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Establishing a Supplier Diversity Program
Jamie Green, MBA, CMRP
Strategic Sourcing Manager
Supply Chain Management
NYU Langone Medical Center
New York, NY
NYU Langone Medical Center is a world-class, patient-centered, integrated, academic medical center and is one of the nation's premier centers for excellence in clinical care, biomedical research and medical education. NYULMC is located in the heart of Manhattan, is composed of four hospitals – Tisch Hospital, its flagship acute care facility; Rusk Rehabilitation; the Hospital for Joint Diseases, one of only five hospitals in the nation dedicated to orthopaedics and rheumatology; and Hassenfeld Children’s Hospital, a comprehensive pediatric hospital supporting a full array of children's health services across the medical center – plus the NYU School of Medicine, which since 1841 has trained thousands of physicians and scientists who have helped to shape the course of medical history.
• Four Hospitals: Tisch, Rusk, HJD and Hassenfeld• 1,065 Beds and 65 O.R.’s• $1.7 Billion of Spend (Clinical, Indirect and Research)• No. 1 in Total Licensing Revenue Received (US Universities)• 1,100 FGP’s; 2,135 AP’s and 2,325 RN/ANP’s• Faculty: 4,905 (inclusive of FT, PT, Voluntary and Endowed Profs)• Grant Funding: $260.4M (inclusive of Fed/Non-Fed (ARRA), CR)
Organization Background
Establishing a Supplier Diversity Program
Criteria for success• Executive Leadership• New Program Foundation• Establishing Goals• U.S. Federal Government Contracts• Supplier Certification• Diversity Resources• Mentoring• Supplier Diversity Measurements
Organizational Structure
Establishing a Supplier Diversity Program
• Actively promote program– Intranet, newspaper, etc.
• Monitor and measure results– Report progress to senior management regularly
throughout the year
• Consequences / Rewards– Recognition awards, annual review penalties
• Create a diversified team
Executive Leadership
Establishing a Supplier Diversity Program
New Program Foundation
• Mission Statement – Supplier Diversity Plan• Develop Coding System for Identifying• Supplier Ownership/Certification• Survey Existing Supplier Base – Categorize• Communication Plan• Develop Reporting (eSRS site – www.esrs.gov)• Network with corporations that have successful
Supplier Diversity Programs – good source is local women and minority councils
Establishing a Supplier Diversity Program
• State “Good Faith” Effort Goals• Institutional Strategic Goals by Fiscal Year
– Direct spend only• Federal Goals for Subcontract Plans
– Specific agency requirements– FAR 52.219-9
• Federal Goals for Subcontract Plans
Establishing Goals
Establishing a Supplier Diversity Program
Establishing Goals (cont’d)
Statutory Goals Established by Federal Executive Agencies
The federal government has the following statutory goals for small business procurement:
• 23% of prime contracts for small businesses;
• 5% of prime and subcontracts for women-owned small businesses;
• 5% of prime and subcontracts for small disadvantaged businesses;
• 3% of prime and subcontracts for service-disabled veteran-owned small businesses;
• 3% of prime subcontracts for HUBZone small businesses.
• Government-Wide Goals/Performance: http
://www.sba.gov/sites/default/files/files/FY12_Final_Scorecard_Government-Wide_201
3-06-20.pdf
Establishing a Supplier Diversity Program
U.S. Federal Government Contracts
• Federal Small Business Concern Program– Small, small disadvantaged, woman-owned, HUB
Zone, veteran, service-disabled veteran, Historically Black Colleges and Universities and Minority Institutions
• Categories determined by Congress• Reviewed by Small Business Administration for
compliance• Strict monitoring and documentation requirements
• Individual Subcontract Reports (ISR) & Summary Subcontract Reports (SSR)
Establishing a Supplier Diversity Program
Supplier Certification
• Certification through SBA:– Small Disadvantaged Business– HUBZone
• Self-Certifications:– Small– Woman-Owned– American Veteran Owned– American Vet, Service Disabled– Historically Black Colleges and Universities and Minority Institutions
• DBEs are being certified outside of the U.S. by WE Connect International and the NMSDC-allied organizations of Global Link
Establishing a Supplier Diversity Program
Diversity Resources
• Central Contractor Registration database (CCR)• Small Business Administration (SBA)• National Minority Supplier Development Council
(NMSDC)• Women’s Business Enterprise National Council
(WBENC)• National Veteran-Owned Business Association
(NaVOBa)• State Office of Minority Business Administration
Establishing a Supplier Diversity Program
Mentoring
• Connect with a partner– Work with a company that makes sense
• Develop strategy around opportunities– Data mine and identify highest opportunity
categories• Assist where possible
– Financial support, internal market share expansion, etc.
Establishing a Supplier Diversity Program
Establishing a Supplier Diversity Program
Beginning Supplier Diversity Program
Basic Supplier Diversity Program
Traditional Supplier Diversity Program
Advanced Supplier Diversity Process
World Class Supplier Diversity Progress
Community Affaires or H.R. owns the process
Part-time Supplier Diversity Manager
Active full time Supplier Diversity Manager
Supplier Diversity at Director level
Supplier Diversity Director is a key resource for senior management
Sparse trackingSenior management still isn't engaged in the process
Little to no senior management involvement
CEO/Senior management involvement Senior management leadership
Nonexistent outreachTracking is focused on customer reporting
Limited connection with strategic sourcing
Process aligned with strategic sourcing
Supplier diversity is owned by strategic sourcing
Minorities are prominent in advertising, but minority owned advertising agencies aren't used
Trade fair participation is a photo opportunity for key customers
No significant link to marketing and brand strategy
Strong team of supplier diversity professionals
Accountability throughout the organization including senior management
No Supplier Diversity marketing materials
Compliance-driven response to customer requirements
Reporting is hampered by inadequate technology Buyer/key executive training
Supplier Diversity tools are utilized throughout the organization
Senior mgmt doesn't understand the value proposition
Perception exists that the program is an expense, not an asset
Most diverse vendors are supplying non-essential commodities or services
Supplier Diversity has specialized technology
Innovative tools such as alliances and acquisitions drive program growth
No S. D. budgetFew professional services opportunities are available
Steering Committee is comprised of senior executives Integrated into global strategy
Don't attend M/WBE trade fairsLoosely structured 2nd tier program Advanced 2nd tier program
2nd tier program is integrated into sourcing strategy
Member or local/national advocacy organizations
Innovative diverse supplier development initiatives
Ability to measure the program's contribution to market share and shareholder's equity
Diverse suppliers included in professional services and outsourcing opportunities
The Supplier Diversity Director is a key contributor to the corporation's overall management strategy
Active in local/national advocacy organizations
E-sourcing is used as a tool to expand diverse spending
Supplier diversity is aligned with marketing and sales
Supplier Diversity process is equal in stature to workforce diversity
The Supplier Divesity Director is a key contributor to the corporation's overall management strategy
Program has sufficient resources
