9.13.11
CEO SERIES:
Redefining Your Value Proposition:
What are corporations seeking from their
suppliers today?
Redefining Your
Value Proposition
September 13, 2011
The Intersection of Performance
and Supplier Diversity
RGMA
Supplier Diversity Program
Design and Enhancement
Economic Opportunity Program
Development
Emerging Business Capacity
Building and Development
Strategic Alliance Facilitation
Established 1979
Senior Management Supplier
Diversity Briefings
© 2011 Copyright by RGMA
3
© 2010 by RGMA, Inc.
Convergence: Definition
“The act of approaching the
same point from different
directions; tend toward a
meeting or intersection”
The American Heritage Dictionary
© 2011 Copyright by RGMA
Convergence
• New, enlightened public sector leadership
• Private sector need for innovation
• Expanding pool of equity capital
• Exponential growth of savvy emerging CEOs
• Technology is leveling the playing field
• Growth of robust supplier diversity processes
© 2011 Copyright by RGMA
Creating New Growth Platforms
Donald Laurie, Yves Doz, and Claude Sheer
Harvard Business Review: May 2006
“Opportunities for building
new growth platforms
(NPGs) lie at the intersection
of a company’s actual or
potential capacity set, unmet
customer needs, and forces
of change in the broader
environment”
New Growth Platforms*
WHAT – Enablers (New or converging technologies,
regulatory pressure, and social change
WHERE – Customer problems (unmet, unserved or
latent customer needs leading to markets
HOW – Capabilities (identifying and assembling
capabilities, intellectual property, know-how,
competencies, processes and leveragable assets)
*Creating New Growth Platforms
Donald Laurie, Yves Doz, and Claude Sheer
Harvard Business Review: May 2006
How can
New
Growth
we make
Platform
a difference?
What trends
would enable
markets to grow
faster Domain
or bigger?
New
Where can
we
make
Hunting
a Ground
difference?
or
Opportunity
Space
*Creating New Growth Platforms
Donald Laurie, Yves Doz, and Claude Sheer
Harvard Business Review: May 2006
How Corporations
View Your
Value Proposition
A Generic Value Proposition will Land Your Business Here
This is a very tough place to
run a business!
Core products/
services
Non-Core
products/ services
Multiple
Suppliers
…What commodities
are in this box?
© 2011 Copyright by RGMA
Few Suppliers
Only a Compelling
Value Proposition
Will Get You Here
Core products/
services
Strategic
Partner
Non-Core
products/ services
Multiple
Suppliers
© 2011 Copyright by RGMA
Few Suppliers
What Are Corporations
Seeking from Their
Suppliers Today?
Redefining Your Value Proposition
Panelists
Ms. Debra Jennings-Johnson
Director Supplier Diversity
BP America Inc.
Mr. Dwain L. Carver
Associate Director, Corporate Supplier Diversity
The Procter & Gamble Company
Panel Discussion
© 2010 Copyright by RGMA
Redefining Your Value
Proposition
ICIC Presentation
September 13, 2011
Dwain Carver
Associate Director
Corporate Supplier Diversity
Procter & Gamble

P&G’s 50 leadership brands are some of the world’s most
well known household names. 24 of these 50 brands each
generate more than one billion dollars in annual sales.

P&G ‘s Purpose Inspired Growth Strategy - Touching and
improving more consumers’ lives in more parts of the
world…more completely. Today P&G brands touch the
lives of over four billion people around the world everyday.
Our target is five billion people per day by 2015.

Supplier Diversity ties to our Purpose

P&G Diversity
•
Our supplier base should reflect the diversity we value and
expect to see in P&G as a company. We believe in having
employees and business partners who reflect the markets and
consumers we serve.
Why Supplier Diversity is a Priority at P&G



Business strategy we have focused on since the mid1970’s
To fulfill our Purpose and execute our growth strategy
effectively is fueled by innovation which requires diversity.
Investing with diverse suppliers:
•
•
•
Strengthens our innovation and go-to-market capabilities.
Major employers of women and minorities
Touch and improve the lives of men and women who work in
these companies and through them, their families and the
communities in which they live and work.
 Work with majority owned and international
supply partners to do business with diverse
suppliers to expand the impact of our Supplier
Diversity strategy.
Bob McDonald
Chairman of the Board, President &
Chief Executive Officer
Supplier Selection Process

Determine Internal Business Needs (Best Total Value)

Best Total Value Criteria
•
•
•
•
•
•
•
Innovation
Price
Technical capability & Technology evolution
Deliver on required timing
Supplier Diversity spending opportunities
Supplier Relationships
Supply Chain

Review Industry Analysis of the Supply Base

Determine the supply base that best matches the
internal business needs
Redefining the Value Proposition
Re-defining Your Value Proposition
Debra Jennings-Johnson
September 13, 2011
BP America – Who we are…
Wind
Exploration
and production
Solar
Refining and
Marketing
National Minority Supplier Development Council
October, 2010
20
Supplier Diversity
Commitment
“BP is committed to increasing diversity in our supply chain. Consistent
with BP brand values, we seek to create sustainable progress in
local communities by providing a high level of opportunity for diverse
suppliers to participate in our business.”
Chairman & President BP America, Inc.
Supplier Diversity
Selection Process
•BP goes to market based on Business Needs
•Safety and Reliability are 1-2-3- priorities
•Approved vendor list and Supplier Quality Management
•Contracts are master service agreements, which can be
utilized across the segments without being re-negotiated
Supplier Diversity 2010 Year End
Market Sector Diverse Spend
Production Operations (E&P)
Logistics
Gum Restoration
Drilling / Completion & Wells (E&P)
H.R. Services
Unknown Commodity
Maintenance Services
Manufacturing Site - Capital Project Services
Property Management
Manufacturing Site - Engineered Equipment &
Facilities Engineering & Construction (E&P)
Retail Assets
Seismic (E&P)
Finance Services
Marketing Services
Manufacturing Operations
Compliance & Environmental Products And
I.T. Products & Services
Technology Research & Development Services
Travel And Meeting Products And Services
Alternative Energy Supply Markets
Grand Total
Market Sector Diversity Spend
Diversity
($MM)
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.0
Production Operations (E&P)
Logistics
Gom Restoration
Drilling / Completion &…
H.R. Services
Unknown Commodity
Maintenance Services
Manufacturing Site -…
Property Management
Manufacturing Site -…
Facilities Engineering &…
Retail Assets
Seismic (E&P)
Finance Services
Marketing Services
Manufacturing Operations
Compliance &…
I.T. Products & Services
Technology Research &…
Travel And Meeting…
Alternative Energy Supply…
Packaging
Market Sector
0
23
Thank You
ralphmoore@rgma.com
www.rgma.com
9.13.11
Q&A