National Minority Supplier Development Council, Inc.

®

Annual Report 2009

Annual Report 2009

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Management Message NMSDC Programs and Activities Corporate Minority Supplier Development National Corporate Members Special Recognition National Network NMSDC Leadership

Mission
Providing a direct link between corporate America and minority-owned businesses is the primary objective of the National Minority Supplier Development Council, one of the country’s leading business membership organizations. It was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.

National Network
The NMSDC Network includes a national office in New York and 37 Regional Councils across the country. There are 3,500 corporate members throughout the network, including America’s top publicly-owned, privately-owned and foreign-owned companies as well as universities, hospitals and other buying institutions. The Regional Councils certify and match more than 16,000 minority-owned businesses with member corporations that want to purchase their goods and services.

Management Message

While the world economy began its recovery from the recession, NMSDC maintained its standing as one of the nation’s leading business membership organizations. In 2009, NMSDC-certified Asian, Black, Hispanic and Native American business owners supplied more than $100 billion in goods and services to our 3,500 corporate members. During the economic downturn, minority suppliers adjusted to the economic climate without compromising the value they bring to their corporate clients. And corporations got another glimpse of the agility and resiliency that make minority suppliers an important part of

“Minority suppliers meet and often exceed the exacting standards of our corporate members.”
Harriet R. Michel President, NMSDC

the corporate supply chain. As the year came to a close, the economic picture brightened. Through it all, our members upheld their commitment to NMSDC’s mission. As a group, NMSDC’s members continue to:
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create more opportunities for Asian, Black, Hispanic and Native American suppliers; advance minority supplier development through fact-sharing, advocacy and awareness; contribute to a richly-connected network geographically and by industry; share more current and accurate information and experience; promote best practices and ethical sourcing processes; increase professionalism of supplier diversity directors; advance innovative solutions to issues and challenges; receive cost-effective training to keep their organizations competitive; and utilize state-of-the-art tools and programs to help increase diversity in the supply chain.

As always, the synergy of hundreds of corporations working together provides the means to assure the success of our mutual goal that all Americans deserve a chance to fully participate in our nation’s economic progress.

Harriet R. Michel President National Minority Supplier Development Council

Harriet R. Michel President, NMSDC

Terry J. Lundgren Chairman of the Board, NMSDC Chairman, President and CEO Macy's, Inc.

Richard A. Hughes Vice Chairman, NMSDC Chief Purchasing Officer The Procter & Gamble Company

NMSDC Programs and Activities

NMSDC continued to grow in 2009. As the world economy continues to recover and business leaders once again see opportunities for growth, entrepreneurial innovation is prized. We are team players with innovative, job-creating certified minority-owned businesses that provide quality, efficient and customer-focused goods and services. Our highest priority is to propel these firms and their corporate customers into the global arena as the strongest of competitors. Our mission and strategy are to give Asian, Black, Hispanic and Native American suppliers a fair chance to compete. NMSDC is a corporate membership organization with 37 regional councils throughout the U.S. Thirty-one new national members joined in 2009, bring the total to 474. We have capable professional staff implementing and supporting our operations across the country. NMSDC certification is the most trusted and thorough examination of minority ownership status. Onsite visits and in-depth documentation reviews establish that more than 16,000 NMSDCcertified companies are at least 51% owned, operated and controlled by minority individuals – Asian, Black, Hispanic and Native American. For corporate members that purchased more than $100 billion in goods and services from these suppliers in 2009, the goal is to grow more.

“For decades we have benefited from the diversity of our supplier base. The progress made would not have been possible without the capabilities of the suppliers, the focus and commitment of many IBM’ers over the years, and importantly the support and impetus of the NMSDC.”
J o h n M . Pa t e r s o n Vice President and Chief Procurement Officer International Business Machines Corporation

Business Consortium Fund
The Business Consortium Fund (“BCF”) is a 501(c)(3) organization that offers a wide range of financing programs and business services to NMSDC-certified businesses that have supplier relationships with NMSDC national or local corporate members. BCF has long been a catalyst for the growth of MBEs, providing many types of financing products including contract and purchase order financing, working capital loans, term loans, equipment financing, accounts receivable financing, equipment leasing, long-term mezzanine debt financing as well as business and financial consulting services. Since its inception in 1986, BCF has facilitated in excess of $215.5 million in loans to more than 783 MBEs. More than 7,300 full-time jobs have been created. The BCF modified its Loan Guaranty and Participation Program so that its maximum exposure under any guaranty/participation is $1,125,000 (up from $750,000). This has allowed the BCF to support larger loans to MBEs. The BCF also entered into an alliance with a division of a national bank to provide accounts receivable financing to MBEs. This is the BCF’s first national financing alliance in its history. The BCF also introduced its first educational program in October 2009. The financial management seminar, entitled “Enriching the Bottom Line…A Small Business Roadmap,” was held in Dallas and received support from Chevron, Frito Lay, and J.C. Penney. The BCF plans to partner with regional councils and corporate members to hold these seminars throughout the country. The BCF also has two other subsidiaries—Triad Capital, which provides long-term mezzanine financing, and BCF Business and Financial Advisory Services, which provides business and financial consulting advice.

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At the NMSDC Conference in October, the BCF presented its annual Star Awards to United Parcel Service and the Dallas/Fort Worth Minority Supplier Development Council. Jethro Joseph, a retired executive from Chrysler, and Theo Fletcher, vice president, import compliance and supply chain for IBM, received President’s Special Appreciation Awards for outstanding leadership and contributions to the BCF and the minority business community.

COE Director Kanita D. Sandidge. “The corporations used NMSDC Best Practices and, through knowledge sharing and excellence in execution, improved their process by 11%. Minority businesses participating in the program benefitedfrom the module dynamics and methodology, and achieved a 5% improvement in their business operations. I’m looking forward to continuing to expand the program and replicating this success with all of our Regional Councils because this is a capacity-building opportunity for all of us.” The Georgia Minority Supplier Development Council and the New York and New Jersey Minority Supplier Development Council re-upped and are participating in a revenue sharing model. GMSDC has six corporations participating: Aflac; AT&T; The CocaCola Company; Georgia Power; Johnson Controls, Inc. (Co-Module Leader); and United Parcel Services, Inc. (Co-Module Leader); and 13 MBE participants. New York and New Jersey Minority Supplier Development Council has seven corporations participating: Adecco USA; Colgate-Palmolive Company; Ernst & Young LLP (Co-Module Leader); Johnson Controls (Co-Module Leader); Novartis Pharmaceuticals Corporation; Pfizer and Tyco International; and 11 MBEs participating. During 2009, the Tri-State Minority Supplier Development Council recruited enough corporations to launch a module and will do so in 2010.

Centers of Excellence
NMSDC Centers of Excellence (COE) is designed to enhance successful business relationships between member corporations and MBEs by strengthening corporate minority supplier development processes. It provides a structured environment for minority business development. As a forum for defining issues, gathering data on industry best practices, and establishing tools and processes to engage minority suppliers, Centers of Excellence provides many benefits. The South Central Ohio Minority Supplier Development Council (SCOMSDC) COE module, the first module after the pilots, celebrated a milestone on August 11, 2009—its commencement. Participating corporations included Cardinal Health, Cintas, Ethicon Endo-Surgery, Johnson Controls, Limited Brands, Nationwide, OhioHealth, Procter & Gamble and Toyota Motor Engineering & Manufacturing NA (Module Leader). Nineteen MBEs completed the module: CB Tech; CDO Technologies, Inc.; Coolant Control; Diversified Systems; Glovon & Clovon Engineering Consulting; Hooven-Dayton Corporation; KLN Logistics Corporation; LaVERDAD Marketing & Media; Miles-McClellan Construction Company, Inc.; Minority Alliance Capital; Odyssey Consulting Services; Penquin Painters; PROTEAM Staffing; River City Furniture; TechSoft Systems; Three Leaf Productions; Tri-State Consumer Suppliers; Trio Trucking and Valu-Tech. The module conducted 15 capacitybuilding activities. “The SCOMSDC team’s closeout results were very positive, paralleling those achieved during the pilot sessions—confirming the COE value proposition,” said

Corporate Plus®
NMSDC added five MBEs to its Corporate Plus® roster in 2009. Five MBEs discontinued their participation in the program, keeping the total at 90 National Corporate Plus® members in 41 business classifications, representing 29 Regional Councils. The program has 50 corporate sponsors. The new members are: CB Tech (Dublin, OH), a managed services company (facilities management; print and document management; pre-employment screening and background checks); Liberty Power Corporation (Fort Lauderdale, FL), an independent supplier of retail electricity; MW Logistics, LLC

NMSDC corporate members’ purchases from certified minority suppliers in 2009 exceeded $100 billion.

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(Dallas, TX), a transportation/logistics management services company; Trillion Communications Corporation (Bessemer, AL), a telecom equipment reseller, value-added reseller, warehousing and logistics company; and Urban Settlement Services, LLC (Pittsburgh, PA), a provider of real estate information to lenders (e.g., appraisals, title insurance, property records, home retention services). Thirty-eight Corporate Plus® members exhibited at the Business Opportunity Fair during the NMSDC Conference in New Orleans. A total of 67 Corporate Plus® members and Corporate Sponsors attended the Corporate Plus® Reception, where the new members received their program pins and banners. The Corporate Plus® Forum—now in its sixth year—serves as a learning opportunity. In 2009, the theme for the Forum was “What Only a Corporate Plus® CEO Can Do.” The Forum was designed and facilitated by Ralph G. Moore and Associates, a National Corporate Plus® member.

“Our supplier diversity program allows us to be more creative and innovative, opening new avenues for increasing and broadening our client base and for recruiting employees, as well as creating opportunities to achieve savings.”
J a m e s P. G o r m a n President and CEO Morgan Stanley

The national corporate members and Corporate Plus® Members participated in a survey during March and April, providing valuable feedback to improve the overall program. The project to provide an electronic Corporate Plus® Directory continues with a review of alternative mechanisms for delivery. This tool will be used as a resource for NMSDC national corporate members looking for MBEs that can handle national contracts. Membership in the Corporate Plus® program is limited to minority businesses that have successful experience performing national contracts, demonstrate the capacity to increase their national contracts, and receive a recommendation from an NMSDC national corporate member. The NMSDC Corporate Plus® Management Committee reviews recommendations and selects new members to the program upon approval by the NMSDC Executive Committee.

Learning Programs
NMSDC offers a variety of customized, innovative learning programs for minority supplier development professionals. One of the most-requested programs is the supplier diversity online class offered in partnership with Rutgers University. The 18-hour class is taught over a 12-week period by experienced supplier diversity professionals selected by NMSDC. The course provides essential tools through virtual learning; uses the newest and proven resource materials; has no time constraints, making it less intrusive on participants’ personal and professional schedules; lets participants earn 18 CEUs from the Institute for Supply Management; and awards a certificate of completion from NMSDC and Rutgers University. The 2009 courses were facilitated by Debra Jennings-Johnson, director of supplier diversity at BP America; Fred Lona, senior director, supplier diversity at Hilton Worldwide; and Nancy Swartout, manager, global supplier diversity at Exxon Mobil Corporation.

Minority Business Program Managers' Seminars
Each year, NMSDC hosts professional development seminars to provide the supplier diversity leaders at member corporations with examples of best practices in minority supplier development. The 2009 calendar included a national seminar and two one-and-a-half-day regional seminars.

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RGMA, Inc. also facilitated the regional seminars. Participants in all NMSDC seminars earn continuing education hours that may be applied toward Institute for Supply Management CPSM and C.P.M. recertification and/or A.P.P. re-accreditation program requirements.

The national seminar was held July 15-17 in Chicago. The theme for the 17th annual seminar was “Leading from the Future: Planting the Seeds of Recovery.” Nearly 200 supplier diversity professionals attended the session, which was facilitated by RGMA, Inc., one of the nation’s leading management consulting firms. The seminar opened with an address by NMSDC President Harriet R. Michel on the state of minority supplier development. The remainder of the general session featured various discussion topics, including aligning the minority supplier development value proposition with the future, MBE capacity building, and leveraging a compliance-based program to build a strategically-driven supplier diversity initiative. The second day was highlighted by think tank sessions led by the NMSDC Advanced Practices Group. Corporate presenters included directors of supplier diversity from AT&T, Darden, Dell, Eaton, GlaxoSmithKline, Johnson Controls, Johnson & Johnson, Kroger, Merck, PepsiCo, Raytheon, Shell, Sprint Nextel, Target, Toyota, the University of Chicago Medical Center, Verizon and Walgreen. The theme for the 2009 Minority Business Program Managers’ regional seminar series was “Advancing Minority Supplier Development in a Challenging Global Economy.” The regional seminar series kicked off in Atlanta, Georgia, in April, and provided those with new supplier diversity initiatives the key tools and strategies required to implement a robust process in their organization. The seminar also offered stakeholders of mature programs some fresh approaches to advancing minority supplier development within their organizations and throughout the global marketplace. United Parcel Service hosted the Atlanta seminar. The same curriculum was offered at the June regional seminar in San Francisco, California, and hosted by Chevron Corporation and Pacific Gas and Electric Corporation.

Advanced Management Education Program
In June, NMSDC hosted nearly 30 minority business owners for its Advanced Management Education Program (AMEP) at Northwestern University’s J.L. Kellogg School of Management. The program, which began in 1996, is a customized executive management program for entrepreneurs designed to address the unique challenges facing growth-oriented minority businesses. NMSDC corporate members sponsor minority business CEOs to attend the program. As part of the five-day program, the participants— whose companies had total revenue of $1.2 billion in 2008—are divided into groups to tackle the intensive curriculum taught by Kellogg’s award-winning faculty. Guest speakers are also invited to participate in the program, sharing stories of their business successes and failures. “This is the first time since my days in the NFL that I received valuable information (game plan) that I could implement immediately that would impact me and the lives of others—immediately,” said Adam Walker of Homestead Packaging Solutions. “Proverbs 4:7 says, ‘The beginning of wisdom is to acquire wisdom; and with all your acquiring get understanding.’ My time at Kellogg was full of wisdom that I could understand.” The faculty presented case studies on the importance of succession planning and management structure, discussed the core competencies in running a successful business, and managing growth and development, whether through hiring personnel or mergers and acquisitions. One case study titled

NMSDC is the most inclusive organization of its kind. Asian, Black, Hispanic and Native American individuals who are citizens own its 16,000 certified businesses.

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“Managing Strategic Change in the 21st Century” used the story of Robin Hood to illustrate the challenges the minority business owner may face in managing large teams. Another dealt with the critical issue of succession planning when a health crisis strikes at a small company. Additionally, there was a presentation on valuation, where the minority business owners learned how to calculate the value of their companies and other companies as a tool in determining the benefits of merging with or acquiring other companies. “There aren’t words to describe the events of the Kellogg Advanced Management Education Program,” said Greg Battle of Coolant Control. “The class was very powerful—even spiritual—and I will forever be changed. I feel stronger and way more prepared to focus the resources of my company as we drive for excellence in the current economic environment.”

Council Presidents and Certification Specialists
“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were five years old or less. That is about 40 million jobs.”
Robert E. Litan Vice President Ewing Marion Kauffman Foundation

NMSDC provides training for local Council presidents, Board Chairpersons and MBEIC Chairpersons on Board governance and by-laws, as well as customized training for the Council presidents, upon request. NMSDC conducted its annual certification training for dedicated certification staff members to ensure consistent policy and procedure for certification and policy adherence throughout the network.

Minority Business Information Center
The Minority Business Information Center handles the increasing requests for unique, practical and timely information on minority business development. As the most authoritative research and statistical repository on the subject of minority business development, it is repeatedly accessed by purchasing executives, MBEs and the media. The 15-year-old Information Center handles thousands of inquiries a year. Its collection includes: hundreds of books, Census publications, reference resources and statistical sources; a wide array of periodicals, including magazines, academic journals and specialty newsletters; • subject files, organized with specialized headings, comprising a wide collection of newspapers, magazine, and journal articles; reports and studies by independent research institutes, academics and other experts; and government reports.
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The Information Center is also responsible for fulfillment for NMSDC’s publications, which are also available to download from NMSDC’s Web site. Keeping up with the technology is the highest priority. NMSDC introduced its membership to a newly updated Web site in the first quarter of 2009. The site has a wealth of information and links to other related sites. The Minority Business Information System (MBISYS®) database continues to experience high usage by the corporate members. The data, frequently updated with information on more than 16,000 minority-owned firms, is supplied by NMSDC’s affiliated councils through a standardized certification process. The number of database users has increased to 3,618, a 10.7 percent increase over last year. As for search queries of the MBISYS® database, the number has risen from 234,371 to 327,504, which is a 40% increase since 2008. The password-protected database is a major benefit of corporate membership.

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In an effort to go green, all NMSDC® publications and newsletters are available through the Information Center and can be downloaded in pdf format through the NMSDC Web site at www.nmsdc.org. The most popular titles are: Best Practices in Minority Supplier Development—Guidelines • Guidelines for Second Tier Initiatives: Maximizing Opportunities for Minority-Owned Businesses • Guidelines to a Corporate Minority Business Development Program and • When You’re Good and Ready outreach brochures for prospective MBEs.

These industry groups represent hundreds of national member companies in such sectors as advertising, entertainment, media and sports; airline transportation; automotive; automotive components; consumer products; financial services; food and beverage; healthcare; hospitality; information systems technology; petrochemical; professional services; railroad; retail and apparel; telecommunications and utilities. Membership is by invitation only to national corporate members. The chairpersons of the groups meet early each year with Harriet Michel, NMSDC’s president, to discuss particular trends and concerns in their industries and to plan group strategies to leverage the experience of all to benefit MBEs around the country.

International
In 2009, the International Programs Advisory Committee added four new members representing four different industry groups. The new members are: Benita Fortner, director, supplier diversity programs, Raytheon Company; Allen C. Gray, corporate supplier diversity director, Navistar Truck Group; Barbara Martocci, vice president, global purchasing, MasterCard International Inc.; and Brian Tippens, supplier diversity manager, Hewlett-Packard Co. The International Program continues to flourish because of the support of NMSDC corporate members. The top contributors are Cisco Systems, Dell Inc., Exxon Mobil Corporation, International Business Machines Corporation and Verizon Communications. Exxon Mobil was just ahead of Cisco Systems in contributions for 2009, but Cisco has the highest cumulative contribution total since the program was established in 2001. NMSDC continued to extend its footprint around the globe with the official launch of the Australian Indigenous Minority Supplier Council (AIMSC) and the establishment of a blueprint for the creation of a minority supplier development organization in South Africa. International outposts in Canada, China and the United Kingdom continued to perform well.

Advanced Practices Group
NMSDC’s Advanced Practices Group is comprised of the leading practitioners in the field of minority supplier development. It provides a comprehensive approach to anticipating, analyzing and addressing trends and issues in the field. The Advanced Practices Group works to stimulate strategic solutions in areas such as capacity building, communication, education/ training, processes and supply chain. The Group spearheaded the “Leadership Development Series” at the NMSDC Conference. Buying organizations and supplier diversity professionals participated in tabletop topics related to advanced practices for minority supplier development. More than 80 of the nation’s leading corporations are eligible to participate in the Advanced Practices Group. Benita Fortner, director of supplier diversity for Raytheon Company, serves as the chairman of the Group.

Industry Groups
NMSDC facilitates the creation of informal networks of leadership companies concerned with issues related to minority supplier development.

NMSDC-certified companies must be at least 51% owned, operated and controlled by minority individuals.

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Australia
AIMSC was officially launched on September 15th at the Australian Parliament House in Canberra with an AU$3 million award from the Australian Department of Education Employment and Workplace Relations to operate a three-year Aboriginal supplier development pilot. Jenny Macklin MP, minister for indigenous affairs, and Senator Mark Arbib, minister for employment participation, hosted the launch event. At the launching, Stephen Roberts, chairman of AIMSC and CEO of Citi Australia, introduced a former member of KPMG’s advisory practice, Natalie Walker, as the new chief executive for the organization. Several corporate representatives joined with government officials for the launching, including representatives from the U.S. Minority Business Development Agency, a part of the U.S. Department of Commerce. Within its first few months of operation, several corporations and government buying organizations joined AIMSC, including Allens Arthur Robinson, Citigroup, the City of Sydney, Commonwealth Bank, Compass Group, Corporate Express, Cisco Systems, Foxtel Management, Freehills, IBM, K PMG, Leighton Holdings, New South Wales Department of Education and Training, Pfizer and Unisys.

“Supplier Diversity is an important part of Kroger’s business strategy. We want to be sure that our suppliers and products reflect the broad diversity of the customers and marketplaces we serve.”
David B. Dillon Chairman and CEO The Kroger Company

Canada
Thanks to services-for-fee provided by CAMSC to the Department of Indian and Northern Affairs, as well as the Government of Ontario, and strong corporate support, the organization is on a solid financial footing. CAMSC's members' reported spend for 2008 was $34,640,952. The figure for 2009 showed a remarkable increase, despite the economic downturn, and reached the $111.3 million mark. This is partly due to an increase in newly certified suppliers from the automotive components sector, as well as new suppliers.

China
MSD China held its first board meeting in February and installed its principal officers. Michael Yang, vice president and general manager, Dell (China) Co., Ltd., was named chairman of the organization. John Watkins, managing director of Cummins China Investment Company, Ltd., was named vice chairman. He is also chairman of the American Chamber of Commerce, a powerful business advocacy group in China. Nine corporations became charter members in 2009, including The Boeing Company, Cisco Systems, Coca-Cola, Cummins, Dell, IBM, Intel, Johnson Controls and Motorola. NMSDC led a 22-person delegation of corporate executives and minority business owners on a business mission in August to support MSD China on its first national conference and business opportunity fair. The mission was sponsored by Cisco Systems, Dell, IBM and Verizon. The mission participants also used the occasion to meet with high-level government officials and corporate executives to rally support for MSD China. In addition, MBE members of the delegation had an opportunity to immerse themselves in Chinese market dynamics and establish business contacts and relationships. The delegation visited government entities, state-owned enterprises, corporate facilities and Chinese ethnic minority business owners in the cities of Beijing, Chengdu and Shanghai.

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authority on minority supplier development, joined NMSDC on the trip. He, along with Ms. Michel, made a presentation at the University of Paris to a large audience of French professionals and business executives. The U.S. Commercial Service attached to the U.S. Embassy in Paris enthusiastically arranged and facilitated the itinerary and most of the group and individual contacts made during the trip. The group met with several leaders of the minority business community, media representatives (Ms. Michel did an hour-long interview on Radio France International and appeared on a prime-time news TV broadcast). They also met with members of the ruling party and government officials. Of particular interest to NMSDC was a private meeting held with President Sarkozy’s Commissaire à la Diversité et à l' Égalité des Chances, Monsieur Yazid Sabeg, to discuss the need to introduce legislation in France that can effectively allow for the mainstreaming of minority businesses. They also discussed different possibilities for NMSDC to assist in presenting the business case for minority supplier development in France.

South Africa
After a long period of discussions with principals of the South African International Business Linkages (SAIBL) and the National Business Initiative (NBI), NMSDC agreed to work jointly to create an NMSDClike organization in South Africa. This initiative received financial support from the U.S. Agency for International Development for a period of three years. During the summer, NMSDC worked with representatives from SAIBL and NBI in New York to hammer out an agreement and to develop an implementation strategy. A growing number of South African corporations have already aligned themselves with this new initiative and there are approximately 300 Black suppliers (BEE companies) in a database ready for certification.

United Kingdom
MSDUK wrapped up the end of its fiscal year and the numbers showed that despite the economic downturn, they retained 85 percent of their membership and welcomed six new members. MSDUK’s minority supplier database now has over 500 businesses listed for certification and its corporate members reported spend for 2009 was £4.3 million—representing a significant increase over previous years. The cumulative corporate spend for the past three years is £8 million. Also in 2009, there were some great MBE to MBE business relationships established that resulted in approximately £500,000 worth of business between them.

Minority Business Leadership Awards Dinner-Dance
NMSDC recognized David B. Dillon, chairman and chief executive officer of The Kroger Company; Alex Lopez Negrete, president and chief executive officer of Lopez Negrete Communications and Kenneth M. Ricketts, president and chief executive officer of Quality Packaging Specialists International, for their long-standing achievements in minority business development at its annual Minority Business Leadership Awards Dinner-Dance in May. Approximately 1,200 guests attended the black-tie event at the Hilton New York and Towers.

France
At the invitation of the French-American Foundation, and thanks to sponsorship provided by Raytheon Company, NMSDC President Harriet Michel and Eric Vicioso, director of the International Program, travelled to Paris in January to speak about the American experience in minority supplier development. Ralph Moore, a minority business owner and an

NMSDC’s Minority Business Information Center reported a 10.7% increase in the number of database users in 2009, bringing the total to 3,618. A surge in search queries in 2009 brought the total of recorded queries to 327,504.

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NMSDC President Harriet R. Michel praised their strength as visionary leaders in the business community, and their commitment to the goal of providing all Americans with access to participate in the nation’s economy. Mr. Dillon leads a company that employs 323,000 people. In 2008, Kroger celebrated its 125th anniversary and recorded sales of $70.2 billion. Kroger operates 3,660 stores, including nearly 2,485 supermarkets and multi-department stores, under two dozen banners in about 30 states. For more than 25 years, the company has had a supplier diversity process and has been a national corporate member of NMSDC. In 2007, Kroger spent $709 million with 738 Asian, Black, Hispanic and Native American businesses. Kroger also encourages its major suppliers to increase their supplier diversity opportunities. In 2007, Kroger reported $190.6 million through Second Tier spend. In 2006, Kroger reached its goal of spending more than $1 billion annually with minority- and women-owned businesses and was inducted into the Billion Dollar Roundtable. Mr. Negrete founded the Houston-based advertising and communications agency with his wife and partner, Cathy, along with the conviction that the Hispanic market is a viable and powerful consumer segment and that thoughtful, relevant, fully integrated, in-language and in-culture communications are the best way to reach this important market. His approach has produced results. The agency has more than 180 employees, and had $161 million in billings in 2008. Mr. Lopez Negrete credits the success of the agency to the fact that it comprises a team of multicultural, multinational, bilingual and bicultural communications professionals. Mr. Lopez Negrete is intricately involved in providing strategic counsel and creative direction to all of the agency’s clients, which include Bank of America, Microsoft, NBC Universal Pictures Group, Reliant Energy, Shell Oil Products U.S., Tyson Foods, Visa U.S.A. and Wal-Mart Stores. The company is an NMSDC Corporate Plus® member. Mr. Ricketts is the head of a packaging company based in Burlington Township, New Jersey. He describes the company as a “supply chain solution provider.” The company had sales of $145 million in 2008. Their customers for marketing, packaging and fulfillment services include Johnson & Johnson, Procter & Gamble and Wal-Mart. Quality Packaging® has 993 employees, of which 918 are minority employees. The company spent more than $1 million with other minority businesses in 2008. Mr. Ricketts participates with the National Minority Manufacturing Institute to increase the number of minority manufacturers in the U.S. Quality Packaging is a Corporate Plus® member. Gerald Parsons, chairman and chief executive officer of Communications Test Design, served as Honorary Chairman for the gala event. Nearly 150 chairmen of America’s leading corporations including AT&T, Cartus, Cisco Systems, Consolidated Edison Company of New York, Exxon Mobil, Kraft Foods, Liberty Mutual Insurance, Macy’s, Pfizer, Raytheon Company, Toyota and United Parcel Service served on the Honorary Dinner-Dance Committee. Earvin “Magic” Johnson, chairman and chief executive officer of Magic Johnson Enterprises, was master of ceremonies for the event. The George Gee Orchestra featuring Carla Cook provided musical entertainment, and Luisito Ayala and his Orchestra and the Asian-American Jazz Connection performed at the Chairman’s Reception.

“By intentionally including the diverse perspectives, ideas, and experiences of our partners around the world, we are better equipped to accelerate the development of innovative products and technologies that our customers want and value.”
Alan R. Mulally President and CEO Ford Motor Company

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Conference and Business Opportunity Fair
The NMSDC hosted more than 5,500 corporate executives, minority supplier development professionals, minority business owners and representatives from government agencies and other buying institutions at the 2009 NMSDC Conference and Business Opportunity Fair, which was held at the New Orleans Morial Convention Center in New Orleans, Louisiana, October 25-28. Conference participants attended more than 30 workshops and plenary sessions led by some of the nation’s leading authorities on minority supplier development. The theme for the four-day event was “Minority Businesses and Corporate America: Recipe for Success.” The Host Committee and the Louisiana Minority Supplier Development Council worked together to create an excellent conference, and 170 volunteers provided support for the event. The one-day Business Opportunity Fair, the announcement of NMSDC corporate member purchases and the recognition of the organization’s national award winners were the highlights of the event. A variety of industries participated in the annual Business Opportunity Fair, the largest event of its kind. More than 400 corporations, minority suppliers and national resource organizations filled 650 exhibit booths during the one-day event to kick-off four days of conference activities. During a tough economic climate, NMSDC corporate members remained committed to minority supplier development, purchasing $100.5 billion from minority suppliers. PepsiCo was named Corporation of the Year. The company was selected from among 73 nominees for the award that recognizes a corporate member’s exemplary achievements in minority busi-

ness development. Supplier diversity objectives are part of PepsiCo senior management’s performance goals. The company has a cross-functional Supplier Diversity Executive Council to ensure sustained growth and development in the supplier diversity arena. In 2008, PepsiCo spent $614 million with nearly 400 NMSDC-certified minority businesses. Its first-tier spend increased 10 percent over 2007, despite the downturn in the economy. The company’s combined first- and second-tier spend totaled more than $900 million. The Georgia Minority Supplier Development Council was named Council of the Year and Benita Fortner of Raytheon Company was named Minority Supplier Development Leader of the Year. James Lowry, a noted authority on minority business development, and Ms. Fortner, director of supplier diversity at Raytheon, also received Special Appreciation awards for their long-standing commitment to minority supplier development and their contributions to the NMSDC. Four minority firms were named National Supplier of the Year: Crystal Kendrick of The Voice of Your Customer for Class I (companies with annual sales less than $1 million); Vic Narang of General Data Kommunications Network for Class II (sales between $1 million and $10 million); Mark Govin of MarkMaster for Class III (sales of $10 to $50 million) and Ranjini Poddar of Artech Information Systems for Class IV (sales greater than $50 million). Twelve minority businesses were honored as Regional Suppliers of the Year. They are APR Consulting, Diamond Bar, California; BKW Transformation Group, Piscataway, New Jersey; DFW Urgent Care, Hurst, Texas; Group O, Milan, Illinois; MedSafe, Inc. (dba Medsafe-Equimed), San Juan, Puerto Rico; NK David Constructors, Mission Hills, California; PLM Staffing Systems, Royal Oak, Michigan; Primera Engineers, Chicago, Illinois; River City Furniture, West Chester, Ohio; Sugar Bowl Bakery, Hayward, California; Virtelligence, Eden Prairie, Minnesota; and ZeroChaos, Orlando, Florida.

In 2009, South Africa joined the list of countries with organizations modeled after NMSDC, to ensure that ethnic minorities have an equal opportunity to participate in their country’s economy. Similar organizations are operating in Australia, Canada, China and the United Kingdom.

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Corporate Minority Supplier Development
2009 was a year of economic crisis for many industry sectors at NMSDC. In an environment of urgency, high stakes and uncertainty, the leadership skills and supply chain solutions of procurement professionals proved invaluable. Corporate supplier diversity directors kept their eyes on the prize, sought out new and increased contract opportunities for talented Asian, Black, Hispanic and Native American-owned businesses, and helped them grow. Today, more than one-third of the U.S. population is comprised of Asians, Blacks, Hispanics and Native Americans, who by 2050 are projected to represented half our population, according to the Census Bureau. And the minority business population is growing rapidly. We take enormous pride in sharing some of our corporate members’ success stories in increasing business opportunities for minority suppliers.

“Our diverse supplier network brings us new ideas and opportunities.”
K e n d a l l J . Po w e l l Chairman, President and CEO General Mills, Inc.

MBEs Go Green
Johnson Controls, Inc. creates “smart environments” that integrate technologies, products and services for over 200 million vehicles, 12 million homes and one million commercial buildings through its three main businesses: automotive services, building efficiency and power solutions. So when it was time to expand its corporate headquarters in Glendale, Wisconsin, and demonstrate its energy efficiency capabilities, a spectacular new “green" headquarters was planned for its 33-acre campus. Johnson Controls set and exceeded its supplier diversity goal of 20 percent for minority- and women-owned firms for this $73 million, 306,350-square-foot construction project. The project included three new buildings—one for its Power Solutions business; another containing meeting rooms, a cafeteria and fitness center; and a four-level parking garage. An additional 160,000 square feet was renovated for its corporate headquarters. Johnson Controls held numerous meetings with NMSDC affiliates in Illinois, Michigan and Wisconsin to announce this construction project. The meetings were designed to clarify the project’s sustainability elements and encourage MBEs to collaborate on bids that otherwise might be beyond their individual capabilities. Participating in the project would help position suppliers to work on future “green" projects. These include 1,450 solar panels; skylights and large windows to reduce dependence on artificial light; geothermal heat pumps to harness the earth's natural heating and cooling capability (which reduce winter heating costs by 29%); rainwater for toilet-flushing; permeable paving that directs runoff water and melted snow to a pond for harvesting; and a roof that absorbs rain and provides insulation. Minority- and women-owned firms did on-site electrical and green landscaping services, steel fabrication, deck installation and low-voltage cable installation, among others. Some of the MBE suppliers involved were Affirmative Supply Co., B&D Contractors, Copy N' More, Dairyland Electric, Hurt Electric, Price and Sons, Rams Contracting, Sonag Company, and Thomas A. Mason Co. The new headquarters opened in late 2009.

Award-winning Year
PepsiCo, Inc. racked up 14 national and regional awards in 2009, including Corporation of the Year from NMSDC. The beverage and food maker won the same award from the Dallas/Fort Worth Minority Supplier Development Council and Southern Florida Minority Supplier Development Council. Despite the recession and an overall 7% decrease in spending with suppliers, PepsiCo’s spending with minority-owned firms remained the same.

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Universal Display and Fixtures Company, one of the largest independent manufacturers of point-of-purchase displays and store fixtures in the industry and an NMSDC Corporate Plus® member, is a Native American-owned business based in Lewisville, Texas. In 2009, Universal Display was instrumental in assisting PepsiCo to increase store traffic and drive retail sales of snack products through the national rollout of racking systems in support of the company’s multi-cultural marketing efforts in both convenience stores and national grocery chains. Group O, one of the largest Hispanic-owned businesses in the United States and a Corporate Plus® member, offers comprehensive marketing, packaging and supply chain solutions to meet the needs of Fortune 1000 clients across a broad range of industries. In 2009, the Milan, Illinoisbased company worked collaboratively with PepsiCo to reduce the use of secondary packaging material. The result was cost savings and carbon footprint reductions across multiple manufacturing facilities nationwide. Sun State International Trucks, LLC, a Black-owned truck dealer with locations in Tampa, Sarasota and Davenport, Florida, is a long-term supplier of medium-duty trucks for PepsiCo's fleet.

plus solid business instincts, made for a winning combination. Dynasty (which began making T-shirts only) expanded its line over the years to include track jackets, jerseys, hooded fleece pullovers, polo shirts, thermals, fashion tops, shorts, fleece and raglans. Since its first licensing agreement with Major League Baseball in 1995, Dynasty sells to mass retailers Wal-Mart, Kmart and Target, as well as J.C. Penney, Modell's, and Major League Baseball's online shop, mlb.com. On the league Web site, Dynasty sells its apparel under the Stitches brand. Today, its sales total $160 million, with royalties of $16 million. Dynasty, which has over 200 employees, has entered into sponsorships with several baseball teams, including the Chicago White Sox, Cleveland Indians, Detroit Tigers, Florida Marlins, Los Angeles Dodgers, and Pittsburgh Pirates. The company is also involved in several marketing initiatives. These include the “Dynasty T-Shirt Toss,” where T-shirts emblazoned with team logos are tossed into the crowd at home games, and a showcase event with the Chicago White Sox where top high school player prospects demonstrate their ability before team scouts.

Specialized Construction
Darden Restaurants, Inc. owns and operates over 1,700 restaurants across the country. The company opened a spectacular new headquarters in Orlando, Florida, in late 2009 that is LEED (Leadership in Energy and Environmental Design) gold-certified by the U.S. Green Buildings Council for its environment-friendly features. Those features range from use of ambient lighting and reclaimed rainwater in bathrooms, to motion sensors that turn off lights when an employee leaves an office and recycling of waste building materials. The restaurant chain spent 19% with diverse-owned suppliers for this 468,000-square-foot building. Darden's headquarters, which consolidated employees from 14 different buildings in Orlando, houses test kitchens for its six restaurant brands, a gym, wellness center, dry cleaner, and high-end employee cafe offering grilled fish, Asian stir-fry specialties and made-to-order salads. Timely completion was crucial. Darden worked with JCB Construction, a Black-owned Orlando, Florida-based firm that handled all the site work on time and in a professional manner.

Teaming for Success
For Major League Baseball, Dynasty Apparel Industries, a Hispanic-owned Miami firm, designs, markets and distributes clothing decorated with marks of its member clubs, as well as All-Star Game and post-season logos. Founded in 1980 by three brothers—Armando, Lorenzo and Ignacio Mendez—as a joint venture with Baseball Hall of Famers Tony Perez and Octavio "Cookie" Rojas, Dynasty became the league’s first minority-owned and operated licensee. After Perez and Rojas retired from professional baseball, they retired to Miami, where they became friends with the Mendez brothers, who are avid baseball fans. They expressed interest in the business side of baseball. As a team, they approached Major League Baseball and proposed designing apparel for baseball fans. The former pros' strong relationships within the baseball community,

One out of every seven people who lives in the U.S. is of Hispanic origin. By 2014, one person out of every six in the U.S. will be Hispanic.
Selig Center for Economic Growth

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Driving Ahead
Despite 2009 being a tough year for the U.S. automotive industry, Ford Motor Company continued its long-standing history of commitment to supplier diversity by purchasing over $2.7 billion in goods and services from minority Tier 1 suppliers. Ford's largest Tier 1 suppliers also reported over $1 billion in spending with MBE suppliers. Recognizing the distress in the automotive supply base, Ford Motor was proactive in providing vital MBEs with significant business opportunities, while providing support to others to improve their chances for long-term viability.

“We choose diverse suppliers because they reflect the stakeholder base we serve, furnish our company with outstanding commodities and services at competitive prices, and demonstrate integrity and trust in their business practices.”
James E. Rogers Chairman, President and CEO Duke Energy Corporation

In 2005, Ford began identifying a core group of companies as Aligned Business Framework suppliers— considered Ford's long-term preferred business partners—that have the opportunity to expand their business in their designated commodity areas. Since then, Ford has named 13 minority-owned firms as preferred suppliers, including four in 2009. This initiative enabled Ford to sell Meridian, one of its business units, to Flex-N-Gate, an Asian Indian-American-owned body and exterior components provider in Urbana, Illinois. The purchase allowed Flex-N-Gate to add exterior vehicle lighting systems to its product portfolio, and thus expand its value proposition. Ford's strategic decision to transfer a significant piece of interior headliner business from a mainstream supplier also supported Grupo Antolin Primera Automotive Systems, LLC, a headliners and interior components supplier. The company is a joint venture between Black-owned Global Automotive Alliance and Grupo Antolin North America, a Hispanic-owned global interior supplier whose U.S. headquarters is in Michigan. Ford's other Michigan-based preferred MBE suppliers are: Dakkota Integrated Systems, a Native American supplier of headliners and other component assemblies in Holt; Devon Industrial Group, a Black-owned general construction contractor in Detroit; East West Industrial Engineering, Inc., an Asian Indian-American-owned distributor of industrial cutting tools and abrasives in Ann Arbor; Evigna, an Asian Indian-American-owned supplier in Madison Heights (Ford's exclusive provider of promotional merchandise); Global Parts and Maintenance, a Hispanic-owned vendor management firm in Westland; Gonzalez Production Systems, a Hispanic-owned manufacturing tooling supplier in Madison Heights; Saturn Electronics, an Asian American-owned manufacturer of electro-mechanical components in Rochester Hills; and Piston Automotive, a Black-owned assembler of vehicle components in Redford. Outside Michigan, Ford's preferred MBE suppliers are Prime Wheel, an Asian American-owned wheel manufacturer in Gardena, California; Uniworld Group, a Black-owned advertising agency in New York City and Ford's agency of record in reaching Black consumers; and Zubi Advertising, a Hispanicowned advertising agency in Coral Gables, Florida, that is Ford's agency of record in reaching Hispanic American consumers. For AEL-SPAN, a Black-owned firm in Belleville, Michigan, the successful bidder for the global distribution of Ford parts—a major chunk of business with a double-digit growth opportunity—persistence paid off. Ford also upgraded Hispanic-owned Husco International, a Tier 2 supplier in Waukesha, Wisconsin, to Tier 1 status, and sourced new powertrain manufacturing business with a commitment to a multi-year agreement. These opportunities provided these MBEs with new business worth over $150 million during a time when purchasing budgets and the supply base were being downsized. In 2009, Ford offered financial support to a key MBE supplier on the verge of violating its bank lending agreements and going out of business. Though Ford was not its largest customer, Ford purchasing staff took the lead in delivering financial support and securing the necessary commitments from its other customers to support the MBE. The bank agreed to continue the MBE's line of credit and

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offered more time so it could diversify its customer base. As a result, this MBE is profitable, and its customer base is well-diversified. Ford also has a game-changing effort that gives diverse suppliers access to its intellectual property assets, the Joint Technology Framework initiative. After adding Piston Automotive and Saturn Engineering & Electronics in 2009, Ford now has eight minority- and womenowned businesses as participants in its JTF program. A new bonding tool from Gonzalez Production Systems is one of the projects being worked on. Ford Motor Company Chief Executive Officer Alan Mulally said, “Diversity and inclusion are key to our success at Ford, and we are committed to having a supplier base that reflects our employees, our customers and our shareholders. Having a broad and diverse supplier base reinforces our commitment to the communities where we live and work and increases our ability to secure some of the very best commodities. Embracing various cultures strengthens our competitive advantage and allows Ford to deliver the very best products to a diverse and growing marketplace."

winning construction management services firm, the opportunity to act as general contractor on Mas Club, while being mentored by, and subcontracting to, another firm that technically was the general contractor of record. As a result of CARCON's performance on the 143,000 square-foot Mas Club, this MBE bid for, and won, contracts to remodel several Wal-mart stores on its own. The Dallas-based firm was founded by owner Arcilia Acosta's late father in 1985, and re-incorporated by her in 2000. LaSalle Group, Inc., a Black-owned Canton, Michiganbased construction manager, general contractor and facility services firm and long-term Wal-mart supplier, was another MBE who grew its business with the retailer in 2009, winning several remodeling contracts. Last year, Los Kitos Produce, a Hispanic-owned Fresno, Californiabased vegetable and fruit supplier, increased its product line and supplied more Wal-mart stores, which emphasize locally-grown produce. In 2009, Wal-mart had $2.75 billion in spend with Asian, Black, Hispanic and Native American suppliers.

Supplier Alignment
Nominated by Wells Fargo, Akraya Inc., an Asian IndianAmerican-owned staffing firm in Sunnyvale, California, won the 2009 Supplier of the Year Award from the Northern California Minority Supplier Development Council in the $10 million to $50 million category. But this was just one of 14 national and local awards won last year. Akraya specializes in supplying IT, engineering, marketing and creative (both print and Web) staffers, plus managed solutions from customizing applications to brand management. Its president, Sonu Ratra, won the Enterprising Women of the Year Award by Enterprising Women Magazine. After Wells Fargo's merger with Wachovia Bank in 2009, several fast-paced, high-profile initiatives were kicked off to rapidly integrate Wachovia’s systems. Several key managers at Wells Fargo called upon Akraya for timely delivery of quality technology and functional resources. The results—a shortened hiring process and the ability to deliver mission-critical launches on time—were achieved

Growing Suppliers
Wal-mart, the world's biggest retailer, opened or remodeled hundreds of U.S. stores in 2009 under a strategic plan to upgrade the shopping experience, improve the variety of merchandise, and keep prices low called Project Impact. This Wal-mart effort involves improving store layouts and signage, widening aisles and expanding some departments such as electronics, and offering test stations for products from laptops to cameras to make shopping more convenient and enjoyable. Many MBEs won contracts for this work. A new store, called Mas Club, in Houston, Texas, is Walmart's first membership warehouse club to offer a wide variety of Hispanic products, including brand names like Badia spices, and LaHuerta. It opened in 2009. Wal-mart offered CARCON Industries, a Hispanic-owned award-

Business owners represent roughly 10% of the workforce, but hold nearly 40% of the total U.S. wealth. Strong minority business growth directly impacts the reduction of inequality of earnings and wealth between minorities and non-minorities.
U.S. Minority Business Development Agency

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due to Akraya’s understanding of technology and Wells Fargo’s business processes. In addition, Akraya effectively leveraged its innovative custom-built recruitment software with customer relationship management and applicant tracking system capability, and marketing campaign management to deliver responsive customer service. Akraya's software enabled Wells Fargo to access real-time status updates about the recruiting process and share information. This allowed Wells Fargo to fill job openings faster and more efficiently. Akaya's smart strategic use of technology meant keeping costs low and passing along those benefits to the client. With a focus on outstanding service and innovative technology solutions that target a client’s pain points, Akraya continued to earn high ratings from Wells Fargo in 2009 in the areas of quality of resources, responsiveness, price, fill ratio and compliance. The firm tripled its business with Wells Fargo from 2008 to 2009. Akraya expanded its support of applications from Wells Fargo's wealth management unit to several groups, including account product services, enterprise business services, production support, emerging technologies, Internet services, retail/wholesale banking and business banking. Akraya is also in tune with Wells Fargo's values of corporate social responsibility and minority supplier support. In 2009, both companies mentored a business owner from Rwanda as part of The Institute of Economic Empowerment for Women’s Peace Through Business Program.

“At Wal-Mart and Sam’s Club, our Supplier Diversity program is creating an even more diverse foundation for our business and helping us to become truly inclusive.”
M i c h a e l T. D u k e President and CEO Wal-Mart Stores, Inc.

Outsourcing Opportunities
When International Business Machines (IBM) won a five-year contract from SunTrust Bank to support the bank's call center with an estimated call volume of over 50,000 annual calls, it outsourced some of the work to Apex Computer Systems, an Asian American-owned firm in Cerritos, California. Apex would be responsible for providing services personnel, mostly in the Southeast U.S., and for the bank's warehouse and depot facility in Orlando, Florida, which supports roll-out and integration of current and future IT technology for all bank branches and office locations. SunTrust was seeking to streamline its process and reduce costs. Its needs ranged from a service desk; end-user computing; on-site support for all end-users; end-user remote support; desktop and laptop hardware and software repairs; server and network support for remote sites; and software packaging/ distribution. Its goal was to find a long-term partner with this expertise. IBM filled this need, and awarded a five-year contract to Apex, whose benefits included a single point-of-contact for all service requests, a zero-defect operation, a reduction in steady costs but an increase in service levels, and a reduction in the total cost of ownership for SunTrust. When ValorOne, LLC, a new Black-owned firm whose focus was reserve supply chain management and managed services for computing and electronic devices, opened in 2009 in Chicopee, Massachusetts, IBM was its first customer. IBM was familiar with many key people involved in the launch through a mentoring relationship with the minority-owned financial services firm where they had previously worked. That firm had fallen on hard times due to the double whammy of the recession and increased overseas outsourcing. During ValorOne's start-up phase, IBM identified a team to close out business with the prior company, and get the new company up and running expeditiously. They had faith in the talented people whose goal was to create an entity with deep-seated roots in both technology and service.

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ened its desire to define its IT strategy. By 2011, projections say, Liberty will become the IBM facility management business council's largest diversity supplier from a spending perspective. Many U.S.-based MBEs provide goods and/or services to IBM overseas, much within commodities like subcontract services. For example, IBM Customer Support centers in Brazil, Canada, China, Denmark, Hungary, India and Sweden use U.S.-based minority suppliers for business services, travel, software and hardware components. IBM's relationship with ZeroChaos, a Black-owned technical services staffing firm in Orlando, Florida, continues to flourish. ZeroChaos—which has expertise in ERP skills sourcing—is a predominant strategic supplier of technical services to IBM in Canada, the U.S., and a number of countries in Europe. Its continued work for IBM has resulted in significant cost savings. This superior level of performance led to the selection of ZeroChaos as IBM's primary staffing supplier for Belgium, Denmark, Finland, France, Luxembourg, the Netherlands, Norway and Sweden. The services it provides are expected to yield an increase in business of $25 million or more per year, bringing its annual IBM total to more than $214 million. IBM's global diversity initiatives include participation on NMSDC's International Committee, being a founding member of every international supplier diversity organization modeled after NMSDC. In 2009, IBM went on an NMSDC business mission to China, and to Australia, Canada, South Africa and the United Kingdom in previous years. The company's supplier diversity spending outside the U.S. has nearly quadrupled from just $264 million in 2003, to $806 million in 2009. IBM Vice President and Chief Procurement Officer John M. Paterson said, “For decades we have benefited from the diversity of our supplier base. Their contribution to IBM's success is without question and will continue to play a key role in our business in the future. The progress made would not have been possible without the capabilities of the suppliers, the focus and commitment of many IBM'ers over the years, and importantly the support and impetus of the NMSDC.”

IBM's commitment not only helped launch ValorOne, it also provided it with the credibility and stability that enabled them to grow and attract other Fortune 500 customers. This MBE's technical abilities, flexibility and value-added services make it an invaluable partner with the ability to respond to IBM's needs relating to cutting-edge technology from start to finish. Since then, IBM has become an unofficial “mentor" to ValorOne, and is extremely proud of the role it played in the company’s beginning phases. “The commitment that flowed so easily from IBM will always be remembered and cherished,” said ValorOne President Cedric Turner. Based on its quality of work on IBM projects since 2003, B2B Enterprise Applications—a Black-owned IT consulting firm in Alpharetta, Georgia—teamed up with IBM in 2009 to pursue a wide variety of opportunities. The results: a high contract award success rate with federal agencies, like the U.S. Department of the Interior, U.S. Army and U.S. Air Force. As a small diverse firm, this MBE realized early on that to play to win in the federal government procurement arena, it needed to join forces with top Tier 1 partners. As a result, it often became a Tier 2 team partner with IBM, chosen for its ability to bring consultants skilled in Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) to the table to create value-added and cost-effective tools. Its successful partnership with IBM has resulted in a substantial rise in contract and task order awards for B2B EA, and a steady increase in its annual revenues. Liberty Power, a Hispanic-owned energy retailer in Fort Lauderdale, Florida, and the only SBA 8(a) certified national energy retailer, became an IBM supplier in 2008. The firm is known for its strong customer service as well as its innovation, signified by its willingness to work with IBM on “green” energy solutions. IBM's facility management business council team nominated Liberty for IBM's Mentor Program in 2009 because it viewed the firm as poised for growth, and the company was also aligned with IBM's strategy. IBM helped assess Liberty's IT infrastructure capabilities and future requirements, and sharp-

Minorities, now roughly one-third of the population, are expected to become the majority in 2050 (Asian, 6%; Black, 12%; Hispanic, 28% and Native American, 5%).
U.S. Bureau of the Census

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Innovation Requires Diversity
The Procter & Gamble Company spent over $2 billion for the second consecutive year with minorityand women-owned suppliers in the U.S. in 2009. The company was honored as Corporation of the Year by the South Central Ohio Minority Supplier Development Council. An example of P&G's ongoing investment in supplier diversity is Promotion Execution Partners, a Black-owned Cincinnati-based marketing promotions firm whose focus is project management. The firm was formed to meet P&G’s emerging need for marketing promotion execution from a collaborative idea between Valassis, a public marketing services corporation whose discount coupons reach 100 million U.S. shoppers each week through newspapers, mailings and online, and Quality Packaging Specialists International, a Black-owned packaging, marketing and fulfillment supplier in Burlington Township, New Jersey. PEP began in 2004 with seven employees in one location. Since then, PEP has added over 25 new clients, increased its number of employees over tenfold, and expanded to several additional cities. Its consistently superior performance won Supplier Excellence awards from P&G in 2008 and 2009. To ensure that P&G's majority-owned and international supplier partners work with minority- or women-owned firms, the company inserted Tier 2 contract language, and put guidelines in place for all contracts in North America. The results, which greatly expand the impact of P&G's supplier diversity strategy: a 12% increase in Tier 2 spending results in the past year alone, and a 60% increase over the last four years. “Innovation requires diversity. It’s often the result of unanticipated insights and connections made by diverse organizations by people who reflect the diversity of the consumers we serve and who bring diverse backgrounds, cultures, styles and experiences to the work we do every day. We need diversity at every point within our business and innovation network, and as a result, Supplier Diversity is a business strategy at Procter & Gamble—a strategy we’ve focused on since the mid-1970s," said Dwain Carver, corporate supplier diversity leader at Procter & Gamble. “We know these business partners are major employers of minorities and women. When we invest with diverse suppliers, we not only strengthen our innovation and go-to-market capabilities, but we also touch and improve the lives of the women and men who work in these companies—and through them, their families and the communities in which they live and work. This is an important way we fulfill P&G’s purpose."

“We profoundly believe in the value minority businesses bring not only to their corporate customers, but also to their communities and the entire nation. Any economic recovery must include participation from Asian, Black, Hispanic and Native American businesses.”
Harriet R. Michel President NMSDC

Worldwide Service
Chevron Corporation entered into a master agreement in 2009 with Cust-O-Fab, a Native Americanowned Tulsa, Oklahoma, firm to supply heat exchangers across Chevron business units worldwide. This critical equipment involves high temperatures and pressures to cool fluids in upstream and downstream operations. Until then, Cust-O-Fab had primarily done work for Chevron’s downstream operations in North America. Under the new agreement, the firm has access to international business opportunities across Chevron’s global operations. Cust-O-Fab also has greater responsibility for ensuring that engineering and fabrication meet Chevron’s quality and reliability standards, for increasing standardization, and reducing costs. This is in an area where MBEs typically do not compete.

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Strategic Partner
The partnership between General Mills and MW Logistics, a Black-owned firm in Dallas, Texas, is a true success story on several levels. When the relationship began, it could have been a purely tactical one. Instead, it's developed into a collaborative effort because of MW's ability to forge innovative, efficient and sustainable solutions to transportation challenges—making it a critical component in General Mills' transportation and logistics success. An NMSDC Corporate Plus® member inducted in 2009, MW now serves as one of the corporation's most strategic MBE partners. Last year, the Dallas-based MBE approached General Mills to ask if it wanted to assist its philanthropic program, Project Uplift, which donates books to a local charity. This program tied in well with General Mills’ own efforts to promote literacy for children through its Cheerios Spoonfuls of Stories program. As part of the program, the cereal brand donated over 40 million children's books since 2002, placing them inside specially-marked cereal boxes. Involvement in MW's Project Uplift also gave General Mills meaningful engagement in a community and market where it didn’t have a physical presence. General Mills Chairman and CEO Ken Powell said, “Our diverse supplier network brings us new ideas and opportunities. But beyond the value benefit, our supplier diversity program also helps us support, grow and nourish the communities in which we live and work.”

For Blind Faith, its deepest offshore production facility (located 6,500 feet down in the Gulf of Mexico) Chevron contracted with Gulf33 Valve Pros, Inc., a Black-owned onshore, offshore and deepwater valve repair firm, for valve maintenance. The Lafayette, Louisiana-based MBE won the Supplier of the Year award from the Louisiana Minority Supplier Development Council in 2009 after being nominated by Chevron. In addition, Chevron was a sponsor of the NMSDC Business Consortium Fund's first financial management seminar in 2009 titled “Enriching the Bottom Line: A Small Business Roadmap.” Chevron also provided four scholarships to MBEs to attend. In January 2009, Chevron co-hosted a Petrochemical Industry Group forum for suppliers who are core to its industry. Because safety is a top priority, Chevron partnered with the Houston Minority Supplier Development Council and the U.S. Occupational Safety Hazard Administration to host a Safety Academy to educate MBEs on the importance of developing a safety program for their companies. For more than 10 years, Chevron has hosted NMSDC's Regional Program Managers’ Seminar. In summer 2009, it also hosted Northern California Minority Supplier Development Council's largest Meet the Buyers forum. “Chevron is committed to being the partner of choice and creating social and economic value wherever we do business, and integral to these efforts is having a supplier network that reflects the communities where we operate," Chevron Chief Executive Officer John Watson stated. “Fostering and maintaining productive, collaborative relationships is crucial to our success. I am pleased with the accomplishments of our supplier diversity/small business program, which is an essential component of our procurement/supply chain management and corporate business plans and one of the building blocks that supports Chevron's overall success as a business enterprise.”

Networking Works
The highly successful and mutually beneficial business relationship between Kaiser Permanente (which comprises Kaiser Foundation Health Plan, Inc., the nation's biggest non-profit health insurance plan serving 8.6 million members, particularly on the West Coast; Kaiser Foundation Hospitals and the Permanente medical groups) and World Wide Technology, Inc. wasn't formed overnight. The two companies first met at the 2008 NMSDC Conference and Business Opportunity Fair. The relationship grew stronger after the St. Louis, Missouri-based

Small businesses create most of the nation’s new jobs, employ about half of the nation’s private sector workforce, and provide half of the nation’s non-farm, private real gross domestic product (GDP), as well as a significant share of innovations.
U.S. Small Business Administration

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MBE met key decision makers at NMSDC events and other outreach activities, and gained a solid understanding of Kaiser Permanente’s expectations of its suppliers to excel in delivering value, products and services to the organization and its health plan members. After many months of cultivating the relationship, WWT was invited to participate in a request for proposal for facility equipment and engineering services. It signed the two-year national contract in March 2009. WWT Account Executive Dicran Arnold commented, “In my role, I’ve worked with many supplier diversity programs and would rank Kaiser Permanente among the best. You can always tell when a diversity program is well-run: it's when it sets high goals and standards that are passed from the top down and followed by all. In the time I've worked with them, their supplier diversity team has done this and more.”

“At AT&T, diversity and inclusion are essential components of a successful business strategy. By respecting and including different viewpoints, we are better able to serve our customers, employees, business partners and communities.”
Randall L. Stephenson Chairman, President and CEO AT & T I n c .

Global Contracts
Dell Inc. was inducted into the Billion Dollar Roundtable in 2009. The company’s spend with diverse firms doubled in the past few years, growing from $545 million in 2006 to more than $1 billion in 2009. Dell takes pride in mentoring and coaching qualified MBEs to expand to overseas markets. For example, Dell helped Technology Integration Group, an Asian Pacific-American-owned computer systems integrator and IT consulting firm based in San Diego, and World Wide Technology, Inc., a Blackowned firm based in St. Louis, Missouri—both Corporate Plus® members—expand their operations overseas. As a result, TIG, which is ISO 9001:2008 certified, opened its first overseas office in Shanghai, China, as a Dell IT service partner. WWT does business with Dell in Brazil and Asia. With guidance from Dell's leadership, NMSDC's China Advisory Committee spearheaded the creation of Minority Supplier Development-China. Dell encourages and facilitates strategic alliances to enable MBEs to participate in large global contracts. For example, Diversa, the joint venture formed between Integrated Human Capital, a Hispanicowned El Paso, Texas, firm and the second-largest staffing company in the world, the Randstad Group, in late 2009 melds IHC's understanding of local markets with Netherlands-based Randstad's global resources. Diversa supplies temporary and permanent staffers, on-site consultants, and specialized human resources consulting. Dell, which has over 40 supplier diversity champions in worldwide procurement and its business units, has innovative programs such as Direct Talk, which provides direct access to Dell executives and helps build MBE capacity. Dell also formed strategic partnerships with 18 small businesses and MBEs for government IT contracting opportunities. Its Global Diversity Council is chaired by Michael Dell, the company’s chief executive officer. Its Global Supplier Diversity Steering Committee is chaired by Kevin M. Brown, Dell’s chief procurement officer.

Long-term Partnership
Among the MBE success stories at BP America is Wise Men Consulting, a Houston-based supply chain staffing and consulting firm with a 15-year history of supplying contractors and consultants to BP. Over the years, Wise Men, which currently has 14 contractors and two consultants on assignment at BP, has supplied buyers, materials/logistics specialists and supply chain analysts, among others, to multiple locations and departments, including global procurement and supply chain management at the Texas City Site.

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Electric Supply is an electrical and lighting components supplier that serves UPS nationwide. Participation in the COE program will help both MBEs build capacity for their firms. The module will be completed in 2011. Both Black-owned, Atlanta-based firms also took part in UPS' mentoring program, where they were partnered with commodity managers to understand the nature of the commodity from the buyer's perspective and each other's needs. UPS also sponsored both companies for NMSDC's Advanced Management Education Program.

For BP, Wise Men has developed customized market intelligence reports for oil and gas commodities, conducted a supplier readiness assessment for its Exploration and Production segment, and developed organizational strategy recommendations from workshop results. Due to high demand for outsourcing, including tactical buying, expediting, contract administration and contract auditing/ compliance, Wise Men opened a 10,000 square-foot facility in India. Garza Maintenance & Construction, LLC, a Hispanicowned company in Griffith, Indiana, recently won two projects in BP’s Whiting Refinery in Indiana: a demolition project and a contract for snow removal. Aztec Facility Services, Inc., a Houston-based Blackowned firm, also was awarded a contract at the Whiting Refinery for janitorial services. In addition, Aztec provides service to a New Jersey facility of Air BP, BP's aviation division, which supplies fuels and lubricants to airlines, businesses, defense and humanitarian organizations. BP also invited minority- and women-owned suppliers concentrated in potential growth areas (chemical/lubes, MRO, OCTG/casing and tubing, engineering services and offshore transportation) to a Supplier Engagement Forum in Houston. Seventeen suppliers and over a dozen BP procurement professionals attended, and, as a result, three suppliers were invited to compete for immediate business opportunities.

Growing MBEs
During 2009, The Boeing Company purchased $160 million in computer hardware and software from MBEs. Boeing played a major role in the growth and success of these firms and many are now large NMSDC Corporate Plus® members. An active member of the Billion Dollar Roundtable, Boeing continued its strong support for financial industry MBEs, investing significant pension funds with them through The Boeing Corporate Treasury. Currently, Boeing has $3.5 billion under the management of minorityowned firms. In addition, minority firms participated in the company’s stock buyback program.

Going Forward
Successful MBEs understand that corporations examine every aspect of their operations to determine the return on investment and make sure spending is strategically aligned to their business plan. Minority-owned firms that thrive instinctively know that a corporation’s challenges are their challenges, and help lower costs, provide innovative solutions to problems, increase efficiency and adapt rapidly to changing market conditions. Entrepreneurs are fundamentally optimistic. Minority suppliers know they can contribute “value-add” as well as job growth and healthy economic growth. And NMSDC’s corporate members continue to provide opportunities to those minority suppliers who perform with excellence.

Capacity-Building and Mentoring
United Parcel Service, Inc. noted its focus was on retention of minority suppliers in a difficult year. Two of its long-term MBE suppliers, E Smith Box and B & S Electric Supply, are participating in NMSDC’s Centers of Excellence (COE) program in a module launched by the Georgia Minority Supplier Development Council. E Smith Box is a box and packaging supplier that services UPS operations globally and expanded by opening a new plant in Louisville, Kentucky, in recent years. B & S

In 2009, the buying power of Blacks and Hispanics was $910 billion and $978 billion, respectively—larger than the entire economies of all but 14 countries in the world.
Selig Center for Economic Growth

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National Corporate Members

AFLAC Incorporated AGL Resources, Inc. AK Steel Holding Corporation APComPower, Inc. ARAMARK Corporation AT&T Inc. ATC Technology Corporation AXA Equitable Life Insurance Co. Abbott Laboratories, Inc. Accenture LLP Accor North America Acument Global Technologies North America Adecco, Inc. Aetna, Inc. Agilent Technologies, Inc. Aisin World Corporation Alcan Cable Alcatel-Lucent Alcoa, Inc. The Allstate Corporation The Altria Group, Inc. Amdocs Inc. Ameren Corporation American Airlines, Inc. American Cancer Society, Inc. American Electric Power Company American Express Company American Family Mutual Insurance Company American Honda Motor Company, Inc. American International Group The American Red Cross Amgen Inc. Anheuser-Busch Companies, Inc. Anschutz Entertainment Group Aon Corporation Apple, Inc. ArcelorMittal USA Inc. Archer Daniels Midland Company Armstrong World Industries, Inc. ArvinMeritor, Inc. The Auto Club Group Automatic Data Processing, Inc. Avaya Inc. Avis Budget Group, Inc. Avon Products, Inc. BBDO North America BIS Frucon Industrial Services BMC Software, Inc. BMW Group BNSF Railway Company BP America, Inc. Ball Corporation Bank of America Corporation Battelle Memorial Institute Bausch & Lomb Incorporated Baxter Healthcare Corporation Bayer Corporation Black & Veatch Blue Cross and Blue Shield Association

Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Massachusetts, Inc. Blue Cross and Blue Shield of Rhode Island Boehringer Ingelheim, Inc. The Boeing Company Bon Secours Health System, Inc. Booz Allen Hamilton, Inc. BorgWarner Inc. Robert Bosch LLC Boston Scientific Corporation Boyd Gaming Corporation Bridgestone Americas Holding, Inc. Bright Horizons Family Solutions, Inc. Brinker International, Inc. The Brink’s Company Bristol-Myers Squibb Company Broadlane, Inc. Brocade Communications Systems, Inc. Brown-Forman Company Burger King Corporation Burlington Industries, Inc. CB Richard Ellis Group, Inc. CBS Corporation CDI Corporation CDW Corporation CH2M HILL Companies, Ltd. CIGNA Corporation CITGO Petroleum Corporation CNA Financial Corporation CSX Corporation CVS Caremark Corporation Cadbury North America Campbell Soup Company Capital One Financial Corporation Cardinal Health, Inc. CareFusion Corporation Cargill, Inc. Caterpillar Inc. Catholic Healthcare Partners CenterPoint Energy, Inc. CenturyLink Chevron Corporation Choice Hotels International, Inc. Chrysler Group LLC Chubb & Son Cintas Corporation Cisco Systems, Inc. Citigroup Inc. Citizens Financial Group, Inc.

The Clorox Company The Coca-Cola Company Coca-Cola Enterprises, Inc. Colgate-Palmolive Company Collective Brands, Inc. Comcast Cable Communications Comerica, Incorporated Communications Test Design, Inc. Compass Bank Compass Group, North America Computer Sciences Corporation Computer Task Group, Inc. ConAgra Foods, Inc. ConocoPhillips Consolidated Edison Company of New York, Inc. Convergys Corporation Cooper-Standard Automotive, Inc. Corestaff Services, L.P. Corning Incorporated Covidien Ltd. Cox Communications, Inc. Crown Cork & Seal Company, Inc. Cummins Inc. DTE Energy Company Dana Corporation Darden Restaurants, Inc. DaVita, Inc. M.C. Dean, Inc. Deere & Company Del Monte Foods Company Dell Inc. Deloitte & Touche LLP Delphi Holdings LLP Delta Air Lines, Inc. Denny’s Corporation Denso International America, Inc. Denver Water Department Diebold, Inc. The Walt Disney Company R. R. Donnelley & Sons Company Dow Corning Corporation Dresser-Rand Duke Energy Corporation The Dun & Bradstreet Corporation DuPont Company EMC Corporation EQT Corporation Eastman Kodak Company Eaton Corporation Ecolab, Inc. Educational & Institutional Cooperative Service, Inc. Educational Testing Service Energy Future Holdings Entergy Corporation Enterprise Holdings Equifax, Inc.

Ernst & Young LLP Exelon Electric and Gas Company Exide Technologies, Inc. Express Scripts, Inc. Exxon Mobil Corporation Fannie Mae Federal-Mogul Corporation FedEx Corporation Firmenich, Inc. First Data Corporation Fluor Corporation Ford Motor Company G&K Services, Inc. GfK Custom Research North America GMR Marketing LLC GSD&M Idea City LLC Genentech, Inc. General Dynamics Corporation General Electric Company General Mills, Inc. General Motors Corporation GlaxoSmithKline Global Hyatt Corporation The Goldman Sachs Group Goodrich Corporation The Goodyear Tire & Rubber Company W.W. Grainger, Inc. Graybar Electric Company, Inc. Grubb & Ellis Company H&R Block, Inc. HD Supply, Inc. HSBC USA, Inc. Hagemeyer North America, Inc. Halliburton Company Hallmark Cards, Inc. Harley-Davidson Motor Company Harrah’s Entertainment, Inc. Harris Bankcorp, Inc. Havas North America Haworth, Inc. Health Care Service Corporation HealthTrust Purchasing Group H. J. Heinz Company Henkel of America, Inc. Herman Miller, Inc. The Hershey Company Hertz Global Holdings, Inc. Hewlett-Packard Company Hilton Worldwide The Home Depot, Inc. Honda of America Manufacturing, Inc. Houghton International, Inc. Humana, Inc. Hyundai Motor Manufacturing Alabama, LLC IAP Worldwide Services, Inc. ING North America Insurance Corporation Iberdrola USA

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Illinois Tool Works, Inc. Indiana University Intel Corporation InterContinental Hotels Group Interface Inc. International Business Machines Corporation International Flavors & Fragrances Inc. International Paper Company The Interpublic Group of Companies, Inc. JPMorgan Chase & Co. Johnson & Johnson Johnson Controls, Inc. Jones Lang LaSalle, Inc. KBR, Inc. KPMG USA Kaiser Foundation Health Plan, Inc. Kellogg Company Kelly Services, Inc. KeyCorp Kimberly-Clark Corporation Kohl’s Corporation Kraft Foods, Inc. The Kroger Company L’Oreal USA, Inc. Lear Corporation Liberty Mutual Group Eli Lilly and Company, Inc. Limited Brands, Inc. Lockheed Martin Corporation Lowe’s Companies, Inc. McAfee, Inc. McCain Foods USA, Inc. McCormick & Company, Inc. The McGraw Hill Companies, Inc. MGM Mirage, Inc. Mack Trucks, Inc. Macy’s, Inc. Major League Baseball Manpower Inc. Marathon Oil Corporation Marriott International, Inc. Mars, Incorporated Marsh & McLennan Companies, Inc. Marshall & Ilsley Corporation Mashantucket Pequot Tribal Nation MasterCard International, Inc. Mattel, Inc. MeadWestvaco Corporation MedAssets, Inc. Medco Health Solutions, Inc. MedImmune, Inc. Medtronic, Inc. Memorial Sloan-Kettering Cancer Center Mercedes-Benz U.S. International, Inc. Merck & Co., Inc. Meridian Medical Technologies, Inc. Messer Construction Company MetLife, Inc.

Michelin North America, Inc. Microsoft Corporation MillerCoors LLC Mitsubishi Power Systems Americas, Inc. Monsanto Company Morgan Stanley Motion Industries, Inc. Motorola, Inc. NCR Corporation NYSE Euronext, Inc. National Association for Stock Car Auto Racing, Inc. (NASCAR) National Grid USA National Railroad Passenger Corporation (AMTRAK) Nationwide Mutual Insurance Company Navistar International Corporation Nestlé USA, Inc. NetApp, Inc. New Breed Corporations New York Life Insurance Company Newell Rubbermaid, Inc. News Corporation Nicor Gas The Nielsen Company NIKE, Inc. NiSource Inc. Nissan North America, Inc. Nokia, Inc. Nordstrom, Inc. Northern Trust Corporation Northrop Grumman Corporation Novartis Pharmaceuticals USA Novation Novo Nordisk, Inc. Oakwood Worldwide Office Depot, Inc. OfficeMax Incorporated OhioHealth Oracle Corporation The PNC Financial Services Group, Inc. Pacific Gas and Electric Company J. C. Penney Company Penske Truck Leasing Co., L.P. Pepco PepsiCo, Inc. Pfizer Inc. Philip Services Corporation Pitney Bowes Inc. Premier, Inc. PricewaterhouseCoopers LLP Principal Financial Group The Procter & Gamble Company Professional Golfers’ Association of America Prudential Financial Purcell Systems Quest Diagnostics Inc. QWEST Communications International, Inc. Randstad North America, LLP Raytheon Company Realogy Corporation Reed Elsevier, Inc.

Regions Financial Corporation Robert Half International Inc. Rockwell Automation, Inc. Ryder System, Inc. SAS Institute, Inc. SH Group, Inc. Safeway Stores, Inc. Samsung Telecommunications America LLC Sara Lee Corporation Savannah River Nuclear Solutions LLC Schneider Electric USA Schreiber Foods, Inc. Scientific Games Corporation Scripps Networks, Inc. Sealed Air Corporation Sears Holdings Corporation Securitas Security Services USA, Inc. Sedgwick Claims Management Services, Inc. Sempra Energy The ServiceMaster Company Shell Oil Company Siemens Corporation Skanska USA Building Sodexo, Inc. Sonoco Products Company Sony Electronics, Inc. Southern California Edison Company Southern Company Southwest Airlines Company Southwest Gas Corporation Spherion Corporation Sprint Nextel Corporation Staff Management The Standard Register Company Staples, Inc. Starbucks Corporation Starwood Hotels & Resorts Worldwide, Inc. State Farm Insurance Companies Steelcase Inc. SunGard Data Systems, Inc. Supervalu Symantec Corporation TBWA\Chiat\Day TESSCO Incorporated TIAA-CREF The TJX Companies, Inc. TRW Automotive O.C. Tanner Company Target Corporation Telcordia Technologies, Inc. Tellabs, Inc. Temple-Inland, Inc. Tenneco Inc. Terex Corporation Thermo Fisher Scientific, Inc. 3M Company Time Warner Inc. Toshiba America Business Solutions, Inc. Toyota Boshoku America

Toyota Motor Engineering and Manufacturing North America, Inc. The Turner Corporation Tyco International Tyson Foods, Inc. URS Corporation Union Bank of California Union Pacific Railroad Unisource Worldwide, Inc. Unisys Corporation United Airlines, Inc. UnitedHealth Group, Inc. United Parcel Service, Inc. United Rentals, Inc. U.S. Bank U.S. Foodservice United States Postal Service United States Steel Corporation United States Tennis Association United Technologies Corporation The University of Chicago Hospitals University of Pittsburgh Medical Center The University of Virginia Unum Group Valassis Communications, Inc. Veolia Water North America Verizon Communications Inc. Visa U.S.A. Visteon Corporation Volkswagen Group of America, Inc. Volt Information Sciences, Inc. Volvo Trucks North America, Inc. Walgreen Co. Wal-mart Stores, Inc. Washington Gas Light Company Waste Management, Inc. Watson Wyatt Worldwide Weil, Gotshal & Manges LLP WellPoint, Inc. Wells Fargo & Company Wendy’s International, Inc. Whirlpool Corporation Wieden + Kennedy, Inc. Windstream Communications, Inc. Wisconsin Energy Corporation WorkflowOne The World Bank Wyndham Worldwide Corporation Xcel Energy, Inc. Xerox Corporation Yazaki North America, Inc. Yum! Brands, Inc.

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National Corporate Plus ® Members

Corporate Plus® is an unprecedented membership program of the National Minority Supplier Development Council for the highest caliber minority business enterprises that have the proven capacity to handle national contracts for major corporations. It is designed to recognize their national capabilities, bring them to the attention of all National Corporate Members, and expand their participation in the NMSDC Network. The success of this program is raising the level and perception of minority businesses to national prominence in corporate America.

Act • 1 Group Acro Service Corporation Adorno & Yoss, P. A. Aldelano Packaging Corporation All American Meats, Inc. Alliance of Professionals & Consultants, Inc. American Product Distributors, Inc. Aquent, LLC Artech Information Systems, LLC Aspen Group, Inc. Atlanta Peach Movers, Inc. B & S Electric Supply Co., Inc. Baldwin Richardson Foods Co. The Bartech Group Brooks Food Group, Inc. CB Tech Capsonic Group Carter Brothers, LLC Collabera, Inc. Colonial Press International, Inc. Corporate Creations Creative Printing Services, Inc. Diversapack, LLC Diversified Chemical Technologies, Inc. Electro-Wire, Inc. Etech, Inc. Evigna, LLC EWIE Co., Inc. FFP Global Freight Masters Systems, Inc. Freight Solution Providers Garcia Construction Group, Inc. Gonzalez Production Systems, Inc.

Gonzalez Saggio & Harlan LLP Goodman Networks, Inc. Ernie Green Industries, Inc. Group O, Inc. Heritage Vision Plans, Inc. Hightowers Petroleum Company The Ideal Group, Inc. Image Projections West, Inc. Inktel Direct Corporation Integrated Packaging Corporation Integrated Systems Analysts, Inc. Kánaak Corporation LaCosta Facility Support & Services Lapeer Metal Stamping Companies, Inc. Liberty Power Corp. López Negrete Communications, Inc. Luster Products, Inc. MPS Group, Inc. MW Logistics, LLC MagRabbit, Inc. MarkMaster, Inc. MasTec, Inc. The Matlet Group, LLC Mays Chemical Company, Inc. Ralph G. Moore & Associates D. W. Morgan Company, Inc. NuTek Steel, LLC OIA Global Logistics Printing Methods, Inc. Prystup Packaging Products Quality Packaging Specialists International, LLC River City Furniture Rose International, Inc.

Rush Trucking Corporation SBM Site Services, LLC SET Enterprises, Inc. SHI International Corp, Inc. J. F. Sato and Associates, Inc. Saturn Electronics & Engineering, Inc. Sayers40, Inc. Summit Container Corporation Superior Design International, Inc. Superior Maintenance Co. Synova, Inc. Syntel, Inc. Taylor Bros. Construction Co., Inc. Technology Integration Group (TIG) Telamon Corporation Telcobuy.com Total Technical Services, Inc. Trillion Communications Corporation Tronex Company Urban Settlement Services, LLC The Williams Capital Group, L. P. World Wide Technology, Inc. ZeroChaos, Inc. Zones, Inc.

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Special Recognition

Other Conference Underwriters
Blue Cross and Blue Shield of Louisiana R. R. Donnelley & Sons Company Goodrich Corporation IBM Corporation Marathon Oil Corporation Motorola, Inc. Promo Ad Specialties Spherion Corporation Sprint Nextel Corporation Xerox Corporation

The National Minority Supplier Development Council acknowledges with appreciation the following generous contributions:

Funding for Advanced Management Education Program
Bank of America Corporation Carlson Companies

Funding for International Program
Cisco Systems, Inc. Cummins, Inc. Exxon Mobil Corporation

Scholarships for Advanced Management Education Program
AT&T Inc. BP America, Inc. Capital One Financial Corporation The Coca-Cola Company Ernst & Young LLP Great Plains Minority Supplier Development Council Hilton Worldwide The Home Depot, Inc. Johnson & Johnson Kaiser Foundation Health Plan, Inc. Kellogg Company Kraft Foods, Inc. MasterCard International, Inc. James H. O’Neal/PepsiCo Foundation Endowed Scholarship Fund PricewaterhouseCoopers LLP Shell Oil Company South Central Ohio Minority Supplier Development Council Staples, Inc. Toyota Motor Engineering and Manufacturing North America United Parcel Service, Inc.

Funding for Business Mission to China
Cisco Systems, Inc. Dell Inc. IBM Corporation Verizon Communications, Inc.

2009 Dinner-Dance Chairman’s Reception Sponsor
Macy’s, Inc.

Other Dinner-Dance Contributions
Baldwin Richardson Foods Companies Ball Corporation Bay Corrugated Container, Inc. Brooks Food Group Prystup Packaging Products

2009 Conference and Business Opportunity Fair Special Event Sponsors
AT&T Inc. Alcatel-Lucent The Altria Group, Inc. Amgen Inc. Archer Daniels Midland Company BP America, Inc. Bank of America Corporation CVS Caremark Corporation Chevron Corporation Chrysler Group LLC The Coca-Cola Company ConocoPhillips Dell, Inc. Exxon Mobil Corporation Fannie Mae Global Hyatt Corporation Harrah’s Entertainment Hilton Worldwide Honda of America Manufacturing Johnson & Johnson Kelly Services, Inc. Kraft Foods, Inc. Macy’s, Inc. MasterCard International, Inc. Microsoft Corporation PepsiCo, Inc. Pfizer Inc. Raytheon Company Shell Oil Company Sprint Nextel Corporation Toyota Motor Manufacturing of America Tyco International, Inc. United Parcel Service, Inc. Verizon Communications Wal-Mart Stores, Inc. Wells Fargo & Company

Advertisements to Support Special Section on Minority Supplier Development in Fortune Magazine
AT&T Inc. Cargill, Inc. Macy’s, Inc. Shell Oil Company

In-Kind Contribution
Cell Phones and Service Sprint Nextel Corporation

Partial Funding for National Minority Business Program Managers’ Seminar
Fortune Magazine

Hosts for Regional Minority Business Program Managers’ Seminars
Atlanta United Parcel Service, Inc. San Ramon Chevron Corporation Pacific Gas and Electric Company

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National Network
INDIANA ALABAMA
Ms. Gloria Vail Interim President South Regions Minority Supplier Development Council, Inc. 4715 Alton Court Birmingham, Alabama 35210 (205) 957-1883 (205) 957-2114 Fax gvail@srmsdc.org

COLORADO

ARIZONA

Mr. Ron Williams President and CEO Grand Canyon Minority Supplier Development Council 6909 West Ray Road, Building 15 Suite 119 Chandler, Arizona 85226 (602) 495-9950 (602) 495-9943 Fax ron.williams@gcmsdc.org

Mr. Stan Sena President and CEO Rocky Mountain Minority Supplier Development Council 1445 Market Street, Suite 310 Denver, Colorado 80202 (303) 623-3037 (303) 595 0027 Fax stan@rmmsdc.org

Ms. Michelle R. Howell President and CEO Indiana Minority Supplier Development Council 2126 North Meridian Street Indianapolis, Indiana 46202 (317) 923-2110 (317) 923-2204 Fax mhowell@imsdc.org

KENTUCKY/WEST VIRGINIA
Mr. Ty Gettis President and CEO Tri-State Minority Supplier Development Council 614 West Main Street Louisville, Kentucky 40202 (502) 625-0136 (502) 625 0082 Fax tgettis@tsmsdc.com

CONNECTICUT

ARKANSAS/MISSISSIPPI

Mr. Mike Anderson Interim President Arkansas Mississippi Minority Supplier Development Council, Inc. 415 Main Street Little Rock, Arkansas 72201 (501) 374 7026 (501) 371-0409 Fax info@ammsdc.org

Dr. Fred McKinney President Greater New England Minority Supplier Development Council 4133 Whitney Avenue, Building 4, Box 2 Hamden, Connecticut 06518 (203) 288-9744 (203) 288-9310 Fax fmckinney@gnemsdc.org

LOUISIANA

FLORIDA

CALIFORNIA

Mr. Ron Garnett President San Diego Regional Minority Supplier Development Council 9903 Businesspark Avenue, Suite 105 San Diego, California 92131 (858) 537-2281 (858) 537-2285 Fax rgarnett@supplierdiversitysd.org Mr. John W. Murray, Jr. President Southern California Minority Business Development Council 800 West 6th Street, Suite 850 Los Angeles, California 90017 (213) 689-6960 (213) 689-1707 Fax jmurray@scmbdc.org Mr. Scott A. Vowels President Northern California Minority Supplier Development Council 460 Hegenberger Road, Suite 730 Oakland, California 94621 (510) 686-2555 (510) 686-2552 Fax svowels@ncmsdc.org

Mr. Malik Ali President Florida Minority Supplier Development Council 7453 Brokerage Drive Orlando, Florida 32809 (407) 404-6700 (407) 857-8647 Fax malik@fmsdc.org Ms. Beatrice Louissaint President and CEO Southern Florida Minority Supplier Development Council 9499 N. E. 2nd Avenue, Suite 201 Miami, Florida 33128 (305) 762-6151 (305) 762-6158 Fax beatrice@frmbc.org

Ms. Phala K. Mire President Louisiana Minority Supplier Development Council 400 Poydras Street, Suite 1350 New Orleans, Louisiana 70130 (504) 299-2960 (504) 299-2961 Fax pkmire@lamsdc.org

MARYLAND/DC

Mr. Kenneth E. Clark President and CEO Maryland/DC Minority Supplier Development Council 10770 Columbia Pike, Suite L100 Silver Spring, Maryland 20901 (301) 592-6700 (301) 592-6704 Fax kenneth.clark@mddccouncil.org

MICHIGAN

GEORGIA

Ms. Stacey Key President and CEO Georgia Minority Supplier Development Council 58 Edgewood Avenue, Suite 500 Atlanta, Georgia 30303 (404) 589-4929 (404) 589-4925 Fax Stacey@gmsdc.org

Mr. Louis Green President and CEO Michigan Minority Supplier Development Council 3011 West Grand Boulevard, Suite 230 Detroit, Michigan 48202 (313) 873 3200 (313) 873 4783 Fax lgreen@mmbdc.com

MINNESOTA

ILLINOIS

Ms. Shelia C. Hill President Chicago Minority Supplier Development Council, Inc. 105 West Adams, Suite 2300 Chicago, Illinois 60603 (312) 755-8880 (312) 755-8890 Fax shill@cmbdc.org

Mr. Steve Venable President Midwest Minority Supplier Development Council 111 3rd Avenue South, Suite 240 Minneapolis, Minnesota 55401 (612) 465-8881 (612) 465-8887 Fax svenable@mmsdc.org

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MISSOURI/KANSAS

OHIO

Mr. Lonnie C. Scott President Mid America Minority Supplier Development Council 777 Admiral Boulevard Kansas City, Missouri 64106 (816) 221-4200 (816) 221-4212 Fax Lonnie.Scott@mambdc.org Mr. James B. Webb President St. Louis Minority Supplier Development Council 308 North 21st Street, Suite 700 St. Louis, Missouri 63103 (314) 241-1143 (314) 241-1073 Fax jwebb@slmbc.org

Ms. Alexis Clark-Amison President Northern Ohio Minority Supplier Development Council 737 Bolivar Road, Suite 4500 Cleveland, Ohio 44115 (216) 363-6300 (216) 363-0003 Fax aclark-amison@nomsdc.org Mr. Barry Peel Interim President South Central Ohio Minority Supplier Development Council 100 East Broad Street, Suite 2460 Columbus, Ohio 43215 (614) 225 6959 (614) 225-1851 Fax bpeel@scomsdc.org

TEXAS

Ms. Karen Box President Southwest Minority Supplier Development Council 912 Bastrop Highway, Suite 101 Austin, Texas 78741 (512) 386-8766 (512) 386-8988 Fax karen@cstmbc.org Ms. Margo J. Posey President Dallas/Fort Worth Minority Supplier Development Council 2710 Stemmons Freeway Suite 900 North Tower Dallas, Texas 75207 (214) 630 0747 (214) 637 2241 Fax margo@dfwmbdc.com Mr. Richard A. Huebner President Houston Minority Supplier Development Council Three Riverway, Suite 555 Houston, Texas 77056 (713) 271-7805 (713) 271 9770 Fax richard.huebner@hmbc.org

NEVADA

OKLAHOMA

Ms. Dianne Fontes President Nevada Minority Supplier Development Council 1785 East Sahara Avenue, Suite 360 Las Vegas, Nevada 89104 (702) 894-4477 (702) 894-9474 Fax diafontes@nvmsdc.org

Ms. Debra Ponder Nelson President Oklahoma Minority Supplier Development Council 6701 North Broadway, Suite 216 Oklahoma City, Oklahoma 73116 (405) 767-9900 (405) 767-9901 Fax oklamsdc@aol.com

NEW YORK/NEW JERSEY

PENNSYLVANIA

Ms. Lynda Ireland President New York and New Jersey Minority Supplier Development Council, Inc. 330 Seventh Avenue, 8th Floor New York, New York 10001 (212) 502 5663 (212) 502 5807 Fax lireland@nynjmsdc.org Ms. Linda M. Terrell President Upstate New York Minority Supplier Development Council 85 River Rock Drive, Suite 113, MS #14 Buffalo, New York 14207 (716) 871-4120 (716) 871-3725 Fax linda.terrell@unyrmpci.org

Mr. Wade Colclough President Minority Supplier Development Council of Pennsylvania-New Jersey-Delaware 42 South 15th Street, Suite 1400 Philadelphia, Pennsylvania 19102 (215) 569-1005 (215) 569-2667 Fax ccolclough@msdc-panjde.org Mr. Alexander Nichols, Jr. President Western Pennsylvania Minority Supplier Development Council 425 Sixth Avenue, Suite 2690 Pittsburgh, Pennsylvania 15219 (412) 391 4423 (412) 391 3132 Fax nichols@wpmsdc.org

VIRGINIA

Ms. Tracey G. Jeter President and CEO Virginia Minority Supplier Development Council 200 South Third Street, Second Floor Richmond, Virginia 23219 (804) 788-6490 (804) 788-6491 Fax tracey.jeter@vmsdc.org

WASHINGTON

NORTH CAROLINA/ SOUTH CAROLINA

PUERTO RICO

Ms. Robyn Lake Hamilton President Carolinas Minority Supplier Development Councils, Inc. 1000 Seaboard Street, Suite B14 Charlotte, North Carolina 28206 (704) 549-1000 (704) 549-1616 Fax rhamilton@carolinasmsdc.org

Ms. Jacqueline Marie Matos President Puerto Rico Minority Supplier Development Council, Inc. VIG Tower, Lobby 2, Suite F 1225 Ponce de León Avenue Santurce, San Juan, Puerto Rico 00907 (787) 627-7272 No fax jacquelinematos@sdcpr.org

Mr. Fernando Martinez President and CEO Northwest Minority Supplier Development Council 320 Andover Park East, Suite 205 Tukwila, Washington 98188 (206) 575-7748 (206) 575-7783 Fax fmartinez@northwestmsdc.org

WISCONSIN

TENNESSEE

Ms. Cheri K. Henderson President Tennessee Minority Supplier Development Council 220 Athens Way, Suite 105 Nashville, Tennessee 37228 (615) 259-4699 (615) 259-9480 Fax chenderson@tmsdc.net

Mr. Floyd Rose President Wisconsin Iowa and Central Illinois Minority Supplier Development Council Post Office Box 8577 Madison, Wisconsin 53708 (608) 241 5858 (608) 241 9100 Fax wsdcrose@aol.com

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NMSDC Leadership
Mr. Robert E. Brewer Director, Corporate Administrative Services Southwest Gas Corporation Mr. Albert Chen Chairman and Chief Executive Officer Telamon Corporation

OFFICERS
CHAIRMAN Mr. Terry J. Lundgren* Chairman, President and Chief Executive Officer Macy’s, Inc. VICE CHAIRMAN Mr. Richard A. Hughes* Chief Purchasing Officer The Procter & Gamble Company TREASURER Mr. Serafin U. Mariel* Business Development and Community Relations New York National Bank SECRETARY Mr. C. Douglas Dixon* Attorney Adorno & Yoss, LLP PRESIDENT Ms. Harriet R. Michel*

Ms. Joyce Christanio Manager, Supplier Diversity Sprint Nextel Corporation Ms. Denise Coley Director, Global Supplier Diversity Business Development Cisco Systems, Inc. Ms. Greta F. Davis Executive Director, Supplier Diversity Time Warner Inc. Mr. T. Thomas Davis Vice President, Supplier Diversity Cartus Corporation Ms. Ana Diaz Director, Supply Chain and Global Corporate Procurement Burger King Corporation Mr. Michael E. Duda Supplier Relations and Development Manager Caterpillar Inc. Ms. B. Eadie Ferretti Senior Vice President Global Sourcing Executive Bank of America Ms. Benita Fortner Director, Supplier Diversity Programs Raytheon Company Ms. Donna Dozier Gordon Senior Director, Purchasing and Concept Support Darden Restaurants, Inc. Mr. Robert Halter Director of Prourement Services Purchasing and Supply Management Indiana University-Purdue University Indianapolis Mr. William P. Hartwig* Vice President, Supplier Relations and International Procurement Marriott International, Inc.

Mr. Fernando J. Hernandez Supplier Diversity Director Microsoft Corporation Mr. Richard D. Holder Vice President, Eaton Business System Eaton Corporation Mr. Sigmund E. Huber Director, Supplier Relations ChryslerGroup LLC Ms. Debra A. Jennings-Johnson Director, Supplier Diversity BP America, Inc. Ms. Tracey G. Jeter* President Virginia Minority Supplier Development Council, Inc. Ms. K. Michelle Sourie Johnson Director, Supplier Diversity Sourcing The Home Depot, Inc. Mr. Sidney Johnson Vice President, Global Supply Management Delphi Corporation Mr. Hubert Jones Director, Supplier Diversity ConocoPhillips Mr. Gary Kapusta Vice President, Procurement Indirect Goods and Services Coca-Cola Enterprises Mr. Fred Keeton Vice President, External Affairs and Chief Diversity Officer Harrah’s Entertainment, Inc. Mr. Bruce J. Kilkowski Vice President and Director of Procurement J. C. Penney Company, Inc. Ms. Patrice N. Knight Vice President, Operations Global Procurement IBM Corporation Mr. Reginald K. Layton* Director, Diversity Business Development Johnson Controls, Inc.

BOARD OF DIRECTORS
Mr. Mitch Adamek* Senior Vice President and Chief Procurement Officer PepsiCo, Inc. Ms. Jean A. Baderschneider Vice President, Procurement ExxonMobil Corporation Ms. Theresa Barrera Vice President, Supplier Diversity and Management Wal-mart Stores, Inc. Mr. Bill Boodry Manager of Procurement Liberty Mutual Insurance Group Ms. Johnnie B. Booker Global Director, Supplier Diversity The Coca-Cola Company

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Mr. Mariano Legaz Vice President, Supply Chain Services Verizon Services Operations Mr. Fred Lona* Senior Director, Supplier Diversity Hilton Worldwide Mr. Leo G. Lonergan Chief Procurement Officer Chevron Corporation Mr. James Mallard* Vice President, Global Procurement Services United Parcel Service, Inc. Mr. Henry S. Martin, Jr. Director, Supplier Diversity Development Visteon Corporation Ms. Lisa F. Martin* Senior Vice President, Worldwide Procurement Pfizer Inc. Mr. William G. Mays President and Chief Executive Officer Mays Chemical Company Ms. Ruby McCleary Director, Supplier Diversity United Airlines, Inc. Mr. Robert McCormes-Ballou Director, Supply Chain Diversity Office Depot, Inc. Ms. Farryn Melton Vice President and Chief Procurement Officer Amgen Inc. Ms. Rohena Miller President Niche Marketing, Inc. Mr. Steven G. Miller Senior Vice President, Strategic Sourcing The Walt Disney Company Mr. Robert Nelson Assistant Vice President, Division Manager Honda of America Manufacturing Mr. Armando Ojeda Director, Supplier Diversity Development Ford Motor Company Mr. Gregg Ontiveros Chief Executive Officer Group O, Inc. Mr. Bruce W. Perkins Director, Supplier Diversity Siemens Corporation Mr. Floyd W. Pitts Senior Vice President and Chief Diversity Officer The American Red Cross Ms. Gloria D. Pualani Corporate Director, Socio-Economic Business Programs Northrop Grumman Corporation Ms. Terri L. Quinton* President Q2 Marketing Group Mr. Roderick Rickman Chairman Rickman Enterprise Group LLC Mr. Dan Robinson Manager, Global Purchasing Market Access Xerox Corporation Ms. Joan R. Robinson-Berry Director of Supplier Diversity The Boeing Company Mr. Guy Schweppe Vice President, World Wide Procurement Global Materials Dell Inc. Ms. C. Lynn Scott Executive Director, Supplier Diversity and Procurement Alcatel-Lucent Mr. James Sheehy Vice President, Procurement MillerCoors, LLC Mr. D. K. Singh Senior Vice President, Enterprise Procurement ConAgra Foods, Inc. Mr. Skip Skivington Vice President, Supply Chain Management Kaiser Foundation Health Plan, Inc. Ms. Connie W. Smith Director, Supplier Diversity Development Altria Client Services, Inc. Mr. Hilton O. Smith Senior Vice President, Community Affairs Turner Construction Company

Mr. Richard Spoor Senior Vice President, Global Procurement Merck & Co., Inc. Mr. Anand Stanley Director, Supplier Development United Technologies Corporation Mr. Shelley Stewart, Jr. Senior Vice President and Chief Procurement Officer Tyco International Inc. Mr. Mark Stolarczyk Vice President of Strategic Sourcing MGM Mirage Mr. Gene Tabor General Manager, Purchasing, Supplier Relations, Diversity, Risk Management Toyota Motor Engineering and Manufacturing North America Mr. Ruben Dario Taborda Vice President, Comprehensive Care Procurement, Supplier Diversity Johnson & Johnson Ms. Renee Taylor Manager, Supplier Diversity Milwaukee Public Schools Ms. Denise R. Thomas Director, Corporate Supplier Diversity The Kroger Company Ms. Kathleen Trimble Director, Supplier Diversity Robert Half International, Inc. Mr. Callen C. Vickers Senior Director, Purchasing Nissan North America, Inc. Ms. Linda A. Ware Manager, Supplier Diversity General Motors Corporation Ms. Janice B. Williams-Hopkins Program Manager, Supplier Diversity and Development United States Postal Service Mr. Ron Woll Vice President, Supply Management Halliburton Company Ms. Francene Young Vice President, Diversity and Talent-US Shell Oil Company *Executive Committee Members

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Cover Art: “37528” by Frank Bowling, 32” x 29”, Acrylic on canvas, 2008. Courtesy of Spanierman Modern Gallery.

National Minority Supplier Development Council, Inc.® 1359 Broadway, Tenth Floor, New York, New York 10018 212.944.2430 fax 212.719.9611 www.nmsdc.org

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