The Least Traveled Road
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SOLSO
URGES DOUBLING DIVERSE SUPPLIER SPENDING GOAL
By Blair Claflin
Global Diversity Communications Manager
Cummins
CEO Tim Solso challenged participants at the 4th Annual Diversity
Procurement Summit to fully capitalize on anticipated growth within the
Company to double their previous goal of reaching $500 million in
spending with diverse suppliers by 2010.
"Don't talk to me about $500
million. Talk to me about $1 billion," Solso told the audience of more
than 100 during the Company Summit last Tuesday at the Cummins Engine Plant
in Columbus, Ind.
"This is hard work. This is not easy," Solso added. But with more than
a dozen new facilities under construction and new products coming on line,
Solso said Cummins has an opportunity to significantly increase spending
with minority-and women-owned businesses over the next two or three years.
"Not only is this the right business decision, it's the right decision for
our country," said Solso, who maintains increasing such spending can
build wealth in key segments of society, ultimately reducing poverty, a
major factor in a host of social issues.
The Summit drew a diverse crowd of Cummins' employees, ranging from
purchasing managers to Solso, Vice President of Global Purchasing &
Manufacturing Support Ignacio Garcia and Executive Director of Global
Diversity Lisa Gutierrez.
In addition, Harriet Michel, president of the National Minority Supplier
Development Council (NMSDC),
delivered the keynote speech. She
was joined by the regional presidents of her organization from Tennessee,
Kentucky, Indiana, Michigan, Minnesota and Wisconsin. The NMSDC is one
of the country's leading minority business development organizations that
links over 16,000 minority suppliers with more than 3,500 corporate members
(such as Cummins) and 39 regional councils nationwide.
Solso's challenge comes at a time of tremendous growth in spending with
diverse suppliers at Cummins. The Company set a record in 2007,
increasing spending with minority business owners by more than 80 percent.
In 2006, Cummins spent nearly $212 million with minority suppliers. A
year later, spending topped $387 million -- significantly over the goal of
$325 million established for 2007.
By
comparison, the Company spent $82.5 million with minority suppliers as
recently as 2002.
More than 30 Cummins employees were recognized at the Summit for their
efforts to reach out to and develop diverse suppliers, contributing to the
record year in 2007.
Gordon M. Fykes, Cummins Director of Diversity Procurement, said every
business unit exceeded its goal for diverse supplier spending in 2007.
"It's great to see every business unit on board," he said.
But Fykes said exceeding $1billion by 2010 will require an unprecedented
commitment from all Cummins employees involved with the design, procurement,
and use of products and services purchased from suppliers -- not just
purchasing personnel.
Michel, who recalled her first trip as a young foundation director to
Columbus to meet legendary Cummins CEO J. Irwin Miller, told the Summit
that investing in minority suppliers will ultimately pay off for any
company. She said helping develop a minority supplier leads to
increased competition, which in turn leads to better service and lower
prices. In addition, it can help make for healthier communities.
"I believe the answer to a lot of our problems in society lies in the
economic development of every part of society," said Michel, who urged
Cummins and their respective business units to work with her regional
presidents to open up streams of opportunities to identify qualified
minority suppliers to drive economic inclusion.
Fykes said the opportunity for the Cummins Diversity Procurement Council to
meet with the regional NMSDC Presidents on Monday should be invaluable as
the Company moves forward to develop strategies to meet Solso's challenge.
