2013 sblo training cargill-j taylor 6-19-13

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  • 1. 2013 Minnesota SBLO Training June 20, 2013 Hosted by Medtronic “It Takes More Than the SBLO” Cargill Overview
  • 2. Supplier Diversity Commitment At Cargill, we recognize we are a stronger company when we tap the power of diversity. We have increased our commitment to purchase from small business enterprises and diverse businesses by providing an equal opportunity to bid to meet our procurement needs. We want our supplier base to reflect the communities in which our employees and customers live and work. We seek small and diverse suppliers who can provide competitive pricing, quality products or services and technical support for our businesses. We are also looking for diverse suppliers who have the capacity to meet our needs, and who can increase efficiency through innovation, technology and low-cost sourcing. For Cargill, small and diverse business is a strategic business imperative, and it is, simply, good business. Greg Page, CEO and President
  • 3. ‹#› © 2012 Cargill, Incorporated. All rights reserved. Nourishing Ideas. Nourishing People.TM Cargill’s Vision Our purpose is to be the global leader in nourishing people. Our mission is to create distinctive value. Our approach is to be trustworthy, creative and enterprising.
  • 4. ‹#› © 2012 Cargill, Incorporated. All rights reserved. Nourishing Ideas. Nourishing People.TM Cargill touches lives in more ways than you’d imagine. From formula that helps infants grow to icing on birthday cakes to eco-friendly foam in couches and mattresses. to zero-calorie sweetener in your coffee to steaks at your favorite restaurant
  • 5. ‹#› © 2012 Cargill, Incorporated. All rights reserved. Nourishing Ideas. Nourishing People.TM Cargill touches the world of business too. From farmers to Fortune 500 companies. Helping farmers optimize yields, store crops and access the best markets Formulating better-tasting recipes for restaurants and packaged foods Creating food ingredients that promote health Managing risk and stabilizing pricing for farmers and corporate customers Creating supply chains and shipping products to over 6,000 ports worldwide
  • 6. ‹#› © 2012 Cargill, Incorporated. All rights reserved. Nourishing Ideas. Nourishing People.TM Cargill fiscal year 2012 results As of May 31, 2012 (U.S. dollars) Earnings from continuing operations $ 1.17 billion Revenues $133.9 billion Cash flow from operations $ 3.5 billion
  • 7. ‹#› © 2012 Cargill, Incorporated. All rights reserved. Nourishing Ideas. Nourishing People.TM We buy, process and distribute grain, oilseeds and other commodities to makers of food and animal nutrition products. We also provide crop and livestock producers with products and services. We provide food and beverage manufacturers, foodservice companies and retailers with high-quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems. We provide our agricultural, food, financial and energy customers around the world with risk management and financial solutions. We serve industrial users of energy, salt, starch and steel products. We also develop and market sustainable products made from agricultural feedstocks. Cargill is composed of 75 businesses organized around four major segments. Agricultural Food Financial Industrial
  • 8. Tartan On-Boarding Document8 L.A. Regional Leader APAC Regional Leader Global CSS COE Manager Global PM&S Manager Global Strategic Sourcing Leader Julian Chase HR ManagerController NA Regional Leader EMEA Regional Leader Global Strategic Sourcing
  • 9. Tartan On-Boarding Document9 NA Ingredients Manager Kim Conboy Business SS Manager Team NA4 Salt Animal Nutrition Business SS Manager Team NA2/Capital Project Corn Milling Ag Horizon Global Strategic Sourcing Leader Julian Chase Business SS Manager Team NA1 Oilseed Refining Cocoa & Chocolate N.A CM&S Manager Kate Westermeyer N.A. Regional Leader Andrew Glass Global Chemicals Manager Laurie Chamberlin NextPrevious North America Regional Leader Direct Reports Business SS Manager Team NA5 Wichita Meat Busninesses N.A. PM&S Manager Mike Rizor Global Packaging Manager Brian Lansing
  • 10. Cargill Supplier Diversity, Confidential Five Elements of Cargill Strategic Sourcing 10 Define Need & Establish Team Research & Diagnostic Strategy Development Strategy Implementation Ongoing Value Management & Strategy Refinement • Project Charter • Stakeholder List • Internal Research • External Research • Cost Modeling • Hypothesis Generation • Identify Diverse Businesses • Hypothesis Testing (RFI) • Strategy Development • Implementation Roadmap • Potential TGRC Review • Determine Carve Out Opportunity • Market Testing (RFx) • Negotiations • Operating Model Changes • Policy & Demand Changes • Tracking & Measurements • Coordinating 2nd Tier Requirements • Category Knowledge • Strategy Refinement • Category Performance Improvement • Supplier Management • Contract Management • Quarterly Stakeholder Reviews • Mentoring Diverse Suppliers Where does Supplier Diversity fit? • Meeting Cadence • Status Report • Name Supplier Diversity Champion Category Management
  • 11. The objective of our small business / supplier diversity program is to increase diverse spend by 7 to 10 percent Contract with new suppliers Actively search and qualify diverse suppliers prior to RFP Leverage partnerships and new technologies to locate new small business and diverse suppliers…PTAC NMSDC, WBENC & Cargill registration portal Allocate a portion of spend specifically with SB - MWBE Determine the diverse suppliers best opportunity and scope within the RFP parameters Continue match-making sessions to better bench- strength of the diverse suppliers Develop 2nd tier customer requirements Include 2nd tier language in new and revised contracts Actively educate prime suppliers on CSS SD goals Grow our existing SB - MWBEs and develop sustainable partnerships Explore opportunities with diversity suppliers based on our long term objectives Utilize our external relationships with organizations such as MEDA to help develop capacity for diverse suppliers There are four pillars to Supplier Diversity *SB = All Small Business Categories
  • 12. Supplier Diversity Execution Process Identify the up-coming sourcing opportunities • SD meets with the Cargill Supplier Diversity Champions to review the diverse suppliers requirements Using the tools and relationships to identify and source the right diverse suppliers • Cargill Supplier Diversity Portal • Partnerships with SBA, PTAC, MEDA, NMSDC, WBENC, WBDC, MMSDC, Industry Groups etc. • Establish Symposium events to introduce diverse suppliers to Cargill • Creating opportunities for the diverse supplier to engage with the sourcing specialist Mentoring Relationship • Assisting the diverse supplier with any questions concerning the Cargill sourcing process • Engage the sourcing specialist and the small business or diverse supplier • Provide feedback
  • 13. Key Challenges and Opportunities Rationalization of the Cargill Supply Base • Engaging diverse suppliers that have the bench-strength and capacity to support Cargill in a large regional opportunity • Encourage the development of partnerships with our primes and diverse suppliers • Look for opportunities for diverse suppliers to form JV’s with other diverse suppliers Global vs. Local Opportunities • Explore opportunities where the diverse suppliers can participate in a 2nd tier space • Mentor those diverse suppliers that have the skill sets to achieve the next level Increasing our Percentage of Spend as required by the Government • Develop & execute the training and tools to understand our contractual requirements as a government supplier • Outreach to small businesses • Education of small businesses
  • 14. Supplier Diversity Website www.cargillsupplierdiversity.com DIR Registration Portal Powered By SupplierGATEWAY
  • 15. Questions