There are companies that prove they are committed to supplier diversity, and the commitment is found in core values. That describes DTE Energy, which makes supplier diversity an important business process backed by a proactive initiative that provides equal access, mentoring and opportunities. You could even call the DTE Supplier Diversity Initiative aggressive because of its comprehensiveness.
DTE Energy supplies gas and electric utility services to Michigan residents and businesses. The company is also involved in energy related projects including producing biomass energy, developing major business lines for industrial development, development and management of energy related businesses and operation of DTE Coal Services. The diversity of operations gives DTE Energy a number of excellent opportunities to expand its supply chain diversity.
As proof of commitment to the program, their Supplier Diversity Initiative was expanded to incorporate a large number of business groups that include ethnic minority, women owned and government enterprises. Supplier diversity naturally includes African-Americans, Hispanic-Americans, Asians, Native-Americans, and women owned business enterprises(MWBEs). For DTE Energy it also includes small, veteran owned, service disabled, small disadvantaged and Hub Zone small businesses.
The current supplier diversity spend is already sizable, though there are plans to improve results. In 2011, the total Tier 1 spend on minority owned businesses was over $120 million and for women owned businesses it was almost $90 million. The total Tier 2 spend in 2011 for MWBEs was over $25 million. These numbers represent doing business with 100 minority owned businesses and 127 women owned businesses.
Reaching Out to Community Defines Program
Achieving this level of supplier diversity success requires careful planning and a coordinated effort to find, attract and mentor MWBEs and the other certified businesses mentioned. The company must train staff and develop methods for reaching out to the community and diverse suppliers.
The definition of the word ‘initiative’ is the power to take charge, act and follow through energetically and determinedly with a plan. Naming the program the Supplier Diversity Initiative gives a clue as to the many levels of effort put into it. These levels include corporate memberships on influential councils and associations, benchmarking, internal and external networking events, participation on and sponsorships of training and development programs, and a quality Supplier Diversity Mentoring Program.
The Supplier Diversity Initiative can be summarized in two words – networking and mentorship. DTE Energy belongs to a number of important organizations including the national and state Minority Supplier Development Councils (NMSDC and MMSDC), the Women Business Enterprise National Council (WBENC), theCenter for Empowerment & Economic Development (CEED), the National Association of Women Business Owners (NAWBO) and the Supplier Diversity Committee of the Edison Electric Institute (EEI).
DTE Energy also created the innovative Supplier Diversity External Advisory Group to serve as a liaison with the diverse suppliers and community. Comprised of members coming from the community, suppliers and DTE Energy, this group ensures that DTE Energy is always hearing the voice of its community and suppliers. Networking is also accomplished through participation in conferences and trade fairs and participation in training workshops and roundtables like the 2011 NMDSC National Conference and Trade Fair Education Session.
Partnerships and Alliances
However, it’s the Supplier Diversity Mentoring Program that leaves no doubt as to the commitment of DTE Energy to supplier diversity. Company business units complete supplier Diversity Training modules to better understand goals, success strategies and supplier mentoring. Mentored Suppliers chosen by the DTE Energy business units must meet certain criteria for eligibility. These suppliers bring a value proposition to DTE Energy through cost saving initiatives, ideas for growth, and quality performance. The program also identifies strategic partnerships and alliances.
This description gives you a good idea of DTE Energy’s extraordinary commitment to MWBEs and other certified businesses. There are many supplier diversity successes that DTE Energy can name with the most recent being Devon Facilities Management, Vendor Managed Solutions (materials management), Seel LLC (energy optimization weatherization projects), Nova Consultants (solar panel installations) and Corby (line clearance).
As the company’s Executive Summary states, “DTE Energy has continuous improvement plans to develop our diversity supply base. This is to send a clear message to the community that we serve that we are committed to fairness and sharing of business opportunities.” The supplier program may be aggressive, but in this case that’s an excellent way to be.