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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

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

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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. - PowerPoint PPT Presentation

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  • Presbyterian Church (U.S.A.)Climate for Change Task ForceEstablishing a Supplier Diversity Program

    ByWilliam H. DrewesAttorney Supplier Diversity Counsel

    September 8-10, 2010Philadelphia, PA

  • *Roots of Supplier DiversityPresident Roosevelt M. Nixon established the U.S. Office of Minority Business Enterprise (OMBE) on March 5, 1969 with Executive Order 11458Agency renamed in 1979 as the Minority Business Development Agency (MBDA) in the U.S. Department of CommerceTechnical assistance, federal government procurement opportunities for minority-owned businesses not women-owned businesses

  • *Who are Diverse Suppliers?Small businesses which are majority owned by women, minorities, veterans, disabled or socially or economically disadvantaged individualsSmall businesses which are located in distressed areas designated as HUB Zones (Historically Underutilized Business Zones)

  • *Certifiable Minority GroupsAll must be U.S. CitizensAfrican-American/BlackHispanic/LatinoNative American (American Indian, Eskimo, Native Hawaiian)Asian PacificAsian IndianWomen

  • *Criteria for Minority- or Women-Owned Business Enterprise (M/WBE) CertificationA for-profit enterprise (no non-profit organizations)At least 51% ownership by minority or women individualsActive operational management of the company by the minorities or womenControl of the business by the minorities or womenThe minorities or women are U.S. citizensThe company is U.S. incorporated and based in the U.S.

  • *Certifying AgenciesU.S. Small Business Administration (SBA)www.sba.gov

    National Minority Supplier Development Council (NMSDC) or its regional affiliateswww.nmsdc.org

    Womens Business Enterprise National Council (WBENC) or its regional affiliateswww.wbenc.org

    State and local government agencies

  • *Regional DiverseSupplier Development CouncilsThe Tri-State Minority Supplier Development Council614 West Main Street, Suite 5500Louisville, KY 40202(502) 625-0159www.tsmsdc.com

    Ohio River Valley Womens Business Council3458 Reading RoadCincinnati, OH 45229(513) 487-6515www.orvwbc.org

  • *Its a Process!Its Business Its LegalIdentifyQualifyNegotiateContractEvaluate

  • *Establishing aSupplier Diversity ProgramHave a written planBuy-in from top leadershipA visionMission statementMessage from top leadershipEstablish supplier diversity procurement policy and standardsAppoint someone to implement the planUse available resources (Dont re-invent the wheel!)Analyze current spend, establish goalsDo outreach: vendor open house, RFPs, RFIs

  • *Establishing a Supplier Diversity Procurement StandardA 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 FormNote: No guarantee that they will get business BUT they must register

    Basic information required:Legal name of businessContact informationProduct/Services providedProduct/Services CodesDUNS numberTax ID numberDate business startedSales information (last 3 years)CertificationReferencesSigned by principal of the company

  • *The CodesSIC Standard Industrial ClassificationNAICS North American Industrial Classification SystemUNSPSC United Nations Standard Products and Services Code

  • *Technical Assistance for M/WBEsDont 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) 634-0245www.score.org

    Small Business Development Centers (SBDC)800 centers, (703) 271-8700www.sba.gov

    Minority Business Development Agency (MBDA)(202) 482-4547www.doc.gov

  • *Second TierSupplier Diversity ProgramsEncourage prime contractors to establish goals to include M/WBEs in the their procurement contract with your organizationReport and track subcontract spend

  • An Emerging Business Modelfor Diversity in the Private Sector*Supplier DiversityWorkforceDiversity & InclusionGreen Initiative &SustainabilityCorporate PhilanthropyCorporate Social Responsibility(CSR)