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

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.

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

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  1. 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

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

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

  4. Certifiable Minority Groups • All must be U.S. Citizens • African-American/Black • Hispanic/Latino • Native American (American Indian, Eskimo, Native Hawaiian) • Asian Pacific • Asian Indian • Women

  5. Criteria for Minority- or Women-Owned Business Enterprise (M/WBE) Certification • A for-profit enterprise (no non-profit organizations) • At least 51% ownership by minority or women individuals • Active operational management of the company by the minorities or women • Control of the business by the minorities or women • The minorities or women are U.S. citizens • The company is U.S. incorporated and based in the U.S.

  6. Certifying Agencies • U.S. Small Business Administration (SBA) www.sba.gov • National Minority Supplier Development Council (NMSDC) or its regional affiliates www.nmsdc.org • Women’s Business Enterprise National Council (WBENC) or its regional affiliates www.wbenc.org • State and local government agencies

  7. Regional DiverseSupplier Development Councils • The Tri-State Minority Supplier Development Council 614 West Main Street, Suite 5500 Louisville, KY 40202 (502) 625-0159 www.tsmsdc.com • Ohio River Valley Women’s Business Council 3458 Reading Road Cincinnati, OH 45229 (513) 487-6515 www.orvwbc.org

  8. It’s a Process! It’s Business – It’s Legal • Identify • Qualify • Negotiate • Contract • Evaluate

  9. Establishing aSupplier Diversity Program • Have a written plan • Buy-in from top leadership • A vision • Mission statement • Message from top leadership • Establish supplier diversity procurement policy and standards • Appoint someone to implement the plan • Use available resources (Don’t re-invent the wheel!) • Analyze current spend, establish goals • Do outreach: vendor open house, RFPs, RFIs

  10. Establishing a Supplier Diversity Procurement Standard • A 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

  11. Diversity Supplier Registration Form Note: No guarantee that they will get business BUT they must register

  12. The Codes • SIC – Standard Industrial Classification • NAICS – North American Industrial Classification System • UNSPSC – United Nations Standard Products and Services Code

  13. Technical Assistance for M/WBEs • Don’t 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) 634-0245 www.score.org • Small Business Development Centers (SBDC) 800 centers, (703) 271-8700 www.sba.gov • Minority Business Development Agency (MBDA) (202) 482-4547 www.doc.gov

  14. Second TierSupplier Diversity Programs • “Encourage” prime contractors to establish “goals” to include M/WBEs in the their procurement contract with your organization • Report and track subcontract spend

  15. An Emerging Business Modelfor Diversity in the Private Sector Corporate Social Responsibility (CSR) Workforce Diversity & Inclusion Supplier Diversity Green Initiative & Sustainability Corporate Philanthropy

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