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Meeting The Challenge
Despite a tough economy, companies must work with diverse businesses.
by Mary Welch
May 30, 2008
L
issa Owens, manager of Georgia-Pacific’s work force and diversity strategies, says it’s
getting more challenging for corporations to seek out and work with female-and minority-owned
businesses, but it is important to meet the challenge.
“Corporations are being asked to consolidate their suppliers in order to save money and get
better efficiencies,” she says. “Unfortunately, in the streamlining process many small businesses,
including minority-and female-owned ones, can get squeezed out. But, on the other hand, corporate
America has a responsibility to do business with these firms. So it is important to be more
creative on how we can try and do business with female and minority companies so that they succeed
and grow. It’s not an easy task.”
Georgia-Pacific has a “strong commitment to minority suppliers, and we explore ways so that
we can do more business with them and maintain our relationships over the years,” she says. “We
expect nothing different from those suppliers than we do our larger ones—we want a competitive
product or service and competitive quality of customer service. It’s the same standard for all our
suppliers.”
The private company does not release its supplier diversity numbers, but Owens says the
company has spent more than $700 million over the years with minority
suppliers.
“We want to be inclusive in our supply chains. If we weren't we might be losing
opportunities for some of the best suppliers. Most companies go to the guy who is well-known – the
same top 10 – and they don’t look for the smaller suppliers. That needs to be done more. And, our
customers are looking for us to identify these suppliers and work with them. It is important
internally and externally that we bring these suppliers in because they bring value to the table."
Owens says that being certified is the first step in doing business with the company.
Suppliers are then put into the company’s internal database, which is reviewed by category managers
and buyers when selecting suppliers to participate in procurement
activities.
The growth of Exhibits South, owned by Marlene Kelly, shows how the company brings in
suppliers and then helps them increase their business within Georgia-Pacific. Exhibits South has
been a supplier for the company for about 25 years and provided a niche product, trade show booths.
Owens heard about Kelly through the Women’s Business Enterprise National Council and then offered
her company a job in helping to develop a booth for a minority supplier trade show at which
Georgia-Pacific was an exhibitor. “I was so impressed that I told our consumer product division
about her, and it just snowballed.”
Snowballed, indeed. Since 2005, Georgia-Pacific has spent more than $1 million annually with
Exhibits South.
To succeed as a minority supplier, Owens says a company must “continue to grow with us by
offering innovative products and services on a consistent basis. Understand its core capabilities
and understand how they fit into Georgia-Pacific. A minority- or female-owned company should
especially understand its unique selling proposition and differentiate themselves. Know what you
can and can’t do. Make sure you can fill the company’s need well. If you can’t, don’t do it.
Mostly, be a valuable supplier.”
In order to further help female and minority suppliers, Georgia-Pacific participates in the
Governor’s Mentoring Protégé Program in which it works with minority-or female-owned companies on
business plans, strategic planning and positioning them for further
growth.
The company mentored Atlanta Peachtree Movers, an African-American-owned firm, and now is
working with WAWPUS, a female-owned contract manufacturer.
Georgia-Pacific’s involvement in supplier diversity is good for business, but it also gives you a “
good feeling,” Owens says. “Small businesses, especially minority-or female-owned, grow and tend to
give back to the community. They also tend to mentor even smaller companies. It’s actually a good
feeling to support these businesses and see them grow and succeed as a result of doing business
with them.”
