For Future Growth, MWV is Interested in Suppliers with Innovative Solutions

The The supplier diversity program at MeadWestvaco (MWV) has grown dramatically since 2006. Regina Edwards, the Global Supply Chain Compliance Director, has had a first hand look at those changes and the new opportunities facing the space. As the next generation of strategy forms for the ninth largest exporter in the United States, there is no doubt that customer focused value creation will continue to dominate.

Shifting Focus

Edwards joined MWV five years ago, continuing a career in the compliance space. When she came to the firm, the compliance organization was being built from the ground up and included the contract value management platform, supplier approval process, corporate social responsibility focus, supplier diversity, learning and development and the budget area for supply chain. Rather than keeping such a varied blend of needs under one umbrella, in the past few years, MWV has shifted the focus to issues that enable the sourcing organization, such as trade compliance and sustainable sourcing strategy and initiatives.

“We are looking at opportunities to add value to the business through evaluating the way we are operating from an environmental, economic, and social perspective,” Edwards notes. This includes a re-evaluation of logistics providers, a new look at global sourcing, and further development of opportunities for competitive, solution-oriented minority and diverse suppliers to join the firm.

This re-evaluation builds on the work the group has been doing over the last few years in the diversity space. They began by benchmarking against other leading consumer packaging and packaged goods organizations, and getting commitment from the top. The team looked at their data, knowing that they would only be as successful as what they could measure, and found a way to get a clean baseline for aggressive growth targets.

This embracing of diversity was championed by senior leadership, who created a format for measuring success that funneled down to the individual level and attached accountabilities to compensation and the goals and objectives in the organization. Along with this internal message that diversity was serious and the development of a monthly supplier diversity scorecard, MWV aligned with groups like the VMSDC and NMSDC, and made it clear to those organizations that they wanted to be actively engaged in how those organizations were bringing value to the minority business community. “We really took some time to educate ourselves on what it would take to be successful,” notes Edwards.

Thinking Beyond The Now

One of the critical points for long term success for MWV is moving beyond providers that are focusing on the now. “I think we think we are it isn’t unique in the way we are looking at supplier diversity as a part of our business strategy, as a part of our innovation platform, and a part of our sustainability,” states Edwards. Suppliers, minority or otherwise, need to be able to bring solutions to tomorrow’s problems and problems the firm hasn’t yet recognized to really differentiate themselves.

Choosing The Right Partners

Of course, it’s not just a forward looking nature that drives MWV’s selection of the right partners. As Edwards looks at the space, she notes how important it is for the firm to be confident that their potential partner has the capability to perform, is qualified from a regulatory perspective, and is financially viable as an organization. Business creditworthiness has become a rising concern as the economy shifts and turns.

The goal is to find the sweet spot for both MWV and the supplier. “What can they do better than anyone else, and how does that benefit us?” asks Edwards. She finds that MWV doesn’t necessarily view supplier diversity as a very prescriptive initiative, but as finding a balance between needs and the supplier’s capabilities.

Success Stories

In terms of success stories, MWV can point to sustainability wins and particularly innovative supplier partners.

On the sustainability front, logistics has been a key area of focus. MWV has increased their EPA Smartway provider numbers from 88 in 2008 to over 90 in 2010. Logistics partners help optimize routes and re-evaluate equipment from a fuel economy perspective. All parties also maintain a vigilant eye on logistics compliance measures world-wide to ensure smooth import and export relations.

On the supplier side, Edwards practically glows when talking about MWV’s pallet supplier. “It’s not just a pallet supplier, it’s a solutions provider,” she says. The provider is not only taking the lead role in providing pallets, but also complementing MWV’s sustainability strategy with the pallet return program that they have put in place. They have reinforced options to MWV to re-use pallets, looked at pallet specifications and offered new suggestions around using plastic pallets or wooden pallets or changing pallet treatments, and become a really a valuable business partner.

Moving Forward

As Edwards looks to the future for her firm, she sees a more global/local focus and an emphasis on quality development of minority suppliers. Both of these initiatives begin close to home.

On the global/local front, she notes that MWV has always been fairly successful because they have sought to align with both traditional and non-traditional diverse groups from around the world -- but the world is coming closer. The firm recently participated in a session by the Hispanic Chamber of Commerce to introduce doing business in Brazil to the community in Richmond. Though it was a local presentation, such activities are highly attractive to MWV because it helps them plug into new communities of diverse suppliers.

In terms of supplier development, a key focus for 2011 is building capacity. Edwards notes that Tim Wright, who manages the firm’s supplier diversity area, is focusing on innovation, development, and growth. This focus is supported by MWV’s two year old mentorship program, organized through the University of Richmond, which sponsors executives from minority businesses for two weeks of intensive business skills building and networking with C-level leaders and professors from the University of Richmond.

To measure the success of programs like these, Edwards notes that MWV looks at the number of partners they grow each year. “We look at things like the amount of opportunities we are giving diverse suppliers to actually participate within our bid process. That opportunities area is very important, because it’s not just about how many win the business but that each time we go out, are we giving the opportunity for minority and women owned suppliers to participate,” she says.

For suppliers who want to learn more about opportunities at MWV, Edwards recommends talking with the team at the many conferences they attend or visiting www.MWV.com “About Us” section. It has a special section for supplier diversity and a place to register with the firm that feeds data directly into the procurement organization.

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