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.
‹#›
© 2012 Cargill, Incorporated. All rights reserved.
Nourishing Ideas. Nourishing People.TM
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
‹#›
© 2012 Cargill, Incorporated. All rights reserved.
Nourishing Ideas. Nourishing People.TM
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
‹#›
© 2012 Cargill, Incorporated. All rights reserved.
Nourishing Ideas. Nourishing People.TM
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
‹#›
© 2012 Cargill, Incorporated. All rights reserved.
Nourishing Ideas. Nourishing People.TM
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
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