Establishing a Supplier
Diversity Program
Jamie Green, MBA, CMRP
Strategic Sourcing Manager
Supply Chain Management
NYU Langone Medical Center
New York, NY
Establishing a Supplier Diversity Program
Organization Background
NYU Langone Medical Center is a world-class, patient-centered, integrated, academic medical center and is one of the nation's
premier centers for excellence in clinical care, biomedical research and medical education. NYULMC is located in the heart of
Manhattan, is composed of four hospitals – Tisch Hospital, its flagship acute care facility; Rusk Rehabilitation; the Hospital for Joint
Diseases, one of only five hospitals in the nation dedicated to orthopaedics and rheumatology; and Hassenfeld Children’s Hospital, a
comprehensive pediatric hospital supporting a full array of children's health services across the medical center – plus the NYU School
of Medicine, which since 1841 has trained thousands of physicians and scientists who have helped to shape the course of medical
history.
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Four Hospitals: Tisch, Rusk, HJD and Hassenfeld
1,065 Beds and 65 O.R.’s
$1.7 Billion of Spend (Clinical, Indirect and Research)
No. 1 in Total Licensing Revenue Received (US Universities)
1,100 FGP’s; 2,135 AP’s and 2,325 RN/ANP’s
Faculty: 4,905 (inclusive of FT, PT, Voluntary and Endowed Profs)
Grant Funding: $260.4M (inclusive of Fed/Non-Fed (ARRA), CR)
Establishing a Supplier Diversity Program
Organizational Structure
Criteria for success
• Executive Leadership
• New Program Foundation
• Establishing Goals
• U.S. Federal Government Contracts
• Supplier Certification
• Diversity Resources
• Mentoring
• Supplier Diversity Measurements
Establishing a Supplier Diversity Program
Executive Leadership
• Actively promote program
– Intranet, newspaper, etc.
• Monitor and measure results
– Report progress to senior management regularly
throughout the year
• Consequences / Rewards
– Recognition awards, annual review penalties
• Create a diversified team
Establishing a Supplier Diversity Program
New Program Foundation
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Mission Statement – Supplier Diversity Plan
Develop Coding System for Identifying
Supplier Ownership/Certification
Survey Existing Supplier Base – Categorize
Communication Plan
Develop Reporting (eSRS site – www.esrs.gov)
Network with corporations that have successful
Supplier Diversity Programs – good source is local
women and minority councils
Establishing a Supplier Diversity Program
Establishing Goals
• State “Good Faith” Effort Goals
• Institutional Strategic Goals by Fiscal Year
– Direct spend only
• Federal Goals for Subcontract Plans
– Specific agency requirements
– FAR 52.219-9
• Federal Goals for Subcontract Plans
Establishing a Supplier Diversity Program
Establishing Goals (cont’d)
Statutory Goals Established by Federal Executive Agencies
The federal government has the following statutory goals for small business
procurement:
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23% of prime contracts for small businesses;
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5% of prime and subcontracts for women-owned small businesses;
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5% of prime and subcontracts for small disadvantaged businesses;
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3% of prime and subcontracts for service-disabled veteran-owned small businesses;
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3% of prime subcontracts for HUBZone small businesses.
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Government-Wide Goals/Performance:
http://www.sba.gov/sites/default/files/files/FY12_Final_Scorecard_GovernmentWide_2013-06-20.pdf
Establishing a Supplier Diversity Program
U.S. Federal Government Contracts
• Federal Small Business Concern Program
– Small, small disadvantaged, woman-owned, HUB
Zone, veteran, service-disabled veteran, Historically
Black Colleges and Universities and Minority
Institutions
• Categories determined by Congress
• Reviewed by Small Business Administration for
compliance
• Strict monitoring and documentation requirements
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Individual Subcontract Reports (ISR) & Summary Subcontract Reports (SSR)
Establishing a Supplier Diversity Program
Supplier Certification
• Certification through SBA:
– Small Disadvantaged Business
– HUBZone
• Self-Certifications:
– Small
– Woman-Owned
– American Veteran Owned
– American Vet, Service Disabled
– Historically Black Colleges and Universities and Minority
Institutions
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DBEs are being certified outside of the U.S. by WE Connect International and the NMSDCallied organizations of Global Link
Establishing a Supplier Diversity Program
Diversity Resources
• Central Contractor Registration database (CCR)
• Small Business Administration (SBA)
• National Minority Supplier Development Council
(NMSDC)
• Women’s Business Enterprise National Council
(WBENC)
• National Veteran-Owned Business Association
(NaVOBa)
• State Office of Minority Business Administration
Establishing a Supplier Diversity Program
Mentoring
• Connect with a partner
– Work with a company that makes sense
• Develop strategy around opportunities
– Data mine and identify highest opportunity
categories
• Assist where possible
– Financial support, internal market share
expansion, etc.
Establishing a Supplier Diversity Program
Beginning Supplier Diversity
Program
Basic Supplier Diversity
Program
Traditional Supplier
Diversity Program
Advanced Supplier Diversity World Class Supplier Diversity
Process
Progress
Supplier Diversity at Director
level
Supplier Diversity Director is a
key resource for senior
management
Community Affaires or H.R. owns
the process
Part-time Supplier Diversity
Manager
Active full time Supplier
Diversity Manager
Sparse tracking
Senior management still isn't
engaged in the process
Little to no senior management CEO/Senior management
involvement
involvement
Senior management leadership
Nonexistent outreach
Tracking is focused on
customer reporting
Limited connection with
strategic sourcing
Supplier diversity is owned by
strategic sourcing
Minorities are prominent in
advertising, but minority owned
advertising agencies aren't used
Trade fair participation is a
photo opportunity for key
customers
No significant link to marketing
and brand strategy
No Supplier Diversity marketing
materials
Compliance-driven response
to customer requirements
Reporting is hampered by
inadequate technology
Senior mgmt doesn't understand
the value proposition
Perception exists that the
Most diverse vendors are
program is an expense, not an supplying non-essential
asset
commodities or services
Process aligned with strategic
sourcing
Accountability throughout the
Strong team of supplier diversity organization including senior
professionals
management
Supplier Diversity tools are
utilized throughout the
Buyer/key executive training
organization
Supplier Diversity has
specialized technology
Innovative tools such as alliances
and acquisitions drive program
growth
No S. D. budget
Few professional services
opportunities are available
Steering Committee is
comprised of senior executives
Integrated into global strategy
Don't attend M/WBE trade fairs
Loosely structured 2nd tier
program
Advanced 2nd tier program
2nd tier program is integrated
into sourcing strategy
Member or local/national
advocacy organizations
Innovative diverse supplier
development initiatives
Ability to measure the program's
contribution to market share and
shareholder's equity
Diverse suppliers included in
professional services and
outsourcing opportunities
The Supplier Diversity Director is
a key contributor to the
corporation's overall
management strategy
Active in local/national advocacy E-sourcing is used as a tool to
organizations
expand diverse spending
Supplier Diversity process is
Supplier diversity is aligned with equal in stature to workforce
marketing and sales
diversity
The Supplier Divesity Director is
a key contributor to the
corporation's overall
management strategy
Program has sufficient
resources
Jamie Green
Jamie.Green@nyumc.org
(212) 263-2708