Why should I be a member of cnFMSDC?
It is the organization that all companies with world class Supplier Diversity companies belong to. If you have a new Supplier Diversity Program, we can help you enhance your program. Your company should and can use NMSDC to certify MBEs anywhere in the country at no additional cost.
Why is NMSDC Certification Important?
The basic concept of minority business development programs is to help MBEs get business. If a MBE wanted to do business with 50 major firms or government agencies, that MBE company might have to fill out 50 separate forms. Some of these take 8 hours or more to fill out and gather the necessary paperwork. It is often easier for a MBE not to fill out the paperwork and be considered a non-MBE firm.
Since the intent of MBE programs is to help MBE firms, paperwork reduction and time savings should be a major goal. It is waste of time and money for 50 MBE coordinators at their respective companies or government agencies to gather, process, analyze and make recommendations on the same company.
How is the problem solved? By using a resource used by over 3,000 major companies nationally, i.e., using the 38 regional minority-purchasing councils as a central certification point. These 38 RMPCs use standard, documented, consistent procedures.
State and local certifications all have differing criteria for MBE certification. Some do not require, while some have net worth or other limitations. There are a few that have different groups in their definitions, such as Hassidic Jews, Portuguese or Spain. DOT, SDB, Hub Zone and 8(a) certifications can include women or non-minority males in their definition of disadvantaged. NMSDC certification is consistent nationally. NMSDC certification can be a tremendous asset in helping MBE firms expand their business by being in a national network of corporate purchasers.
What Steps do I Take to Implement an MBE Program?
Policy - The Corporate MBE Policy should be endorsed by senior management
- MBE Legitimacy (Certification) - World Class Supplier Diversity Programs use the National Minority Supplier Development Council (NMSDC) to certify (verify) minority business ownership
- Provide Incentives - Positive efforts and results need to be rewarded and encouraged.
- Set Goals - Whether the attainment of a percentage of your annual budget is your goal or a percentage increase in purchases from MBEs, your goals should be measurable.
- Analyze Practices - Installing an MBE process usually means reviewing existing practices. Analyze present practices, with corresponding recommendations to ease MBE participation.
- Keep Score - Measure results regularly and determine if you reached your objectives. If not, determine what went wrong and revise plans.
- Recognize your Successes - A recognition program is one of the most effective tools for increasing MBE participation.
What is the Minority Business Development Process?
The goal is to increase business opportunities for minority owned businesses
and the volume of goods and services purchased from those businesses.
It is not a social program. It increases competition, lowering your costs and
increasing product quality.
Exclusion of business opportunities for groups that supply our revenue is
detrimental to our financial security.
The minority business development process must become an integral part
of your organization's business objectives.
What are the Advantages of a Minority Business Development Program?
- Company Benefits
It will increase competition and lower costs.
It can increase your minority market share.
Improves product quality.
- External Benefits
Creates jobs in the minority community.
Reduces the negative components of unemployment - crime and welfare.
Increases tax base.