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Accel Advisors
Strategic Sourcing & Supplier Diversity Services
Supplier Diversity Best Practices & Case Studies
Contents


   • Firm Overview & Introduction
   • Service Offerings & Results
   • Supplier Diversity Best Practices
   • ...
Firm Overview



                                                     – Sourcing and Procurement Leadership –


          ...
Service Offerings

     Our focus in Strategic Sourcing & Supplier Diversity has enabled us to develop deep
              ...
Results

  A sampling of our recent client engagements have resulted in more than $100 million in
                     ann...
Results

We have generated annualized savings of 12 to 50% across multiple categories and industries
including consumer go...
Supplier Diversity Best Practices




                                    7
Some of the Best Practices found among leading Supplier Diversity
Programs are as follows:

     Clearly documented and en...
Client Case Studies – Supplier Diversity




                                           9
Case Study – Supplier Diversity


        Case Study Example — Global Outsourcing Company



                    Client Si...
Case Study – Supplier Diversity


        Case Study Example — U.S. Energy Company



                    Client Situation...
Case Study – Supplier Diversity


        Case Study Example — U.S. Government Utility



                   Client Situat...
Case Study – Supplier Diversity


        Case Study Example — National Law Firm



                    Client Situation  ...
Case Study – Supplier Diversity


        Case Study Example — Multi-billion Dollar Regional Healthcare System



        ...
Firm Contact Information – http: www.acceladvisors.com




                      Rod Robinson, Managing Partner
          ...
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Accel Advisors Supplier Diversity Best Practices 2009 [Compatibility Mode]

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Document containing supplier diversity best practices and case studies based on work with Fortune 500 companies and Government buying organizations.

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Transcript of "Accel Advisors Supplier Diversity Best Practices 2009 [Compatibility Mode]"

  1. 1. Accel Advisors Strategic Sourcing & Supplier Diversity Services Supplier Diversity Best Practices & Case Studies
  2. 2. Contents • Firm Overview & Introduction • Service Offerings & Results • Supplier Diversity Best Practices • Supplier Diversity Case Studies
  3. 3. Firm Overview – Sourcing and Procurement Leadership – Accel is a boutique management consulting firm led by former Fortune 1000 procurement executives and alumni of some of the world's leading consulting organizations. Founded in 2005, we develop and execute Sourcing & Procurement-related cost reduction programs for large and middle market companies. In addition to our broad supplier management capabilities, we also have deep expertise in the areas of Supplier Diversity and Minority Business Development. The intersection of our Strategic Procurement expertise and knowledge of the Minority business market has enabled us to help our clients reduce procurement costs while simultaneously increasing spend with Minority-owned businesses. Our engagement results are typically “measurable” cost reduction, improved financial control, and sustainable improvements through optimized procurement organizations. Additionally, we have a track record of helping Minority firms secure growth capital through our relationships with leading private equity firms. Copyright 2009 Accel Advisors, Inc. All Rights Reserved.
  4. 4. Service Offerings Our focus in Strategic Sourcing & Supplier Diversity has enabled us to develop deep expertise across numerous spend areas. Accel Service Offerings Special Supplier diversity procurement Strategic sourcing solutions services Strategic sourcing Spend analysis & Sourcing database program execution assessment development & management Supplier diversity Spend analysis & Make / Buy strategy assessment analysis development Diverse supplier Spend qualification & management selection Procurement Program /policy process implementation improvement Copyright 2009 Accel Advisors, Inc. All Rights Reserved.
  5. 5. Results A sampling of our recent client engagements have resulted in more than $100 million in annual savings on $1.4 billion in sourced spend. ~Recent Client Results~ ~Representative Statistics~ 110 • Dollars sourced: $1.4 Billion 100 • Unique categories: 15 90 80 • Minimum client ROI: 500% 70 • Representative categories $Millions 60 ▸ IT hardware 50 ▸ IT software 40 ▸ Telecom 30 ▸ Temp/Contract labor 20 ▸ Facilities services ▸ Office supplies & equipment 10 ▸ MRO equipment 0 ▸ MRO supplies $150M Medical $2B BPO $10B Global IT Equipment Company Hospitality Services ▸ Professional services MRO Company & Gaming Provider Company Annual Savings Cumulative Savings Copyright 2009 Accel Advisors, Inc. All Rights Reserved.
  6. 6. Results We have generated annualized savings of 12 to 50% across multiple categories and industries including consumer goods, hospitality, manufacturing, healthcare and utilities. ~Representative Category Experience~ Chemicals Raw materials Telecommunications Specialty Chemicals Ingredients Office Supplies Packaging General Contracting/Construction Landscaping MRO Fleet/vehicles Training Lab Supplies Temporary Labor Printing Transformers Engineering Services Multimedia NDE equipment Admin Services Cell Phones Transmission Poles Hard Hats Marketing Radios/mobile communication Security Real Estate IT Hardware Call Center Travel IT Software Fuel Office Equipment Waste Management Computers PVF Electrical Equipment Instrumentation Tools Pumps Compressors Catalyst Scaffolding Furniture Electrical Contracting Facilities services Consulting Courier HR Benefits Insurance Transportation/3PL Gas Contracts Construction Material Safety Equipment Copyright 2009 Accel Advisors, Inc. All Rights Reserved.
  7. 7. Supplier Diversity Best Practices 7
  8. 8. Some of the Best Practices found among leading Supplier Diversity Programs are as follows: Clearly documented and endorsed commitment from CEO Specific annual spend goals for sourcing/procurement from diverse businesses Diversity spend goals developed “bottom-up” at the category-level Attainment of goals tied to the compensation and performance plans of senior leadership Inclusion of Supplier Diversity in Company/Business Unit Strategies Head of the Supplier Diversity program is at the senior management level or above, and has control over corporate purchasing Consideration of minority owned businesses included as a formal part of the contracting procurement process Second-tier subcontracting to minority owned businesses also included as part of that process and written into the prime supplier's contract A comprehensive database of diverse owned business that is actively maintained and integrated into the purchasing process Purchasing system that tracks supplier diversity performance and can target specific contracts for additional focus, outreach, or consideration Visibility on the company's Internet website, including program details, contacts, and list of products and services purchased Strategic partnerships with ethnic chambers, publishers, and other organizations that can assist in outreach 8
  9. 9. Client Case Studies – Supplier Diversity 9
  10. 10. Case Study – Supplier Diversity Case Study Example — Global Outsourcing Company Client Situation Project Approach Result • Leading provider of business • Conducted High-level Spend • Identified opportunities to process outsourcing services Analysis increase diverse spend by over • Annual spend of $2 billion • Identified target pilot categories 300%, while achieving about for Supplier Diversity Program 10% in cost savings • Client was challenged to meet supplier diversity requirements of • Analyzed Procurement • Developed Supplier Diversity various government contracts as Processes and Technology Policies, Processes, and Metrics well as increased scrutiny of • Analyzed business and customer • Recommended certifications commercial customers. requirements around Supplier strategies (e.g., NMSDC, • Accel was engaged to: Diversity and built business case WBENC, state/local/federal, etc) • Conduct an assessment of for supplier diversity • Developed Diverse/MWBE current supplier diversity • Conducted competitor analyses supplier strategies, including practices and requirements around Supplier Diversity and preliminary list of qualified benchmarked client against prospective Diverse Suppliers • Make recommendations on industry and general best by category improvements to current supplier diversity processes practices • Designed internal and external • Explored and identified revenue stakeholder communication • Recommend categories enhancement opportunities plans where diverse spend can be increased and recommend through diverse supplier • Developed performance diverse supplier prospects partnerships monitoring and reporting tools • Examined tier-2 diverse spend and targets, tied back to client • Develop corporate supplier by client’s prime suppliers contracts diversity metrics and targets • Designed a supplier diversity program management office Copyright 2009 Accel Advisors, Inc. All Rights Reserved. 10
  11. 11. Case Study – Supplier Diversity Case Study Example — U.S. Energy Company Client Situation Project Approach Result • A Leading Company in Energy • Conducted detailed analysis of • Designed a comprehensive best- Sector client’s total expenditures in-class supplier diversity • Annual spend of $11.6 Billion • Reviewed client’s Supply Chain program for client • Client had no formal Supplier Policies, processes and • Identified opportunities to Diversity Program and was Procedures increase diverse spend and interested in: • Conducted a comprehensive surpass the goal of $250M by CAPS data comparison around launching a series of diversity • Executing any “quick hit” sourcing efforts targeted around opportunities that could drive supplier diversity specific categories them toward successful • Conducted a comprehensive achievement of their $250 competitor benchmark analysis • Recommended a fully integrated million diverse spend goal sourcing and supplier diversity • Developed plans, timelines and technology tool for client • Developing diverse sourcing estimates of resources (both strategies, and preliminary internal and external) to • Identified opportunities for client list of qualified prospective implement and manage a to improve, manage, and report diverse suppliers for target successful supplier diversity its prime suppliers’ diverse categories program spend (Tier-II spend) • Developing strategies for fully • Analyzed categories of spend • Designed and Recommended a integrating supplier diversity that could be quickly and easily complete supplier diversity with sourcing and the other leveraged to achieve client’s program management office organizations within the supplier diversity goals company Copyright 2009 Accel Advisors, Inc. All Rights Reserved. 11
  12. 12. Case Study – Supplier Diversity Case Study Example — U.S. Government Utility Client Situation Project Approach Result • Client: Government Regional • Conducted an assessment of the • Identified opportunities to shelter Utility client’s current SBE program 12 material groups and about $30 million in spend for client • Annual Spend: $615 million • Assessed the client’s under its sheltered market procurement processes and • The client was interested in an program vendor management tools to analysis of its contracts with ensure that the right framework • Identified opportunities to respect to their Sheltered Market was in place for implementing increase client’s diverse spend Program the sheltered market to 20% of total spend • Accel was engaged to conduct • Analyzed 50 material groups that • Recommended techniques and an analysis that resulted in a list accounted for 90% of spend to tools for using SAP to effectively of spend categories that met the determine sheltering opportunity track, monitor, and report on criteria of the district’s sheltered supplier diversity market program • Developed recommendations on how to use SAP to effectively • The client was also interested in track and monitor client’s SBE identifying areas of SAP that can program be better utilized to monitor, track and report on the SBE • Conducted comparative Program analyses using a best-in-class utility as the benchmark Copyright 2009 Accel Advisors, Inc. All Rights Reserved. 12
  13. 13. Case Study – Supplier Diversity Case Study Example — National Law Firm Client Situation Project Approach Result • A leading national law firm • Conducted detailed analysis of • Identified opportunity to increase identified the need for a more client’s total expenditures the client’s diverse supplier holistic diversity strategy that • Reviewed client’s Procurement spend from 7% to 15%. incorporated the benefits of Policies, processes and • Opportunity was identified hiring, selling and buying Procedures across six categories including diverse. office supplies, travel, recruiting, • Conducted a comprehensive • Client had no formal Supplier CAPS data comparison around document management and Diversity Program, but realized supplier diversity PR/marketing. that it was becoming increasingly • In addition to increased diversity important among key clients. • Conducted a comprehensive competitor benchmark analysis spend, benefits also included a • Accel was engaged to conduct a 5% reduction in procurement comprehensive analysis that • Developed plans, timelines and costs across the target encompassed a baseline estimates of resources (both categories. assessment of current practices, internal and external) to benchmarking against best-in implement and manage a class and strategies for closing successful supplier diversity identified gaps. program • Analyzed categories of spend that could be quickly and easily leveraged to achieve client’s supplier diversity goals Copyright 2009 Accel Advisors, Inc. All Rights Reserved. 13
  14. 14. Case Study – Supplier Diversity Case Study Example — Multi-billion Dollar Regional Healthcare System Client Situation Project Approach Result • A leading provider of health • Conducted detailed analysis of • Identified opportunities to services within its local and client’s total expenditures increase diverse spend by 90% regional markets, client realized • Reviewed client’s Supply Chain by launching a series of diversity the importance of implementing Policies, processes and sourcing efforts targeted around a Supplier Diversity Program that Procedures specific categories including facilitated supporting businesses construction, collections, linen, that fueled economic growth • Conducted a comprehensive printing and fleet management. within its operating markets. CAPS data comparison around supplier diversity • Initiative resulted in 6% annual • Client was challenged by key savings from related supplier internal and external • Conducted a comprehensive consolidation. stakeholders to develop and competitor benchmark analysis • Developed a comprehensive implement a world-class Supplier • Developed plans, timelines and best-in-class supplier diversity Diversity Program. estimates of resources (both program . • Accel was engaged by the client internal and external) to implement and manage a • Identified opportunities for client executive leadership team to to improve, manage, and report assist with the development and successful supplier diversity program its prime suppliers’ diverse implementation of the program. spend (Tier-II spend). • Analyzed categories of spend that could be quickly and easily leveraged to achieve client’s supplier diversity goals 14 Copyright 2009 Accel Advisors, Inc. All Rights Reserved.
  15. 15. Firm Contact Information – http: www.acceladvisors.com Rod Robinson, Managing Partner 8044 Montgomery Road, Suite 700 Cincinnati, OH 45236 Phone: (513) 562-1262 Email: rod.robinson@acceladvisors.com 15
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