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NAPM – Dallas Making Minority Suppliers Part of Your Supply Management Strategy

NAPM – Dallas Making Minority Suppliers Part of Your Supply Management Strategy. Thursday February 8, 2007 Dinner Presentation. Marilyn Gettinger, C.P.M. President New Directions Consulting Group 908-709-0656 mgettinger@aol.com. Definitions.

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NAPM – Dallas Making Minority Suppliers Part of Your Supply Management Strategy

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  1. NAPM – DallasMaking Minority SuppliersPart of Your Supply Management Strategy Thursday February 8, 2007 Dinner Presentation

  2. Marilyn Gettinger, C.P.M. President New Directions Consulting Group 908-709-0656 mgettinger@aol.com

  3. Definitions • Small and historically underutilized businesses (HUB) • Minority Supplier • Hispanic, Asian-Pacific, Asian–Indian, 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

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

  5. 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

  6. 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

  7. 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

  8. Statistics Over 3.2 million minority businesses Over 9.1 million women-owned businesses

  9. 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

  10. Texas Statistics

  11. Texas Statistics

  12. 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

  13. Supplier Challenges • Communication • RFP’s/RFQ’s • 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

  14. Supply’sChallenges • Qualified MBE’s,WBE’s, SBE’s, DBE’s • Time commitment • Mentoring and coaching • Capacity • Contingency planning

  15. 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

  16. Certification Preparation • Private companies • Small Business Development Centers

  17. 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)

  18. 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

  19. 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

  20. 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 

  21. Information Resources • Central Texas Minority Business Directory • http://openpr.com/news/1149Central-Texas.Minority-Business-Directory • kenmon@minoritydirectory.com • 2007 DIR National Minority and Women-Owned Business Directory – 38th edition • $129 • www.diversityinforesources.com/minoritybus.shtm

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

  23. National Minority Supplier Development Council, Inc. • 39 minority Purchasing Councils • www.nmsdcus.org • 30% ownership • Referral of corporate purchasers to minority supplies • Education

  24. Chambers of Commerce • Local minority chambers of commerce • Encyclopedia of Associations - Gale

  25. 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 Support Systems forMBE/WBE/SBE

  26. 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

  27. 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

  28. Building Successful MBE Relationships • Purchasing done by purchasing • Training • Diversity awareness throughout the organization • Contact person focused on the program

  29. 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

  30. Vision and Goals Diversity vision Corporate objectives Spending goals Background Diversity history Strategic advantage Demographics Industry benchmarks World-class program Definitions Supplier Diversity Operating Plan

  31. 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 Supplier Diversity Operating Plan

  32. Thank You for Joining Us • NAPM – Dallas • Marilyn Gettinger, C.P.M. • New Directions Consulting Group • 908-709-0656 • mgettinger@aol.com

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