supplier diversity initiative final
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Office for Diversity and Inclusion
Supplier Diversity Initiative:Leveraging Diverse SuppliersFor Increased Value
Hubert Kwame Anane-SarfoDecember 5, 2016
Agenda
1. Supply Chain Value in Healthcare
2. Supplier Diversity Defined
3. Strong Diverse Supplier
4. Business Case
5. Program Elements: Mission, Current State, Goals
6. Recommendations
7. Website
Supply Chain Value Trends in Healthcare
▶ Reduction of Total Vendor Base/Consolidation of vendors (one organization approach or via a consortium of organizations approach)
▶ Offer larger contracts to remaining vendors in exchange for improved pricing levels and quality/service levels
3
Supplier Diversity…
▶ Is a business strategy that ensures a diverse supplier base in the procurement of goods and services for a business or organization.
▶ Diverse suppliers are Minority and Women Owned Enterprise (MWBE), LGBT, HUBZone
– 51% owned, managed and operated
▶ Statistics show that companies who embrace diversity are more profitable than companies who do not mainly because:
– Increases competition – Drives innovation
4
Strong Diverse Suppliers
▶ Leading supplier diversity efforts have tapped into strong diverse suppliers, who effectively participate and offer value to the supply chain efforts
▶ Strong Diverse Supplier:– 7-8 figures in Revenues/Organizational Sales– Strong past performance – Competitive, superior quality service and pricing– Offer unique innovation in products and services
5
Business Case for Supplier Diversity ▶ Improving Health & Building Wealth
▶ We as a superior health system have a chance to tackle social determinants occurring in our communities
– Two main socioeconomic issues within communities are: income and health
– Supplier Diversity is one significant tool in facing these issues• Buying from small businesses helps them create more profit• Helps businesses grow, increase wages and hire more people• Strengthens relationship among health system, suppliers, and external
stakeholders
6
Biz Case for Supplier Diversity cont’d
7
MS procuremen
t dollars spent with
Diverse suppliers
Diverse suppliers
ramp up to meet
demand by hiring and increasing inventory
Increase in jobs to meet
demand, increase
spending by businesses
This stimulus
contributes to
community developmen
t and improved
family living
A reduction in negative
social determinant
s and improvement in health outcomes
Sinai builds new outpatient unit contracting MWBE
Business has more income for sustainability
MWBE hires more workers to ensure deadline
More jobs created, wages paid and families have disposable income
Mission Statement
▶ Mount Sinai Health System supplier diversity program is committed to maintaining a competitive, diverse supplier base reflective of the communities we serve. We facilitate this by supporting the utilization of qualified diverse businesses (women, minority, LGBT, disabled, veterans, HUB Zone, etc.)
▶ Objectives:
– In support of our mission, we will use a comprehensive approach to supplier diversity to create community wealth and generate work opportunities.
– We also will partner with diversity advocate organizations to provide support services to diverse vendors on: becoming certified, the procurement process, educational seminars, and networking events.
8
Current State
Percentage of Diversity Spend 2014 20152.85% 2.97%
9
Diversity Spend (Certified) 2014 2015
$19 million $45.5 million
10
Goals
10
Billion Dollar Roundtable• Organization created to recognize & celebrate
corporations that achieved spend of at least $1 billion dollars with MWBE’s
How can we join?• Increase diversity spend across 7 hospital sites• Set spend goals for hospitals & affiliates
FAST FACTS:
20 members12,586 suppliers 8 industry sectors $75 billion in diverse spend
11
Goals cont’d
11
Increase Tier 1& 2 spend
- “Companies under $1 million in annual revenue tend to hire people that look like them, have between 5-10 employees and are from the same physical community. Increasing their business… not only result in job creation, but further promotes goodwill among their employees.”
- Introduce more strong diverse suppliers into procurement process
- Increase small business engagement
- Source: http://jobenomicsblog.com/minority-owned-businesses/#sthash.pg9sNmnA.dpuf
Recommendations
▶ Update Mount Sinai Health System Purchasing Policy– Include a small section about Supplier Diversity in the Objectives and
standards section (page3)• To support a competitive bidding process, we include minority and diverse
suppliers within our purchasing process
– Under Competitive Selection Process (page7) alter current statement.• Include at least one diverse supplier in purchases between $15,000-$25,000
and above $25,000
▶ Utilize minority supplier advocate councils – Provide a copy of all proposals to diversity councils for distribution to
MBEs which would be good matches
12
Recommendations cont’d
13
We actively engage diverse suppliers into our purchasing process to continue to ensure competitiveness.
Recommendations cont’d
Include at least one diverse supplier in purchases
Questions/Comments
17
References
17
Jamahal C. Boyd, SrDirector Diversity, Inclusion and Language ServicesTri- Health
Beverly Norman-CooperExecutive Director, National Supplier DiversityKaiser Permanente
Joseph B. HillSenior Vice President & Chief Diversity OfficerThomas Jefferson University and Jefferson Health
Mark MillsExecutive Director, Purchasing Services University of Pennsylvania
http://jobenomicsblog.com/minority-owned-businesses/#sthash.pg9sNmnA.dpuf
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