Reporting

SD Websites (internal & external)

Intranet “Champions” Stories

Employee Orientations

Annual Corporate Social Responsibility (CSR) report

Field & Functional Champions

Websites are Efficient Communication Vehicles

External Website

• Key Characteristics:- Easy to find on website (3 clicks)- Relevant Information

- Statement on commitment- Registration Portal- Technology Idea Submissions- Videos highlighting SD in

action

Communication Vehicles

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Suppliers Play A Vital Role In The Value Equation

E2

Partnerships

Strategic

Transactional Interactions

Value

Innovation, New Capabilities, Integrated

Value Chain

Optimize Total Delivered Cost, Shared

Objectives

Foundational, Consistency

Collaboration, End to End Optimization

Training & Performance Management Tools are Key to Supplier Development

Scorecards

Periodic

Reviews

Continuous

Improvement

Supplier Summit

Mentoring

Performance Mgmt.

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Training

Measurement & TrackingProcess Improvement

Lynn A. BoccioVP, Strategic Business & Diversity Relations

Overview Founded in 1946 30,000 employees 175 Countries

Avis Budget Group (ABG)

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

Avis Budget Group RecognitionCurrent State:

RGMA Level 4 to 5 – Advanced to World Class Process

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

Measurement & Tracking

“What gets measured gets done.”

Consider Report Formats & Distribution at 3 Levels:

Measurement & Tracking

Senior Management

Supply Chain/Strategic Sourcing

Cross Functional

Dashboard

Spend by Category

Spend by Company and/or Cost Center

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2

3

Measurement & Tracking

Sample Report

Leverage Drill Down by Category, by Supplier

(Supplier Diversity/ Strategic Sourcing)

Diversity Supplier Registration & Maintenance Portal

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Program Health / Process Improvement

Position SD to Support corporate strategy

Compliment Strategic Sourcing Strategies

Cultivate Primary Internal Drivers

Document Supplier Added Value

Focus on Supplier Development

• Corporate Strategy

• Organizational Structures

• Geographic Footprint

• Global Supply Chains

Ongoing Change

Once you get past the basics, remember:

Thank you

Questions?