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MARCH 13, 2012 CMEDI CORPORATE SESSION

MARCH 13, 2012 CMEDI CORPORATE SESSION. Establishing goals Driving Supplier Diversity goals through the enterprise/organization Identifying opportunities Rewarding/incenting buyers. SAMPLE GOAL SETTING WORKSHEET. All numbers are fictional.

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MARCH 13, 2012 CMEDI CORPORATE SESSION

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  1. MARCH 13, 2012CMEDI CORPORATE SESSION • Establishing goals • Driving Supplier Diversity goals through the enterprise/organization • Identifying opportunities • Rewarding/incenting buyers

  2. SAMPLE GOAL SETTING WORKSHEET All numbers are fictional • Process started in August each year – Completed by October • Back-up information to supplier level provided with worksheet • SD Leadership Team responsible for working with internal stakeholders to set • SD Team held option to push back • Minimum 10% increase strongly encouraged • Final review and approval by CPO

  3. Driving goals

  4. Driving from the top down Executive Committee Supplier Diversity Commitment Corporate Policy XX– Supplier Diversity 4

  5. Training – designing supplier diversity into procurement process STAGE I DEFINE STAGE II GATHER/ANALYZE STAGE III STRATEGY CREATION STAGE V SUPPLIERMANAGEMENT STAGE IV STRATEGY IMPLEMENT Activities Strategy Implementation and Improve • Determine business needs • Condition stakeholders • Research market potential-diverse suppliers • Discuss diverse supplier opportunity with SMP team • Identify constraints and restrictions • Identify all potential suppliers -AQSCI • Examine selection criteria to avoid bias • Follow up with diverse suppliers to encourage participation • Clearly defined metrics and evaluation criteria • Require non diverse suppliers to be inclusive • Negotiate aggressively with diverse suppliers • Structured reviews • Leverage internal and external resources • Business partner participation and feedback on performance • Supplier feedback on process • Clearly defined inclusive sourcing options STAGE V SUPPLIERMANAGEMENT • Clear requirements • Marketplace Drivers • SMP team and stakeholders conditioned to include diversity • SD team engaged to identify qualified diverse suppliers • MWBE options identified • AQSCI evaluation criteria examined • SMP team aligned with diversity strategy • Apply LRIG sourcing evaluation • Evaluate 1st tier/ 2nd tier sourcing opportunities • Evaluate creative approaches i.e. supplier partnerships, carve-outs, JV’s, SA’s • Aligned metrics/Project Plan • Identified savings targets • Tier 1 or Tier 2 plans in place • Scheduled SMP team • and Supplier reviews • Joint score cards • Improvement plans • Contract monitoring Results Specification Management

  6. Pipeline example

  7. incentives

  8. Ensuring sustained results • Each procurement category responsible to establish sustainability/growth plan for diverse suppliers representing 90% of spend. (Most categories had no more than 8 suppliers to develop plans for.) • Mentoring • Training • Introduction to primes for SA/JV • Monitored by SD Team and SD Leadership Team • Reviewed by CPO and President

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