Managing Supplier Diversity

1
Masterfoods USA Supplier Diversity

• Managing Supplier Diversity
• Expanding our supplier diversity base is
  essential to Masterfoods USAs ability to compete
  effectively in the marketplace of the future.
• A diverse supply base provides MFUSA access to
• new ideas
• expanding markets
• growing consumer base
• consumer insight
• cost-competitive inputs
• diverse business solutions
• In order to realize these benefits, it is
  imperative to create and maintain an environment
  that enables every associate to fully contribute
  to the achievement of our corporate diversity
  goals.
• Through Supplier Diversity, we create value for
  our consumers, customers and stakeholders in
  communities where MFUSA conducts business.

• Supplier Diversity Defined
• A fundamental business strategy helping to build,
  expand,
• penetrate and service growing markets. It is
  fueled by a
• set of processes that strengthen business
  relationships
• with small business concerns and companies owned,
  
• operated and controlled by minorities and women.
• Supplier Diversity Importance
• Demographic shift - minorities/women are ever
  increasing percentage of total population
• Supplier participation reflective of diverse
  business community
• Encourages economic development in federal,
  public and private sector marketplaces
• Critical to sustained economic engagement, growth
  and success in global economy
• Supplier Diversity Drivers
• Minorities fastest growing segment of population
• Women-owned businesses employ 20 of US workforce
• Minority purchasing power increasing
• Women (86) maintain high product loyalty
• Minorities voting with their dollars

• Supplier Diversity Reporting
• Federal regulations require that suppliers and
  contractors (those conducting business with the
  Federal Government) are to engage diverse
  business enterprises through subcontracts in all
  commodity, goods and services categories with
  subcontracting opportunities.
• Public and private industry customers follow this
  same practice.
• First Tier Suppliers
• A first-tier supplier provides products/services
  to MFUSA (prime) and invoices MFUSA directly for
  the goods/services rendered.
• Second Tier Suppliers
• A second tier supplier provides the
  products/services to the First Tier Supplier and
  invoices the first-tier supplier directly for
  goods/services rendered.
• Benefits of First Second Tier Sourcing
• Build positive brand and corporate image
• Enhance customer and brand loyalty
• Additional support for regulatory/legislative
  agendas
• Quality, service, price and technology
  improvements
• Access to growing market of diverse consumers

Supplier Diversity Strategic Sourcing Process
2
Terminology and Resources http//supplierdiversity
.masterfoodsusa.com
Supplier Review Process Step 1 Review spend by
individual sourcing group to maximize specific
opportunities. Step 2 Analyze incumbent supplier
classifications for growth opportunities and/or
scalability. Step 3 Based on MFUSA priority,
target a specific sourcing group. Step 4
Collaborate with Supplier Diversity Group to
profile sourcing group based on business
requirements and diverse classification
hierarchy. Step 5 Utilize sourcing resources
(websites databases) to identify, quantity and
evaluate potential new diverse suppliers. Step
6 Collaborate with Supplier Diversity Group to
develop a plan supporting increased diverse
supplier participation and integration. Identify
specific steps, time-lines, and key stakeholders.

• Federal Government Classifications and Goals
• SDB - Small Disadvantaged Business
  (Minority-Owned)
• At least 51 owned and controlled by socially and
  economically disadvantaged individuals
• Must be SBA certified
• Government Goal 5 of total spend
• www.ccr.gov or www.sba.gov
• HUBZone Small Business
• Located in Historically Underutilize Business
  Zone (HUBZone)
• 35 of employees must reside in HUBZone area
• Must be certified by SBA
• Government Goal 3 of total spend
• www.ccr.gov or www.sba.gov/hubzone
• VOSB - Veteran-Owned Small Business
• Government Goal 3 of total spend
• www.ccr.gov or www.sba.gov/vets
• SDVOSB - Service-Disabled Veteran-Owned Small
  Business
• Government Goal 3 of total spend
• www.ccr.gov or www.sba.gov/vets

• Commercial Public Sector Classifications
• MBE - Minority Business Enterprise
• 51 minority ownership and control
• May be self-certified prefer third party
  certification
• National Minority Supplier Development Council
  (NMSDC) certified
• www.nmsdc.org
• WBE - Women-Owned Business Enterprise
• 51 woman ownership and control
• Can be self-certified, but encourage third party
  certification
• Women Business Enterprise National Council
  (WBENC) certified
• www.wbenc.org

MFUSA Supplier Diversity Website On-line enabler
for buyers to locate potential diverse suppliers
and/or retrieve designated information (e.g.
company name, product or service description,
SIC Code, NAICS Code, State or Business Type
Code). Additionally, the site provides on-line
supplier registration that is accessible to all
suppliers for input of supplier profile data and
related certification credentials. To locate all
information pertaining to MFUSAs Supplier
Diversity initiative, you may access the
following site directly or through
GBD http//supplierdiversity.masterfoodsusa.com