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NAPM – DallasMaking Minority SuppliersPart of Your Supply Management Strategy

ThursdayFebruary 8, 2007Dinner Presentation

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Marilyn Gettinger, C.P.M.

PresidentNew Directions Consulting Group908-709-0656mgettinger@aol.com

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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

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Definitions

www.sbaonline.sba.gov Title 13 of the Code of Federal

Regulations (CFR), Part 121

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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

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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

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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

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Statistics

Over 3.2 million minority businesses

Over 9.1 million women-owned businesses

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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

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Texas Statistics

Hispanic 2002

Black-Owned 2002

Women-Owned 2002

319,339 firms33% increase from 240,396 in 1997$42.19 billion1in 5 located in Texas 2nd nationallyNumber, sales and receipts Dallas-Fort Worth5th in state

88,769 firms47% increase From 60,427 in 1997$6.69 billion5th in the nationfor number3rd for sales and receipts

469,049 firms 23% increase from 381,453 in 1997$66.7 billion3rd in the nationfor number, receipts and sales

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Texas Statistics

Asian-Owned 2002

Native-American Owned 2002

78,018 firms 32% increase from 59, 318 in 1997$22.62 billion3rd in the nation for number and 3rd for sales and receipts

16,863 firms 8% increase from 15,668 in 1997$3.32 billion3rd in the nation for number2nd in the nation for sales and receipts

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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

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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

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Supply’sChallenges

Qualified MBE’s,WBE’s, SBE’s, DBE’s

Time commitment Mentoring and coaching Capacity Contingency planning

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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

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Certification Preparation

Private companies Small Business Development

Centers

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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)

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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

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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

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Information in Texas

TEXAS  Central & South Texas Minority Business Council Austin:(512) 386-8766

Dallas/Fort Worth Minority Business Council  Dallas:(214) 630-0747  

Houston Minority Business Council  Houston:(713) 271-7805 

 

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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

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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.

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National Minority Supplier Development Council, Inc.

39 minority Purchasing Councils www.nmsdcus.org 30% ownership Referral of corporate

purchasers to minority supplies Education

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Chambers of Commerce

Local minority chambers of commerce

Encyclopedia of Associations - Gale

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Support Systems forMBE/WBE/SBE

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

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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

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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

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Building Successful MBE Relationships

Purchasing done by purchasing Training Diversity awareness throughout

the organization Contact person focused on the

program

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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

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Supplier Diversity Operating Plan

Vision and Goals Diversity vision Corporate

objectives Spending goals

Background Diversity history Strategic

advantage Demographics Industry

benchmarks World-class

program Definitions

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Supplier Diversity Operating Plan

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

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Thank You for Joining Us

NAPM – Dallas Marilyn Gettinger, C.P.M. New Directions Consulting

Group 908-709-0656 mgettinger@aol.com