RetailCo: Inclusive Supply Chain Task 2 Stakeholder interview notes The following is a collection of notes and quotes from various stakeholder interviews. Use these notes to develop a summary of challenges & opportunities, which will be presented to the RetailCo leader team as part of a larger client update. Procurement executives: Interview #1: John Jenkins, Chief Procurement Officer, RetailCo Havent actively engaged with MWBEs to increase supplier diversity, but believe it to be important from both a business and social perspective Wants to improve outreach, not just be reactive to the proposals that bubble up to his inbox for approval, which are typically from large companies Believes their procurement standards have performed well to optimize inventory across all locations and minimize supply chain risk, but exclude smaller business MWBE or otherwise Still has some preconceived notions that increasing supplier diversity comes with risk This isnt going to work just by reaching out to MWBEs and hoping success will come; we are going to need to lean in and change our procurement standards to be fit for purpose. Im willing and excited to do it, but we need to build a model that balances risk and reward. Interview #2: Albert McFarland, Director of Procurement, RetailCo Procurement guidelines at RetailCo optimize for limiting risk and ensuring inventory currently no focus on supplier diversity (nor tracking) Heard about the BCG project and looked back at recent pitches and searched for the individuals involved on LinkedIn noticed that very few came from MWBEs MWBE pitches seemed to be invited to meetings less due to higher concern over financing From what I could see from the documentation, there wasnt really any difference in the product quality based on who the owner was it just seemed to be that we were being approached (or referred to) by MWBEs much less than Id have expected, and those that did come seemed to struggle a little more with financing. I think if we want to increase MWBE % in our supplier base, we need to solve those things. Interview #3: Stephanie Hernandez, Procurement Executive, RetailerA Most requests that came across her desk were from larger, non-minority owned businesses - they did not actively screen for supplier diversity In retrospect, noticed that supply chain was not diverse, and so began to seek out MWBEs Found a common struggle was financing, and so developed a new model to help MWBEs scale up their relationship with RetailerA Inclusive supply chain program has been recognized, winning multiple awards and driving financial returns It was definitely a challenge and a different type of risk to procure from smaller businesses that cannot supply the whole network of stores, so we had to develop a new, localized model to support MWBEs. Interview #4: Natalie Hellman, Procurement Executive, RetailerB Started tracking demographic information from suppliers (incl. pitches) and noticed that a certain buyer never invited MWBE owners to the next stage of process Addressed issue and began investing in unconscious bias training for all staff Currently trying to decide how to help MWBEs overcome the financing / minimum order challenge We found that MWBEs in particular had a tough time meeting our minimum order requirements, and it was almost always because they struggled to get the financing. We are currently trying to determine whether to lower the minimum order requirements and/or to help MWBEs with financing. Interview #5: Lindsey Smith, Procurement Executive, RetailerC Very prejudiced based on one previous experience. Acknowledged that many contracts fail regardless of the partner company demographics, but not very willing to focus on inclusive supply chain initiatives We did business with an MWBE a couple of years back. They promised us the world, assured us that theyd be a great partner, but things kind of imploded. It was unfortunate, really. MBWE Owners/Leaders: Interview #6: Hayet King, Owner, Clothing manufacturer Biggest challenge seems to be networking believes if she can get in front of the right people, the products will sell themselves Has been successful in getting into two of the smaller national chains, but no luck in securing meetings with larger chains Well financed based on successful relationships with smaller national chains and direct-to-consumer business I just dont know where to start. Our stuff is awesome, well priced, customers love it, but I know that the network is huge in getting into big box stores, and I just dont have a great network. Interview #7: Samaya Housseini, Owner, Candle & Incense manufacturer Relentless on the phone and email trying to get meetings with procurement teams at large retailers Has received responses from a couple, but reluctant to fly to HQ to meet with the buyers I know our products are good, in fact, much better than what RetailCo is currently selling, but I cant really fly to the middle of nowhere for a 20 minute meeting with a junior buyer. Im trying to see if they can meet via. video call, but they seem pretty rigid. Ill end up having to go, but with a business to run, three small kids at home, and a partner who works long days also, it is tough. Interview #8: Jarell Howell, CRO, Soft drinks manufacturer Lots of interest from all three retailers that they have got in front of, but couldnt secure financing required to deliver Good standing with their current credit line at the bank, but bank is not willing to increase, even with letters of intent from retailer (though they will try again now that they have letters from 3 retailers) We arent able to commit to the minimum order quantity that many of the big retailers want we just dont have the working capital. Banks arent willing to increase our credit line just yet, think we are growing too fast and dont have enough experience. Interview #9: Andy Bowman, Owner, Party Goods manufacturer Had a very negative experience with more than one retailer felt prejudiced because of where he is from, the color of his skin, or both Says that a colleague of his from business school was able to secure a non-traditional agreement with the company, but the company were unwilling to bend at all with him I dont say this lightly, but it felt that we had to clear a bar that was a lot higher than others. I personally know other business owners who were given a much easier time, softer requirements, but the procurement team that we spoke with were not willing to make the same concessions to us as others.