Transcript Document

Cummins Inc.
Corporate Diversity Procurement
June 16, 2015
Michelle L. Taylor, Diversity Procurement Leader
A Rich History Rooted in Innovation
Founded in 1919 by
Clessie Cummins and
W.G. Irwin
Pioneered the
development of
diesel engines
Promoted diesels as a
reliable source of power
Earned its first
profit in 1937
Cummins Inc.
2
J. Irwin Miller
A transformative and visionary leader
“While some still argue that business has
no social responsibility, we believe that
our survival in the very long run is as
dependent upon responsible citizenship in
our communities and in the society, as it is
on responsible technological, financial
and production performance.”
3
Complementary Businesses
Engine Business
Components
Business
Distribution
Business
Components
21%
Engine
Distribution
46%
21%
Power
Generation
12%
Cummins Inc. Power
Generation Business
2014 Revenue: $19.2 billion
4
Global
Presence
48,000
Employees
worldwide
190+
Countries
and territories
Cummins Inc.
Develop, design and
manufacture products on
6
continents
5
Cummins Diversity
Procurement (CDP)
Cummins Inc.
6
Corporate Diversity Procurement (CDP)Team
Michelle
Taylor
Diversity
Procurement
Leader
Lisa Hardin
Diversity
Procurement
Program
Cummins Inc.
Manager
Brian Sanders
Diversity
Procurement
Manager
Rhonda Evans
Administrative
Assistant
7
What is Diversity
Procurement at Cummins?
Diversity Procurement at
Cummins is the power of
leveraging diverse suppliers
through strategic sourcing
initiatives to meet the cost, quality
and delivery expectations of
stakeholders worldwide
Cummins Inc.
8
“It is the policy of Cummins Inc. that opportunity shall be given
to diverse businesses to participate as suppliers and
contractors to Cummins Inc. in their area of expertise. We
are committed to fostering business growth through outreach
efforts and supplier development.”
Tom Linebarger
Our Mission
Our Vision
Our mission is to strengthen the ability
To promote cross-cultural competencies across the
enterprise by leveraging global diverse supplier
relationships through strategic sourcing initiatives to
meet the cost, quality and delivery expectation of
stakeholders worldwide.
of Cummins business units to win at
critical hand-offs in the supply chain.
Cummins Inc.
9
Diversity Procurement . . .Driven by Diversity and Inclusion
MBE – Minority Owned
Enterprise
D - Disable
WBE – Women
Owned Enterprise
HUBZone – Historically
Underutilized Small
Business
What is Diversity
Procurement?
SDVOSB
– Service
Disabled Veteran Owned Small
Business
LGBTE– Lesbian,
Gay, Bisexual,
Transgender Enterprise
VOSB – Veteran
Owned Small Business
Cummins Inc.
10
Driven by Compliancy
Cummins Inc.
11
Corporate Diversity Procurement (CDP)
The CDP team currently manages $1.2B in U.S. diverse spend and $291M in ABO international diverse spend.
We also lead the Diversity Procurement initiative multinationally with the expectation to become global. We
validate & manage diverse spend for CMI business units & ABO; Engage, train and enforce corporate and
government diversity procurement policy.
Reporting
Communication
Administration
Business Unit Reports
Council
Membership
Education
&
Training
NMSDC (IPAC,
Global Links, MidStates MSDC, MSD
China, MSD UK,
Supply Nation)
CDP Training
(reporting, diverse
categories, business
case review, Supplier
Portal)
International Target
Reports
WBENC
Tier 1 Training for
reporting Tier 2
Stakeholder/Customer
Reports
WeConnect
Tier II Reports
Chrysler Reports
Government Reports
CDP Newsletter
Cummins Connect
Community
NGLCC
Partnership for
Supplier Diversity
Professionals
AIG
XBU & ABO
Engagement
Diversity Procurement
Councils
Diversity Procurement
Champions
Develop enterprisewide suppliers
Supplier Development
Opportunities
(Conferences &
Symposiums)
Intl’ Awareness
&
Involvement
Intl CDP Council
Define Regional
Diversity
Engagement of
regional resources
Leverage
international
council
memberships
Communicate
business case
(ABO)
NaVOBA
USHCC
Cummins Inc.
12
2014
Global
Diverse
Classifications
2015
Global
Diverse
Classifications
DIVERSE
CODES DESCRIPTION
DESCRIPTION
DIVERSE
CODES
Minority
Business
Enterprise
MBE MBE
Minority
Business
Enterprise
WBE
Women
Business
Enterprise
Woman
Business
Enterprise/Woman
Owned Small
WBE/WOSB
Business
SDVOSB
Service Disabled Veteran Owned Small Business
SDVOSB
Service
Disabled
Owned Small Business
VOSB
Veteran
OwnedVeteran
Small Business
VOSBLGBTE
LGBTE
HUBZone
Veteran
Owned
Business
Lesbian,
Gay,Small
Bisexual,
Transgender Enterprise
Lesbian,
Gay,
Bisexual,
Transgender
Enterprise
Historically Underutilized Small Business
HUBZone
SDB
SDB D
Historically
Underutilized
Small Business
Small Disadvantage
Business
Small
Disadvantage Business
Philanthropic
D
Disable
Disable
S
Philanthropic
Disable Owned Business
Disable
Business
SmallOwned
Business
S
M
M
I
Small
Business
Micro
Business
Micro
Business
International Diverse
I
**Cummins
track
and
**Cummins
track
and
record
U.S.
diverse
record
U.S.
diverse
spend
8 categories
spend
in in
8 categories
toward
CMI
$1B
toward
thethe
CMI
$1B
goal.
goal.
International Diverse
supplier.cummins.com
Cummins Inc.
13
Cummins Global Diversity Procurement
Global Diverse Categories
Cummins Inc.
14
Cummins Global Partners
Cummins has board/advisory council representation in these global affiliations.
Cummins Inc.
15
2014 Diversity Procurement Recognition
 Chrysler Supplier of the Year Award (2014)
 Reached $1.2B in Diverse Spend in 8 Diverse
Categories
 Diversity Inc Top 50 Companies for Diversity 2014
(#15 up from #19 in 2012)
 The UK receives “Corporation of the Year Award”
MSD-UK (2014)
 Cummins receives “Corporation of the Year Award”
Mid-States MSDC 2 years in a row
Cummins Inc.
16
Aligning Expectations…Diversity Procurement
 Internal Advocate
 External Development
 Access to Peer Companies
 Identifying Supply Chain Opportunities
Cummins Inc.
17
Aligning Expectations…Certified Diverse Supplier
 Relevant Value Proposition
– Understand & Bring VOC
 KPI Performance
 Targeted Engagement
– Building Value with CMI Partners (Tier 2 Exploration)
 Strategic Growth Plan
– Human, Financial, Global Integration
Cummins Inc.
18
Sustaining Your Supplier Presence with Cummins
Valuable Solutions
Winning Team
Leadership
Market Fit
Succession Plan
Customer Collaboration
Differentiator
Risk Management
19
Diversity Procurement Website
supplierdiversity.cummins.com
Cummins Inc.
20
Cummins Inc.
21