2013 sblo training cargill-j taylor 6-19-13

2013 Minnesota SBLO Training

June 20, 2013

Hosted by Medtronic

“It Takes More Than the SBLO”

Cargill Overview

Supplier Diversity Commitment

At Cargill, we recognize we are a stronger company when

we tap the power of diversity. We have increased our

commitment to purchase from small business enterprises

and diverse businesses by providing an equal opportunity

to bid to meet our procurement needs. We want our

supplier base to reflect the communities in which our

employees and customers live and work.

We seek small and diverse suppliers who can provide

competitive pricing, quality products or services and

technical support for our businesses. We are also looking

for diverse suppliers who have the capacity to meet our

needs, and who can increase efficiency through

innovation, technology and low-cost sourcing.

For Cargill, small and diverse business is a strategic

business imperative, and it is, simply, good business.

Greg Page,

CEO and President

‹#›

© 2012 Cargill, Incorporated. All rights reserved.

Nourishing Ideas. Nourishing People.TM

Cargill’s Vision

Our purpose is to be the global

leader in nourishing people.

Our mission is to create

distinctive value.

Our approach is to be trustworthy,

creative and enterprising.

‹#›



Cargill touches lives in more ways than you’d imagine.

From formula that helps infants grow

to icing on birthday cakes

to eco-friendly foam in couches and

mattresses.

to zero-calorie sweetener in your coffee

to steaks at your favorite restaurant

‹#›



Cargill touches the world of business too.

From farmers to Fortune 500 companies.

Helping farmers optimize yields, store

crops and access the best markets

Formulating better-tasting recipes for

restaurants and packaged foods

Creating food ingredients that

promote health

Managing risk and stabilizing pricing

for farmers and corporate customers

Creating supply chains and shipping

products to over 6,000 ports worldwide

‹#›



Cargill fiscal year 2012 results

As of May 31, 2012 (U.S. dollars)

Earnings from continuing

operations $ 1.17 billion

Revenues $133.9 billion

Cash flow from operations $ 3.5 billion

‹#›



We buy, process and distribute grain, oilseeds and other commodities

to makers of food and animal nutrition products. We also provide crop

and livestock producers with products and services.

We provide food and beverage manufacturers, foodservice companies and retailers with high-quality ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems.

We provide our agricultural, food, financial and energy customers around the world with risk management and financial solutions.

We serve industrial users of energy, salt, starch and steel products.

We also develop and market sustainable products made from

agricultural feedstocks.

Cargill is composed of 75 businesses

organized around four major segments.

Agricultural

Food

Financial

Industrial

Tartan On-Boarding Document 8

L.A. Regional

Leader

APAC

Regional

Leader

Global CSS

COE

Manager

Global PM&S

Manager

Global Strategic

Sourcing

Leader

Julian Chase

HR Manager Controller NA Regional

Leader

EMEA

Regional

Leader

Global Strategic Sourcing

Tartan On-Boarding Document 9

NA Ingredients

Manager

Kim Conboy Business SS

Manager Team

NA4

Salt

Animal Nutrition

Business SS

Manager Team

NA2/Capital

Project

Corn Milling

Ag Horizon

Global Strategic

Sourcing

Leader

Julian Chase

Business SS

Manager Team NA1

Oilseed Refining

Cocoa & Chocolate

N.A CM&S

Manager

Kate

Westermeyer

N.A. Regional

Leader

Andrew Glass

Global Chemicals

Manager

Laurie

Chamberlin

Next Previous

North America Regional Leader Direct Reports

Business SS

Manager Team

NA5

Wichita Meat

Busninesses

N.A. PM&S

Manager

Mike Rizor

Global

Packaging

Manager

Brian Lansing

Cargill Supplier Diversity, Confidential

Five Elements of Cargill Strategic Sourcing

10

Define Need & Establish Team

Research & Diagnostic

Strategy Development

Strategy Implementation

Ongoing Value Management &

Strategy Refinement

• Project Charter

• Stakeholder List

• Internal Research

• External Research

• Cost Modeling

• Hypothesis Generation

• Identify Diverse

Businesses

• Hypothesis Testing (RFI)

• Strategy Development

• Implementation Roadmap

• Potential TGRC Review

• Determine Carve Out

Opportunity

• Market Testing (RFx)

• Negotiations

• Operating Model Changes

• Policy & Demand Changes

• Tracking & Measurements

• Coordinating 2nd Tier

Requirements

• Category Knowledge

• Strategy Refinement

• Category Performance Improvement

• Supplier Management

• Contract Management

• Quarterly Stakeholder Reviews

• Mentoring

Diverse

Suppliers

Where does Supplier Diversity fit?

• Meeting Cadence

• Status Report

• Name Supplier

Diversity Champion

Category Management

The objective of our small business / supplier diversity

program is to increase diverse spend by 7 to 10 percent

Contract with new suppliers

Actively search and qualify diverse suppliers prior to

RFP

Leverage partnerships and new technologies to locate

new small business and diverse suppliers…PTAC

NMSDC, WBENC & Cargill registration portal

Allocate a portion of spend specifically with

SB - MWBE

Determine the diverse suppliers best opportunity and scope within the RFP

parameters

Continue match-making sessions to better bench-

strength of the diverse suppliers

Develop 2nd tier customer requirements

Include 2nd tier language in new and revised contracts

Actively educate prime suppliers on CSS SD goals

Grow our existing SB -MWBEs and develop

sustainable partnerships

Explore opportunities with diversity suppliers based

on our long term objectives

Utilize our external relationships with

organizations such as MEDA to help develop

capacity for diverse suppliers

There are four pillars to Supplier Diversity

*SB = All Small Business Categories

Supplier Diversity Execution Process

Identify the up-coming sourcing opportunities

• SD meets with the Cargill Supplier Diversity Champions to review the diverse suppliers requirements

Using the tools and relationships to identify and source the right diverse suppliers

• Cargill Supplier Diversity Portal

• Partnerships with SBA, PTAC, MEDA, NMSDC, WBENC, WBDC, MMSDC, Industry Groups etc.

• Establish Symposium events to introduce diverse suppliers to Cargill

• Creating opportunities for the diverse supplier to engage with the sourcing specialist

Mentoring Relationship

• Assisting the diverse supplier with any questions concerning the Cargill sourcing process

• Engage the sourcing specialist and the small business or diverse supplier

• Provide feedback

Key Challenges and Opportunities

Rationalization of the Cargill Supply Base

• Engaging diverse suppliers that have the bench-strength and capacity to support Cargill in a large regional opportunity

• Encourage the development of partnerships with our primes and diverse suppliers

• Look for opportunities for diverse suppliers to form JV’s with other diverse suppliers

Global vs. Local Opportunities

• Explore opportunities where the diverse suppliers can participate in a 2nd tier space

• Mentor those diverse suppliers that have the skill sets to achieve the next level

Increasing our Percentage of Spend as required by the

Government

• Develop & execute the training and tools to understand our contractual requirements as a government supplier

• Outreach to small businesses

• Education of small businesses

Supplier Diversity Website

www.cargillsupplierdiversity.com

DIR Registration Portal

Powered By

SupplierGATEWAY

Questions

2013 sblo training cargill-j taylor 6-19-13

Business

Transcript of 2013 sblo training cargill-j taylor 6-19-13