Reconnecting the disconnected
Beverly Kuykendall

Something is missing! Calling all thinkers!  We need to develop a workable process to include small businesses efficiently and profitably in corporate procurement supply chains. Why does the solution seem to be so elusive?  So many times we can think of a million reasons why something cannot be done and only one or two reasons why something should be done. Let’s focus on what can be done.  I challenge all of us to spend more of our time developing solutions.

How can small business be included in a supply chain built on long term relationships and a proven track record?  How do large businesses meet the challenge of industry consolidation and the need to combine huge requirements in order to take advantage of volume discounts?  How does large business achieve economies of scale and meet small business requirements?   

We know the dilemma.  Many times, Small Business goals are not being achieved in a win-win environment.  Somebody’s losing.  Either the large business is cutting out an existing partner to give the business to small business or the small business is taking the business at a loss to get its foot in the door. This is NOT a sustainable business model.

Small firms seeking opportunities with large corporate 500 or 1000 firms need a business case that makes good, sound, financial sense.  To think otherwise, to believe programs  built on anything other than sound business strategy and execution will have longevity or even produce profits just doesn’t make good business sense for Service Disabled Veteran-Owned Small Businesses or any other small business.

Large, publicly owned firms publish annual sales projections. Imagine, if we as small businesses reviewed these sales projections and came up with a plan to actually assist the large business achieve sales projections!  Now that is a sound business strategy.  Imagine, if we as small businesses reviewed the strategic plan of a larger company and developed a plan in concert with that strategy to enhance its effectiveness by increasing market share or create a new market.  Wow!

Small Business is a political "hot button". Small Business advocacy groups are numerous and highly vocal. From Service Disabled Veterans to Small Disadvantaged Businesses to Historically Underutilized Business Zones, these firms know that the high stakes games of Government and corporate spending function in a hotly contested business environment.

High level corporate and government brass presents sophisticated work flow charts and theories to describe strong commitments to Small Business.
Yet, not many firms can boast a small business program with a positive effect on the bottom line.  If this was the case, small business diversity professionals would be in high demand.  They would have funding for staff and programs to enhance supply chain diversity within those organizations.  Instead, there are usually one or two people with a tremendous workload, not much support and a voice mail system that they are hard pressed to keep clear.  They are typically disconnected from line positions, procurement decisions and sales initiatives.

There is a disconnect between the corporate and government commitment to small business, a sound, workable process and the number and dollar amount of contracts awarded to Service Disabled Veteran-Owned Small Businesses; and indeed all categories of small businesses.

However, a few large business primes are developing systems and programs to handle this dilemma.  These firms are proactive.  They are rolling-up their shirt sleeves and putting ingenuity to work to meet the challenge of including small businesses in response to corporate and government customer requirements.  They are mentoring and providing developmental assistance to small business firms to enhance capabilities.  They are teaming and  combining core competencies for both government and non-government projects.  

The not so visible benefit of investing in small business…once large business firms experience the value of small business teaming in the federal sector, they begin to expand the idea into non-government business sectors as well.  For example, The Small Business Strategic Alliance Program in place at Tremco, Inc. a large business General Construction Services and Facility Asset Management firm based in Beachwood, Ohio has worked so well, that Tremco is now expanding the program into corporate, educational, healthcare and architectural markets.  They are proactively teaming with small businesses involved in the Tremco Small Business Program, with a proven track record to go after vertical markets.  The Tremco Program includes small businesses as customer solutions.  If the customer has diversity or small business goals, Tremco is able to meet these requirements through existing relationships with small business.   One main requirement, the small business partner MUST be proficient in some aspect of construction and facilities maintenance.  They MUST have a core competency that is essential to performance on one or several contracts.  Under these circumstances, it is possible for the small business to be either a prime or a subcontractor. Everybody wins. Disconnect solved!   

SDVOBs! Please continue to be on the lookout for large business partners beyond the government marketplace.  Research the websites of large businesses to determine how they work with SDVOBs and other small businesses.  Do you qualify for any other categories?  Even if they have not yet started to reach out to Veteran-Owned businesses, the overture has certainly been made to small businesses. SDVOBs are small businesses.   

 The National Minority Supplier Development Business Opportunity Conference takes place October 29-November 1 in San Diego, CA. The anchor hotel is the Grand Hyatt.  Go to the website www.nmsdc.org  and review the list of exhibitors for this 2006 conference. Impressive!   They are expecting 7000 participants.  The list of large business corporate exhibitors is available for your review from the website.  If you want to connect with large businesses who are focused on small business relationships, this is the place!