supplier diversity - december 2011 ibm bedfont lakes
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© 2011 IBM Corporation
IBM Meet the Member Event
Supplier Diversity 7th December 2011 IBM Bedfont Lakes
© 2011 IBM Corporation
"Diversity policies lie as close to IBM's core as they have throughout our heritage. Today,
we‘re building a workforce in keeping with the global, diverse marketplace, to better serve
our customers and capture a greater share of the on demand opportunity."
Sam Palmisano, IBM Chairman
© 2011 IBM Corporation
What is Supplier Diversity? - Definition
51% owned managed and controlled by a minority group.
Global Categories:
Women Owned Business Enterprise (WBE)
Gay, Lesbian, Bi-sexual, Tran-sexual (GLBT)
Ethnic Minority Business (EMB)
People with Disabilities (PWD)
© 2011 IBM Corporation
IBM Supplier Diversity – Going Global
IBM Corporate Policy states
"Wherever IBM operates around the world, we strive to conduct our business in a fair and equitable manner. Consistent with this objective, we follow local laws and customs of the countries in which we operate, and we actively seek to establish close working relationships with businesses indigenous to those countries.
© 2011 IBM Corporation
IBM’s Supplier Diversity Program
© 2011 IBM Corporation
Why does IBM have a Supplier Diversity Program?
Within the diverse communities are rapidly growing markets where IBM is maximizing their opportunities. This is done by driving targeted revenue, mind share, and market share with all diverse owned businesses.
© 2011 IBM Corporation
• Rate of growth and buying power of diverse owned businesses has caught IBM's and IBM customer’s attention.
• Customers require supplier diversity programs and performance reporting from their suppliers. Quarterly spend reports are provided to more than 200 of IBM's largest customers.
• Over $40 billion in IBM's revenue is influenced by the supplier diversity program. A world-class program is a competitive differentiator where new business has been won because of IBM's supplier diversity program.
• IBM are now requiring its suppliers have supplier diversity programs and report their performance to create opportunities for diverse owned businesses throughout the supply chain.
Customers
© 2011 IBM Corporation
IBM recognizes that a diverse supplier base is integral to company profitability and strategic objectives---solidifying the connection between customer satisfaction and winning in the marketplace.
Suppliers
Collaboration helps IBM deliver: innovation, quality products, world-class service
Diverse suppliers become important IBM customers.
© 2011 IBM Corporation
The more we focus on customer differences in buying habits, the better we can leverage
is a key component in the business case for supplier diversity which is focused on accelerating attainment of IBM’s business objectives.
Diversity Brand Loyalty
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Brand Loyalty Builds Strong Customer Relationships and Drives Company Growth
Customers do business with suppliers who understand and respect local conditions, both in geography and culture.
As customers recognize the value of diversity in their workforces, they want to see it in their suppliers.
Bottom line: brand loyalty increases market share, gains new customers, and retains current ones.
© 2011 IBM Corporation
Influence on revenue
Increased market share
Improved customer satisfaction
Support for diverse communities
Government compliance
Supplier growth and development
Enhanced innovation/creativity
Attract and retain talent
Summary of Benefits of Supplier Diversity
© 2011 IBM Corporation
Key Strategic Initiatives for Supplier Diversity 2012
Identification of more Diverse Suppliers
Improved Supplier Tools and Resources – SME Tool Kit (www.us.smetoolkit.org/us/en) – Supplier Connection (www.supplier-connection.net )
IBM Supplier Diversity Mentoring Program
Increase 2nd Tier Opportunities with IBM’s Strategic Suppliers
© 2011 IBM Corporation
Becoming an IBM Diverse Supplier – Next Steps
Diversity Certification – Weconnect, MSDUK
IBM Registration as a Diverse Supplier
Contact with IBM Procurement
Inclusion in competitive tenders
Ongoing feedback
Contracting – Master Framework Agreements, SOWs
– Supplier Questionnaire
– Supplier Conduct Principles Letter agreement
© 2011 IBM Corporation
Summary- How Diversity affects you!
Diversity Matters
Inclusion in competitive tenders
Utilise Tools and Resources
Networking
Partnership and Collaboration
Understand your client
Follow Up
© 2011 IBM Corporation
Questions?