driving diversity in the supply chain -...

CANADIAN ABORIGINAL & MINORITY SUPPLIER COUNCIL

DRIVING DIVERSITY

IN THE SUPPLY CHAIN


0

2

4

6

8

10

12

14

16

1996 2001 2006 2016 2031

Aboriginal and

Minority

Po

pula:o

n Grow

th

(Millions)

CHANGING FACE OF CANADA

Sources: Statistics Canada 2001, 2006 Census, Projections of the diversity of the Canadian population 2006 to 2031

Who are your future suppliers? Minori'es are buying/star'ng businesses at 1.5 'mes the rate, and Aboriginal peoples at 9 'mes the rate, of other entrepreneurs.

Who is your future customer? Who are your client’s future customers? By 2016, 25% of Canada’s popula'on will be Aboriginal and minority, growing to approximately 35% by 2031.

31%

3.8% 4.1%

5.1 million

1.2 million

Projected

16.2%

20%

Aboriginal

Minority


WHAT IS SUPPLIER DIVERSITY?

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•  Corporate objec:ves of supplier diversity: •  Iden'fy cost savings, innova'on, global supply chain linkages

•  Build brand loyalty and create wealth with fastest growing group of consumers

•  Meet growing customer requirements for supplier diversity ('er 1)

•  Equal access to purchasing opportuni:es

•  Not a set-‐aside or quota program

•  Expecta:ons of suppliers (quality, delivery, price, etc.) consistent.


THE BUSINESS CASE

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Enhanced compe::veness in your supply chain •  Iden'fy poten'al cost savings, flexibility, responsiveness, and

innova'on Enable revenue genera:on •  Support government objec'ves of economic development of

aboriginal, women, minori'es – creates enhanced employment in these communi'es

Improved social license to operate: •  Strengthen stakeholder (community, employee, shareholder)

sa:sfac:on


RETURN ON INVESTMENT

GAIN FROM INVESTMENT – COST OF INVESTMENT

COST OF INVESTMENT

Tangible Gains: •  $ saved in compe''ve bid •  Incremental Corp./Gov’t Revenue *(SD Contribu'on e.g. 1%) •  Incremental Revenue from innova've product/service to market * (SD Contribu'on e.g. 5%) •  Revenue from fast growing diverse markets *(SD Contribu'on) •  Media and PR (e.g. cost of similar media ad placement)

Costs: •  Memberships, Training •  Events and Travel •  SD Salary •  Diverse supplier training

Intangible Gains: •  Supply Chain flexibility; supplier responsiveness (e.g. crisis); improved performance over incumbent; •  Differen'a'on from compe''on; build brand loyalty; enhance culture of diversity and innova'on; improved recruitment of diverse and non-‐diverse candidates

Over 'me, Supplier Diversity (SD) ROI can and is being calculated.


Awareness and policy ini:a:ves increasing

•  Federal Government -‐ Procurement Strategy for Aboriginal Business – set asides for aboriginal businesses

•  Nunavut, Manitoba, Ontario -‐ Aboriginal Procurement Policies

•  Atlan'c provinces include supplier diversity requirements in major projects (e.g. offshore oil)

•  Other jurisdic'ons ac'vely considering aboriginal/supplier diversity policy:

•  Saskatchewan

POLICY ENVIRONMENT

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Mission Facilitate procurement opportuni'es between major corpora'ons and suppliers owned and operated by Canadian Aboriginals and visible minori'es.

Organiza:on

Non-‐profit organiza'on, private-‐sector led

Affilia:ons Reciprocal agreement with the NMSDC

40+ years linking minority businesses to major corpora'ons. 460 na'onal members, represen'ng largest US corpora'ons In 2009, NMSDC members purchased more than $101 billion from minority businesses. chains.

ABOUT CAMSC

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LEADING COMPANIES LEVERAGE SUPPLIER DIVERSITY IN CANADA


CAMSC CORPORATE MEMBERS

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Hospitality Marriog Hotels Informa:on & Communica:on Technologies Alcatel-‐Lucent Cisco* DELL* HP * IBM Canada* Research in Mo'on* TELUS* Xerox* Pharmaceu:cal Pfizer Merck & Co.

Automo:ve and Industrial Acklands Grainger Boeing Chrysler* Flex-‐N-‐Gate General Motors Johnson Controls* Linamar Livingston Interna'onal Mar'nrea Toyota Motor Manufacturing Vari-‐Form Visteon Consumer and Business Products Cogon Candy Grand & Toy* Rideau Recogni'on Wal-‐Mart

Facili:es Management BLJC GDI Services Robinson Solu'ons Team Industrial Food & Beverage Campbell’s Soup CocaCola Enterprises Kellogg Krao PepsiCo

Financial and Business Services Accenture* BMO Financial Group CIBC Ernst & Young MasterCard Modis (formerly Ajilon) RBC Financial Group* TD Bank Financial Group UPS

* Charter Member


•  Cer:fica:on of Aboriginal and minority owned enterprises

•  Diversity Business Marketplace

•  Supplier Diversity baseline survey tool

•  Networking events and business opportunity fairs

•  Access to industry best prac:ces; peer to peer networking and learning

•  Toolkits include: Best Prac'ces in Supplier Diversity; Guidelines for a Second Tier Ini'a've

•  Advocacy, training and technical assistance workshops to strengthen supplier businesses and diversity programs

•  Media exposure to your success stories

OUR SERVICES TO MEMBERS

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THE DIVERSITY BUSINESS MARKETPLACE powered by

A mul:-‐faceted tool that allows you to: 1.   Search CAMSC’s na:onal database of cer:fied suppliers •  Based on company name, keyword, loca'on, commodity category, or NAICS

code

•  Lis'ng includes a detailed marke'ng profile, as well as ownership characteris'cs -‐ aboriginal/minority/women-‐owned

•  Diversity Business Directory: Self-‐iden'fied aboriginal and minority owned suppliers that can view business opportuni'es but will only be able to access bid response details once they register for cer'fica'on


2. SupplierFind: Invite suppliers to upcoming opportuni:es •  Reach out to CAMSC cer'fied suppliers to clarify addi'onal

qualifica'ons or requirements

•  Anonymously post upcoming opportuni'es to iden'fy and prequalify a prospec've pool of aboriginal or minority-‐owned suppliers

•  Post from a few sentences to a full RFP

•  CAMSC collects and sends you profile responses. You may also choose to have them respond directly to you.

THE DIVERSITY BUSINESS MARKETPLACE powered by


Determine your current level of diversity in your exis:ng supply chain:

•  Iden'fy Aboriginal, minority or women-‐owned suppliers, in order to

•  Assist in mee'ng your current repor'ng requirements, as well as

•  Help you develop realis'c supplier diversity program goals

•  The Baseline Survey Tool offers you:

•  Sample policy statements to comply with Special Program guidelines of the provincial Human Rights Commission

•  A tested survey tool that ensures protec'on of your suppliers confiden'al data

•  Opportunity to verify and improve the quality of your supplier informa'on

BASELINE SURVEY TOOL

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Over the past 6 years:

•  65 major corpora:ons as members

•  Developed the Diversity Business Marketplace, a na'onal on-‐line database of aboriginal and minority suppliers and SupplierFind outreach tool

•  More than $239 million in contracts and millions more in “:er two” opportuni:es

•  Successful Diversity Procurement Fairs and Business Achievement Awards that have led to contract awards

•  CAMSC success stories on our website: www.camsc.ca

CAMSC ACHIEVEMENTS

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SUPPLIER CERTIFICATION

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Must Be at least 51 % Aboriginal or Minority-‐owned and operated

Must be a for-‐profit business, located in Canada Operate in Canada Be able to operate as a supplier of products or services to other businesses The owner(s) must be a Canadian ci:zen(s) or US ci:zen(s) Aboriginal: Defined as First Na'ons, Me's or Inuit (Sta's'cs Canada)

Visible Minority: Defined as persons non-‐white in colour and non caucasian in race. Visible minority classifica'ons include: Chinese, South Asian, Black, West Asian, Filipino, South East Asian, La'n American, Japanese, Korean


CERTIFICATION BENEFITS

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•  Market access tool

•  In the past six years, CAMSC corporate members have spent more than $240 million with CAMSC cer:fied suppliers, and millions more through Tier 1 suppliers

•  Corporate members request cer'fica'on to know their investments in supplier inclusion are reaching the intended businesses, and therefore have a greater likelihood of achieving their business objec'ves.


THE DIVERSITY BUSINESS MARKETPLACE A mul:-‐faceted tool: •  Complete CAMSC cer'fica'on online •  Online lis'ng of CAMSC corporate business

opportuni'es •  Search for other aboriginal and minority suppliers

for business and alliance opportuni'es •  Daily email alert of public sector bids and CAMSC

business opportuni'es


BUILDING A SUPPLIER DIVERSITY PROGRAM

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Establish Executive Support •  Develop / communicate the internal business case

•  Develop Corporate Policy (Shell, Cisco,

Pfizer)

Analyze your Purchasing Spend to

Identify Opportunities

•  Upcoming RFPs (12-24 months) •  Local suppliers/logistical benefits •  Risk threshold (indirect/direct )


BUILDING A SUPPLIER DIVERSITY PROGRAM CONT’D

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Develop your Inclusion Methodology

•  Review certified supplier list (or request referrals) during development of each sourcing event

•  Inform suppliers about your supplier diversity program on your website

•  Ask ownership questions during sourcing events


HOW CAN WE ASK OWNERSHIP QUESTIONS?

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All provinces, including Newfoundland, have sec'ons of the Human Rights Code that allows companies to implement Special Programs:

“that might otherwise be considered discriminatory, if the programs are designed to: (i) relieve hardship or economic disadvantage, or (ii) assist disadvantaged persons or groups to achieve equal opportunity”


SPECIAL PROGRAM IN PRACTICE

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visible minority-‐owned and women-‐owned suppliers.”

Ask op4onal ownership ques:ons during sourcing events -‐ Encourages suppliers to self-‐iden'fy and begins valuable discussions with Tier 1 (prime) suppliers


BUILDING A SUPPLIER DIVERSITY PROGRAM CONT’D

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strategies to include diverse suppliers; inform, train and mentor as possible

Develop a Second Tier Program Supplier Development Opportuni:es

•  Look at exis'ng supplier development and partnership strategies to include diverse suppliers; inform, train and mentor as possible

Develop a Second Tier Program


CERTIFICATION BENEFITS

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•  Market access tool

•  In the past six years, CAMSC corporate members have spent more than $240 million with CAMSC cer:fied suppliers, and millions more through Tier 1 suppliers

•  Corporate members request cer'fica'on to know their investments in supplier inclusion are reaching the intended businesses, and therefore have a greater likelihood of achieving their business objec'ves.


KEY NETWORKING EVENTS

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Diversity Procurement Fair – April 10-‐11, 2012

Annual tradeshow which includes buyer-‐supplier matchmaker, as well as corporate workshops on building supplier diversity programs;

Business Achievement Awards – September 27, 2012 Major awareness event agrac'ng government and senior corporate agendance, as well as Aboriginal and minority business and poli'cal leaders


April 10th & 11th Featuring: > 50 Corporate/Government Buying Organizations

Strategic Sourcing Roundtables

One to One Matchmaker Appointments

Best Practices Workshops


CONTACT CAMSC

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For more informa'on, please contact:

Membership: Ka4e Mo7a Director, Business Development & Partnerships [email protected] CAMSC 95 Berkeley St. Second Floor Toronto, ON M5A 2W8 T: 416-‐941-‐0004 F: 416-‐941-‐9282 W: www.camsc.ca

Events: Danielle Tomarelli Manager, Events, Marke'ng and Memberships [email protected] CAMSC 95 Berkeley St. Second Floor Toronto, ON M5A 2W8 T: 416-‐941-‐0004 F: 416-‐941-‐9282 W: www.camsc.ca

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