Leveraging the most trusted supplier information to help you achieve your supplier diversity goals

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Leveraging the most trusted supplier information
to help you achieve your supplier diversity goals

• February 16, 2005

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Every day you make critical business decisions to
achieve your supplier diversity goals and for
those decisions you need quality information
Achieve Supplier Diversity Goals

• How can I get a baseline of the diversity in my
  existing supplier portfolio?
• What is the diversity of your supplier portfolio?
  
• How are your diverse suppliers classified?
• How much are you spending with each
  classification of diverse suppliers?
• Are you meeting all corporate, federal, state and
  Tier 2 requirements and accurately reporting
  them?
• How can I find other diverse suppliers that meet
  my needs?
• What other suppliers are in this specific
  industry that may better meet my needs?
• Does this supplier have facilities where I need
  them?
• Is this supplier experienced and financially
  stable?

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When making these decisions, you are challenged
by
Achieve Supplier Diversity Goals
Limited access to third-party information
Under reporting and mis-stating spend with
diversesuppliers
Accurate reporting
Changing market and supplier diversity dynamics
Outdated information
Time-consuming qualification process
Limited visibility to total diverse spend
Federal, state and local governments as well as
company and Tier 2 requirements
Direct access to diverse suppliers
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You are also challenged by how frequentchange
among suppliers impacts your decision making
Achieve Supplier Diversity Goals
Every
14 seconds a judgment is filed against a supplier
4 hours a suppliersownership changes
60 seconds a suppliers risk profile changes
8 minutes a supplier filesbankruptcy
2 minutes a directorship (CEO, CFO, etc.) change
occurs
3 minutes a supplier ceasesoperations
2 minutes a new business opens
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Without accurate, complete and timely
information, it is difficult to achieve your
supplier diversity goals
Achieve Supplier Diversity Goals

• Supplier diversity goals
• Meet federal, state and local requirements
• Meet customer requirements on Tier 2 suppliers
• Meet internal goals

• Information needs
• Accurate, complete and timely information
  including supplier diversity classifications
• Supplier diversity classifications including
  segmentation by ethnicity level and certification
  details
• Supplier diversity classifications, including
  segmentation by direct suppliers and Tier 2
  suppliers

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The consequences of not achieving your supplier
diversity goals may be severe and may damage your
brand
Achieve Supplier Diversity Goals

• Non-compliance with reporting requirements will
  limit government contractors ability to sell to
  federal and state governments
• Inability to respond to requests to review
  supplier diversity results, including 2nd tier
  reporting will affect your customer relationships
• Ignoring changing domestic and global
  demographics will impact your ability to compete
  in an increasingly global and diverse economy
• Public disclosure of non-compliance or poor
  performance will negatively impact your brand

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We have been in business for over 160 years to
provide the insights you need to make confident
business decisions
Achieve Supplier Diversity Goals
To be the most trusted source of business
insight so our customers can decide with
confidence
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Our patented process of collecting from multiple
sources and enhancing data into quality
information is called DUNSRightTM
Achieve Supplier Diversity Goals
Entity Matching 2
D-U-N-S Number 3
Corporate Linkage 4
Predictive Indicators 5
Global Data Collection 1
Quality Information
DB Global Database
Quality Assurance
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DUNSRight provides the quality information and
insights you need to achieve all of your
procurement objectives
Reduce Spend
Mitigate Risk
Achieve Supplier Diversity Goals
Improve Compliance

• What is your total spend (who, what and by whom)?
• Where are the opportunities to increase
  negotiating leverage?
• Which other low-cost suppliers meet your needs?
• Are you achieving your annual savings goals?

Are your suppliers likely to go out of
business? Are your suppliers too dependent on
you? Where is the risk and exactly who is at
risk? Are your suppliers involved in any
fraudulent activities? Which other stable
suppliers meet your needs? How is your risk
changing over time?
How diverse is your supplier portfolio? Are you
spending enough with diverse suppliers? Which
other diverse suppliers should you be using? Are
you meeting all corporate, federal and state
requirements?
Are you achieving your annual savings goals?
Are you spending enough with diverse
suppliers? Are you reporting your high risk
suppliers as part of Sarbanes-Oxley compliance?
Do you know if your suppliers are linked to
terrorist organizations as required by the
Patriot Act? Are your suppliers involved in any
fraudulent activities?
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To help you achieve your supplier diversity
goals, our DUNSRight process combines database
breadth and depth with matching expertise
Achieve Supplier Diversity Goals
Most powerful predictive indicators in the
industry help manage your risk exposure across
your diverse portfolio
Data collection expertise uses 350 sources to
build the largest supplier diversity database
with 15M small businesses and over 4.3M
classifications so you can report the diversity
of your suppliers
Patented matching process quickly identifies the
accurate supplier diversity classification and
certification status of your diverse suppliers
Unique identifier tracks business change so you
can know if change in ownership and
classifications or significant events impacts the
diversity status of your supplier portfolio
Unparalleled global linkage capabilities uncovers
all related branches and subsidiaries associated
with a diverse supplier so you can identify
opportunity or risk
Quality Assurance
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These insights allow you to make more confident
supplier diversity decisions as you analyze,
source and manage your supplier portfolio
Achieve Supplier Diversity Goals

• You can analyze the diversity of our supplier
  portfolio better because
• You have the most up-to-date and accurate
  supplier diversity information
• You have total visibility of the diversity in
  your supplier portfolio
• You understand how your diverse suppliers are
  classified
• You know how much you are spending with diverse
  suppliers
• You understand the opportunity with related
  diverse suppliers in a corporate family
• You can source new diverse suppliers quickly
  because
• You can source by diverse classification,
  industry, location and/or financial stability
• You can manage the diversity of your portfolio
  better because
• You have the summary level supplier diversity
  information for 294/295 federal reporting
• You have the detailed ethnicity information
  needed for custom or Tier 2 reporting
• You know if your suppliers are certified to
  respond to segmented reporting requests
• You can integrate your enhanced supplier
  diversity information into your systems

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You have the most up-to-date supplier information
to analyze your supplier diversity since we
update our database over one million times a day
Achieve Supplier Diversity Goals

• Direct Investigations, News and Media
• 115 million phone calls annually to businesses
• Top news providers
• Merger/acquisitions

• Payment and Financial Data
• 580 million trade records updated annually
• 100 coverage of public company financials
• 97 of all financials are from privately held
  companies

DB Global Database 92 million businesses
Over 200 countries Over One Million Daily Updates

• Public Records and Government Registries
• 134 million
• Suits, liens, judgments and bankruptcy filings
• Business registrations

• Web Sources and Directories
• 4.7 million URLs
• Updates from 27 million domains
• 90,000 customers providing online updates

DB D-U-N-S Number
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350 sources - including federal, state and local
agencies - provides the breadth to the worlds
most complete supplier diversity database
Achieve Supplier Diversity Goals

• Third-Party Sources
• Business partner network (PRONet CCR)
• Select state and local government agency files
• Independent certification agencies
• Directories, list providers
• Partnerships and alliances, member organizations,
  chambers, etc.

DB Supplier Diversity Database 15 Million
Small Businesses 4.3 Million Socio-Economic
Classifications DB D-U-N-S Number

• Direct Contact with Companies
• Phone
• Web

• Leverage the Full DB Database
• 92 million businesses
• Direct investigations, news and media
• Payment and financial information
• Public records and government registries
• Web sources and directories

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Both the sources and the data are independently
evaluated to confirm the accuracy of your
supplier diversity information
Achieve Supplier Diversity Goals

• Third-party sources are selected and qualified
  before being matched against DBs database
  stringent match requirements are upheld and
  linkage is done where appropriate
• DB sources are also qualified before being added
  to our Supplier Diversity database
• Minority- and women-owned suppliers must be
  self-identified or identified by a third-party as
  being at least 51 owned and controlled
• Filters eliminate foreign-owned, publicly held,
  and non-profit companies from the file and firms
  that dont meet the 51 ownership qualifier

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15 million small businesses and 4.3 million
socio-economic classifications contribute to
the depth of our supplier diversity database
Achieve Supplier Diversity Goals
Classification File Counts

• Small Business 15,826,840
• Women 3,290,247
• Minority 703,834
• Hispanic 193,957
• Asian 134,893
• African American/Black 114,329
• Native American 22,822
• Indian Sub-Continent 21,472
• Minority/Type Not Specified 215,268
• Veteran (Includes Vietnam and Service
  Disabled 177,344
• Small Disadvantaged Business 20,554
• HUBZones 12,967
• 8(a) 16,134
• Historically Black Colleges/Minority
  Institutions 216
• Labor Surplus Areas 6,640,706

February 2005
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Frequent updates to our supplier diversity
database helps to ensure the timeliness of your
information
Achieve Supplier Diversity Goals

• Daily - the DB database is leveraged to monitor
  ownership changes, business moves, business
  failures, within the supplier diversity file
• Monthly - randomly selected data provided by
  third-party sources is confirmed for accuracy and
  all SBA ProNet is updated monthly
• Bi-annually - diversity indicators are updated
• Annually - all third-party source files are
  refreshed

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Every diverse record is defined by the level of
confirmation so you can have confidence in what
you are reporting
Achieve Supplier Diversity Goals

• Certified records are confirmed by government and
  third-party certification agencies, including
  (when available) certification source, source
  level code (federal, national, regional, county
  and local), certification effective date,
  expiration date, certification number, and date
  received by DB.
• Collected records are non-certified records
  collected from a variety of sources including
  membership organizations, directories, calls to
  DB, etc.
• Verified records are certified and collected
  records that have been confirmed through DB call
  center campaigns

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An established process - that only DB offers -
helps you resolve any classification conflicts
that arise
Achieve Supplier Diversity Goals
3A
1
2
4
3B
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You have total visibility of the diversity in
your supplier portfolio since our data collection
expertise gathers all your spend from multiple
sources
Achieve Supplier Diversity Goals
Veteran.5
Labor Surplus17
Small Business21
Non-Diversified58
Women2
Minority1.5
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D-U-N-S Numbers track diversity classifications
so you can understand how your diverse suppliers
are individually classified
Achieve Supplier Diversity Goals
D-U-N-S Number Supplier Classification
00-000-0000 Advance Energy Tech
Small Business 00-000-0000 Dianne's
Gourmet Desserts Women Owned
00-000-0000 Marquez Produce Inc
Minority Owned 00-000-0000 International
Plastics Inc Veteran Owned
00-000-0000 Bakery Equipment Svc
Service Disabled Veteran Owned
00-000-0000 Kettle Valley Dried Fruit Co
Small Disadvantaged 00-000-0000 Electro
Medical Equipment 8(A) Designation
00-000-0000 Ross Commercial Services
HUBZone Certified 00-000-0000 Florida AM
University Historically Black
College 00-000-0000 Schwartz Paper, Inc
Labor Surplus
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Entity Matching process matches classifications
with amount of spend so you determine how much
you are spending with diverse suppliers
Achieve Supplier Diversity Goals
D-U-N-S Number Supplier Classification
Amount of Spend 00-000-0000 Advance
Energy Tech Small Business 340,000
00-000-0000 Dianne's Gourmet Desserts
Women Owned 100,021 00-000-0000 Marquez
Produce Inc Minority
Owned 195,771 00-000-0000 International
Plastics Inc Veteran
Owned 101,039 00-000-0000 Bakery Equipment
Svc Service Disabled Veteran
Owned 87,634 00-000-0000 Kettle Valley Dried
Fruit Co Small Disadvantaged 85,232
00-000-0000 Electro Medical Equipment
8(A) Designation 32,233 00-000-0000 Ross
Commercial Services HUBZone
Certified 15,443 00-000-0000 Florida AM
University Historically Black
College 11,461 00-000-0000 Schwartz Paper,
Inc Labor Surplus 9,781
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You can manage your supplier portfolio more
efficientlyfor example, you receive the summary
level needed for 294/295 federal reporting
Achieve Supplier Diversity Goals
Classification
Summary of Spend Percent Small
Business 932,340,006 24.54 Woman Owned
266,861,021 7.02 Minority Owned 76,847,771 2.0
2 Veteran Owned 26,478,634 0.70 Service
Disabled Veteran Owned 8,385,232 0.22 Small
Disadvantaged 12,800,233 0.34 8(A)
Designation 11,199,461 0.29 HUBZone
Certified 9,186,781 0.24 Historically Black
Colleges 919,608 0.02 Labor Surplus
37,450,039 0.99
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Finally, once you have enhanced your supplier
diversity information, it can be integrated
directly into your systems to enable
Achieve Supplier Diversity Goals
Enhanced Supplier Diversity Information
Firewall
Legacy
SourcingSoftware
SAP
Oracle
PeopleSoft
Larson
Access
Excel
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You can source for new diverse suppliers over the
Web by accessing the 4.3 million socio-economic
classifications in our supplier diversity database
Achieve Supplier Diversity Goals
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The UNSPSC, SIC or NAICS codes we collect on the
92 million businesses in our database help you
source by industry
Achieve Supplier Diversity Goals
NAICs
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The information we have on suppliers in over 200
countries helps you source by location
Achieve Supplier Diversity Goals
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Our Predictive Indicators signal the likelihood
of a supplier to either deteriorate or cease
operations so you can evaluate your suppliers
financial stability
Achieve Supplier Diversity Goals
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DB has become the most trusted source for
supplier diversity information so you can make
confident business decisions

• DBs Supplier Diversity Database is the most
  comprehensive source of supplier diversity
  socio-economic data in the marketplace
• Our DUNSRight quality assurance process for
  collecting and enhancing data, sets us apart from
  the competition
• Accuracy having the right information on the
  right business
• Completeness providing breadth and depth of
  data
• Timeliness making frequent updates to keep the
  information fresh
• When certification is not enough, DB can give
  you the insight needed to decide with confidence