DIVERSITY IN THE SUPPLY CHAIN

CANADIAN ABORIGINAL & MINORITY SUPPLIER COUNCIL

DIVERSITY

IN THE

SUPPLY CHAIN


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1996 2001 2006 2016 2031

Ab

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gin

al a

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Min

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Po

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wth

(M

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ns)

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? Minorities are buying/starting businesses at 1.5 times the rate, and Aboriginal peoples at 9 times the rate, of other entrepreneurs.

Who is your future customer? Who are your client’s future customers? By 2016, 25% of Canada’s population 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


DEMOGRAPHIC H IGHLIGHTS ACROSS CANADA

Vancouver Saskatchewan

Manitoba

Toronto

Aboriginal

Minority

Caucasian

Nunavut

British

Columbia

Source: Statistics Canada 2006 Census

Alberta

Atlantic

Canada

Province Aboriginal

Population

ON 242,495

BC 196,075

AB 188,365

MN 175,395

SK 141,890


WHAT IS SUPPLIER DIVERSITY?

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• An initiative by companies to ensure they are being inclusive in their supply chain practices to suppliers of diverse backgrounds, while at the same time capitalizing on the opportunity for competitive advantage from newer and potentially more innovative companies

• Objectives: equal access to purchasing opportunities; supply chain renewal

• Not a set-aside or quota program

• Expectations of suppliers (quality, delivery, price, etc.) consistent for diverse and non-diverse suppliers; however, corporations may invest in mentorship, favourable payment terms, training, in support of diverse suppliers.


LEADING COMPANIES LEVERAGE SUPPLIER DIVERSITY IN CANADA

https://app.suppliergateway.com/chrysler/

http://www.cibc.com/

http://www.campbellsoup.com/


Awareness and policy initiatives increasing

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

• Nunavut, Manitoba - Aboriginal Procurement Policies

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

• Other jurisdictions actively considering aboriginal/supplier diversity policy:

• Ontario (CSR); Saskatchewan

POLICY ENVIRONMENT

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BUSINESS CASE FOR SUPPLIER DIVERSITY

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Enhance Corporate

Competitiveness

Improve flexibility,

responsiveness

Identify Cost Savings

Access Emerging

Innovation

Build Brand Loyalty in Fast

Growing Markets

Meet Client / Government

Diversity Objectives

Develop Local and Global

Market Linkages

Create Wealth, Employment

Strengthen your Supply Chain

Generate Revenue

Improve Social License


IDENTIFY COST SAVINGS

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Grand & Toy met Mavron at the CAMSC Diversity Procurement Fair. A fruitful meeting marketplace appointment led to an invitation from Grand & Toy to participate in their upcoming FTL & LTL bid opportunities after a pre-qualification process.

“Prior to the CAMSC Procurement Fair, we were unaware of Mavron’s existence or

capabilities. We make our decisions not based on whether a firm is a diverse supplier or

not, but whether they can bring added value at a competitive cost to the business.

Mavron’s inclusion in the on-line auction resulted in significant bottom-line savings

which well-outpaced the competition. Not only have we exceeded our savings objectives,

we are receiving excellent service.

Patricia Moser, VP Supply Chain, Grand & Toy


ACCESS INNOVATION

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Recognizing the increasing imperative for energy efficiency, both for client cost savings as well as the reduction in greenhouse gas emissions, QBD invested in research and development to significantly improve the energy efficiency of their coolers. As a result of these and other design innovations, QBD has saved its client well over $1 million in energy costs in 12 months alone, and QBD’s business with PepsiCo has grown substantially over the past few years.

“QBD has been an innovative, agile supplier to PepsiCo providing outstanding quality,

service and economic value. They understand the needs of Pepsi’s business and the

needs of their customers and they respond.”

Judy Priolo, Senior Director, Global Marketing Equipment, Pepsico


IMPROVE RESPONSIVENESS

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3M Canada was less than satisfied with the services response time of its global IT hardware and support services provider. 3M negotiated with this provider, also a CAMSC corporate member, to enable 3M to work with an approved reseller to secure improved service response times.

“Like any business, we choose suppliers on the basis of price and performance,” says

Anne Koehler, 3M Senior IT Buyer. “Our experience with Telecom Computer has been

extremely positive and productive, from on-time delivery and responsiveness, to

warranty service. These are business critical applications, so failure and delay aren’t

options.”


RETURN ON INVESTMENT

GAIN FROM INVESTMENT – COST OF INVESTMENT

COST OF INVESTMENT

Tangible Gains: • $ saved in competitive bid • Incremental Corp./Gov’t Revenue *(SD Contribution e.g. 1%) • Incremental Revenue from innovative product/service to market * (SD Contribution e.g. 5%) • Revenue from fast growing diverse markets *(SD Contribution) • 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; • Differentiation from competition; build brand loyalty; enhance culture of diversity and innovation; improved recruitment of diverse and non-diverse candidates

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


CONTACT CAMSC

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For more information, please contact:

Membership: Katie Motta 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, Marketing 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

http://www.camsc.ca/

http://www.camsc.ca/

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DIVERSITY IN THE SUPPLY CHAIN