Supplier Gateways Virtual Symposium Notes

Small and Local Businesses in Supply Chains

Introduction

  • Carmen West introduces the topic of the indispensable role of small and local businesses in the nation's supply chain.
  • Small businesses constitute 99.9% of all US businesses and employ over half of the private sector.
  • They bring agility, innovation, and resilience to supply chains.

Importance of Resilient Supply Chains

  • Recent disruptions have exposed vulnerabilities due to over-reliance on distant suppliers.
  • Integrating small suppliers diversifies sourcing, reduces risk, and enhances flexibility.
  • Local and small suppliers offer a buffer against uncertainties and are nimble.

Innovation and Specialization

  • Small businesses are at the forefront of innovation and specialize in products that larger suppliers can't offer.
  • Close proximity to end-users allows for swift adaptation and customer-centric solutions.
  • Supporting small and local suppliers is beneficial for communities, contributing to job creation and economic development.

Challenges and Solutions

  • Challenges include access to capital, complex procurement processes, and meeting compliance standards.
  • The US Chamber of Commerce advocates for policies supporting small businesses and providing resources for them to thrive.
  • Website: uschamber.com and uschamber.com/co.

Discussion Points

  • Barriers faced by suppliers and buyers.
  • Strategies to incorporate small and local suppliers.
  • Creating a more inclusive and resilient supply chain ecosystem.

Payment Terms

  • Payment terms are difficult to manage for small businesses working with larger corporations.
  • Corporations are trying to reduce payment terms to net 60 or net 30.
  • An executive order during the Obama administration required the federal government to pay in a shorter time, influencing corporations to follow suit.

Strategies for Small Businesses

  • Ensuring readiness, vetting, and having necessary certifications are crucial for small businesses.
  • Experience is essential for entering corporate supply chains.
  • Partnerships and teaming arrangements are viable options for smaller businesses to participate in larger contracts.
  • Teaming arrangements are contracts between small businesses outlining specific contributions from each party.
  • Acquiring businesses, especially those dropping out of the ecosystem, can provide an entry point into larger supply chains.
  • SBA financing can be used to acquire assets and prepare for corporate supply chains.

Engaging Suppliers

  • The US Chamber of Commerce will launch a supply chain initiative to address the need for better engagement with suppliers.
  • Responding to suppliers and acknowledging receipt of their information should be industry standard.
  • Each corporation has its own buying cycle and process, making it difficult to provide a universal understanding of the buying cycle.
  • The Chamber's program will provide an understanding of this process.

Resources for Women-Owned Businesses

  • Registering in Supplier Gateway is one of the best ways for women-owned businesses to find opportunities.
  • Supplier Gateway is the world's largest business organization with over 3 million members.
  • Profiles on Supplier Gateway should be detailed and accurate, including certifications, NAICS code, and SIC code.

Overcoming Hurdles

  • Assistance in overcoming hurdles for identifying smaller and local suppliers.
  • Impact of industries on small businesses.
  • Examples of industries represented: Staffing services, data analytics and consulting, beauty manufacturing, and legal services.

Solutions and Mitigation of Risks

  • Addressing constant changes in overcoming revenue size, scale, and payment terms requested by large corporate customers and challenges to small businesses.
  • Teaming and partnering in order to solve the risk and payment terms challenges.
  • Negotiating better payment terms. Eric is on Net 45 and negotiates payment terms for the discount.
  • Addressing supplier consolidation by larger corporates as a constant pushback.
  • Scenario planning is important for startups. The startup must have data to be organized.
  • Mitigating risk is very important and for this small businesses have to center Tammy's voice because as a small business owner with expertise she can mitigate those risks.
  • Cultural transformation requires integration, transparency, and communication to solve problems. In this integration, it is important to include everyone and provide them with what they need.
  • Organizational change is needed for success. Transparency is needed to make fast decisions. Also, it is super-important to have a very effective communication and transparency. Do not be afraid of the change. If things are not working, do not be afraid to pivot.
  • Value of community and the value created community, the way of making it authentic so that everybody is included and everybody offers what they have to offer.
  • Transparency needs to come from the top so that the small businesses have trust.
  • Exercising critical thinking will give you strength to improve on the business.
  • Customer discovery is one of the very important parts of the business. Always be in touch with customers and people to come up with better solutions.