supplier diversity: next practices november 22, 2016...supplier diversity –a set of processes that...

Supplier Diversity: Next PracticesNovember 22, 2016

Diversity Best Practices Follow @DBP_News at the #DBPMember + join the game-changing diversity and inclusion conversation!

Kevin LyonsAssociate Professor

Rutgers University

DBP Web Seminar:

Supplier Diversity: Next Practices

Trends and StrategiesKevin Lyons, Ph.D., Associate Professor, Rutgers Business School

Supply Chain Management Department –and-

Director, Public Private Community Partnerships

Rutgers Institute for Data Science, Learning, and Applications (I-DSLA

Overview

• Capacity Building

• Social Impact Quantified and Value-Added

• Newark, NJ Local Procurement Case

4

Capacity Building

• Embedding university and K-12 students (SD/SCM Summer Camps)

• Local Anchor Capital Investments

• Local Procurement/Buy Local Contracts

• On-going peer-reviewed assessments and benchmarking

• Social Impact Analytic Tools

• Social Impact as a Value-added Strategy

• Mission, Marketing, Accountability

Social Impact Quantified and Value Added

7

Newark NJ Case Study

Newark Business Reports (’12, ‘14)

GOALS

1. Accelerate innovation to improve productivity, processes and product development

2. Promote sustainable supply chains & resource efficiency

3. Connect manufacturers to new market opportunities

4. Create a 21st century manufacturing workforce

5. Link physical transformation to economic transformation

Manufacturing in Newark/Essex

(greater Newark region) is highly diversified.42 Anchors, 400 Mfg (10K Workers), 1,200 SBE,

800 DBE• Agriculture

• Fabricated metal

products

• Apparel & Accessories

• Textiles

• Food & Beverage

• Chemicals

• Furniture

• Building materials

• Printing & Packaging

• Resin & PLASTICS

42 Anchors 3% Procurement ($30 Million)

At the same time the Anchors procure

$5 Million worth of textile products from

outside of the Newark area

TAnchorTotal Procurement: $5Mill.

If Beth Israel procured $150K

worth of textile products from 2

local manufacturers

Textile Procurement Local: $150K

Our system can show a simulation of a

Beth Israel's textile procurement

Using the industry filter all companies in

textile industry can be visualized on the

map

Our analytics shows that Newark’s Textile

industry is very significant compared to the

neighboring cities

There are 9 companies in textile

manufacturing in Newark employing 170

people with potential capacity of $15

Million

How to Capture, Visualize and Analyze the Data for

Meaningful Change? Rutgers Big Data System!

Newark would have

additional capacity to

fulfill Beth Israel's and

several other anchor’s

textile needs.



We can visualize how vacant property

could be used by manufacturers to impact

neighborhoods

# of vacant lots per neighborhood



By turning on the crime heat map we can

see how much a specific neighborhood

is effected by crime.



Employment by neighborhood

Crime by neighborhood

Given the employment generated by the

capacity expansion we can project the drop in

number of crimes

U.S. Bureau of Labor Statistics and the U.S. Department of Labor; http://www.documentingexcellence.com/modeling/unemployment_crime.htm

http://digitalcommons.iwu.edu/cgi/viewcontent.cgi?article=1069&context=parkplace

Port Activity


Meaningful Change? Social Impact …

http://www.documentingexcellence.com/modeling/unemployment_crime.htm

http://digitalcommons.iwu.edu/cgi/viewcontent.cgi?article=1069&context=parkplace

http://www.marinetraffic.com/ais/home

Conclusion

• Companies that engage with diverse suppliers are socially responsible while increasing their reputation and their bottom-line.

• This reputation is achieved by enhancing the well-being of all stakeholders, increasing profitability and customer satisfaction.

• We are also tracking and quantifying social impact in real-time.


Beverly JenningsHead Global Supplier Diversity and Inclusion

Johnson & Johnson

Diversity Works at Johnson & Johnson

For 130 years, Johnson & Johnson has been creating

break-throughs in health care. We have found that true

innovation requires collaboration, and collaboration is

driven by diverse opinions, approaches, ideas and

individuals. The diversity of our employees, suppliers and

partners is not just about good citizenship; it’s about good

business. Diversity works at Johnson & Johnson.

ALEX GORSKY

Johnson & Johnson

Chairman and Chief Executive

Women’s Business Enterprise National Council

Natio

nal M

ino

rity Sup

plie

r De

velo

pm

ent C

ou

ncil

Div

ers

ity

Inc.

Billion Dollar RoundtableBEST PRACTICES

1. Policy and Top Corporate Management Support 2. Diverse Suppliers Business Development Plan 3. Internal and External Communications4. Diverse Suppliers Development Process 5. Opportunities in Strategic Sourcing, Revenue Enhancement,

and Supply Chain Management6. Tracking, Reporting and Goal-Setting Mechanisms7. Diverse Suppliers Continuous Improvement Plan8. Second-Tier Program9. Understand Public-Sector Supplier Diversity10. Integrate into Sustainability Initiatives11. Engage HBCU 12. Establish Global Supplier Diversity

NMSDC Top Corporation Award Winners: Global Link Category Johnson Controls Johnson & Johnson

Supplier Diversity Building Block


LEAD & DELIVER

“Dow Jones” format: monthly updates

on performance versus goals

Comparable Industries Benchmark

Wheel Spend Categories

CONNECT & SHAPE

GROW & SUSTAIN

https://www.google.com/url?q=http://nonstopecho.com/how-to-make-a-business-plan/&sa=U&ei=p2NOU7fqBsqGyASMr4C4Ag&ved=0CEgQ9QEwDQ&usg=AFQjCNEG6WrT8vULOS_zgaBZk5hAqV7mRA

https://www.google.com/url?q=http://nonstopecho.com/how-to-make-a-business-plan/&sa=U&ei=p2NOU7fqBsqGyASMr4C4Ag&ved=0CEgQ9QEwDQ&usg=AFQjCNEG6WrT8vULOS_zgaBZk5hAqV7mRA

Reach Customers & Consumers

Collaboration with Customer Teams • Tier II Success Stories


Reginald LaytonVice President, Supplier Diversity

Johnson Controls

A look at Johnson Controls, Inc.

We are a global diversified multi-industrial company with established core businesses in the automotive and building industries

Power Solutions

The leading supplier of lead acid batteries

and advanced batteries for Start-Stop and

hybrid systems.

Buildings

Providing equipment, controls and services for heating, ventilating, air-

conditioning, refrigeration and security systems for buildings that help people

achieve.

An expanding global footprint means we are where our customers need us

135,000employees serving customers in

150+countries

2,000 Locations

Generating

$37 Billionin Revenue

Alex Molinaroli

Chairman, President and Chief Executive Officer

Our Governance

Our supplier diversity initiative is directed by senior management

and is integrated into our corporate strategy.

We do business with historically underutilized population groups while satisfying our customers’ needs.

500+

Supplier Diversity – A set of processes that strengthen relationships with companies that are owned,

operated and controlled by historically underutilized population groups.

Johnson Controls is one of only 24 U.S. firms in the Billion Dollar Roundtable, a group of companies that

spend $1 billion or more each year with certified women and minority -owned suppliers.

diverse

suppliers

50+purchasing

categories

2 17.486

235

505

10211071

113110231004

1500

1656

938

1150

1685

18781914

1718

1501

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Diverse Purchases - $Millions

107,327+ employed

people

Establish Corporate Policy

and Top Corporate

Management Support

Establish a Supplier Diversity

Program Plan

Establish Comprehensive

Internal and External

Communications

Identify Opportunities in

Strategic Sourcing, Revenue

enhancement, and Supply-Chain

managementEstablish

Comprehensive Diverse-Supplier Development/

Capacity Building Process

Establish Tracking, Reporting and Goal

Setting Mechanisms

Establish a Continuous

Improvement Plan

Establish a Second-Tier

Program

Our approach: We pursue best practices leadership

BEST PRACTICESINMINORITYSUPPLIERDEVELOPMENT

GUIDELINES


Establish Comprehensive Diverse-Supplier Development/ Capacity Building Process

• We have two models for supplier development/capacity building

Capacity Building Activity

Best Practices

Module

Leader

Corporation

MBEs MBEs

CorpsCorps

Regional Business Module

In NMSDC’s Centers of

Excellence

www.engagementcenterplus.com




Capacity Building Activity

Best Practices

Module

Leader

Corporation

MBEs MBEs

CorpsCorps

Regional Business Module

In NMSDC’s Centers of

Excellence

• Six Sigma

• Lean Manufacturing

• Executive Education

• Proposal Development

• Financial Analysis

• Bonding Support

• Project Estimating

• Project Management

• Strategic Selling

• Human Resource

Management

Technical Assistance and Capacity Building

Activity provided by Corporations

8-10 Corps with 16-24 MBEs




www.engagementcenterplus.com

All Cohorts

Doing Business with Corporate America Overview

Corporate CohortBenchmarking PLUS

Diverse Supplier Cohort Capacity PLUS

Host CohortConnections PLUS

Profile Development

Profile Development

Profile Development

Supplier Diversity Assessment

Supplier Capability Assessment

Governance Knowledge Assessment

Supplier Diversity As-Is Analysis

Supplier Capability As-Is Analysis

GovernanceAs-Is Analysis

Supplier Diversity Best Practice Implementation Plan

Capacity Building Plan StakeholderEngagement Enhancement Plan

Supplier Diversity Enhancement Tasks

Capacity Enhancement Tasks

Engagement Enhancement Tasks

Customizable Corporate Pages

Customizable Diverse Supplier Pages

Customizable Host Organization Pages




www.engagementcenterplus.comDuring the development cycle, PLUS-Platforms:

1. Extracts statistical information from cohort

participates

2. Provides Executive Performance Metric

Summaries (Dashboards)

3. Assigns tasks for each cohort

4. Produces task histories and audit trails

5. Broadens scope and perception of strategic

procurement applicability beyond supplier

diversity for MBE cohort and Regional

Council Cohort

6. Provides cohort participants with an

opportunity to learn about policies,

procedures and project opportunities of

cohort participants

7. Identifies performance gaps and document

targets and plans for improvement

8. Documents success stories for publishing