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THE SECRET SAUCE


Corporations were interested in giving a helping hand to minority-owned companies - not a hand-out - in the early years of supplier diversity. They were willing to help them get in the door and to reach a certain level, but they were not guaranteeing a contract for life. In order to get a contract for life, your company had to out-perform everybody else that was performing the same service. Once the helping hand had been extended and you took it, you had to quickly transition to leveraging that helping hand to get new business with new customers.
Large companies are very judicious when awarding contracts to minority-owned and/or woman-owned businesses because of what is known as a “pass through” or “front business”. Majority owned companies would find someone diverse – it could be a woman, a Hispanic, African American, an Asian, etc., or in today’s world, a gay, lesbian, or veteran and use that person as a “front” to have their company qualify as a minority-owned busine…

Does Size Really Matter?

Does size really matter? Yep, the question is “does the size of your company really matter regarding getting contracts with the big boys”? The short answer is “yes”. The longer answer is “maybe”, if you're talking about the six, seven, eight, nine, ten figure contracts. If it's a large  manufacturing plant for example, you might be able to get that larger contract servicing one location, but more than likely for these types of contracts with the big boys, you're going to be covering multiple sites, multiple locations, multiple business units, and so you have the issue of what is reasonable for your company to handle. Ask yourself “would they give a $10 million contract to a company that only has one, two or three employees”? What if they thought you could ramp up and service the contract? Maybe, but more than likely that's going to be a push. You'd have to work really hard to convince them that you could handle the job with only a staff of three - even though the s…
Is Your Company the Fighter Big Corporations Need?

The questions you should ask yourself before seeking to form Strategic Partnerships with large corporations are: Do I have a solution that a corporation would say is valuable to them? Do I sell my products and services the way my target corporate client buys it?Do I have a solution that my customer - a corporate client - would say they value, and am I offering my product and service the way they buy it - not am I selling it the way I want to sell it? Am I offering it the way they buy it; the way they go to market to get it? To further expound on these questions, also consider the following: “Can Idemonstrate that I am the exception and I can do better than what my competition is doing?”
Is your company the fighter big corporations need? What do I mean by that you may ask? This really and truly falls under the category of if you continue to do what you've always done, then you're going to get what you've always gotten.
Big co…

Essential Factors to Consider Before Pursuing Strategic Alliances with Large Corporations

You must be committed to benchmarking and finding out what the best companies in the globe do in their supply chain before venturing into a Strategic Alliance.  You also must determine if your target organization’s supply chain or purchasing department is involved in strategic planning so that they can get the maximum benefit of understanding what they buy, how they buy it, where they buy, and that they are buying it at better than competitive levels.
Many companies as recently as 5 -10 years ago set goals of purchasing 3% of their annual goods and services budget from  minority-owned businesses, and 2.5% for women-owned businesses. We lately have seen numbers as high as 11-15% for both.  States like California USA have set goals as high as 50% for their public utilities of which large corporations such as AT&T and PG&E are included.
Women-owned business participation in corporate contracting is advancing at a much faster rate than minority participation. Women initially were i…