Making a connection with Fortune 500 companies is challenging, and sometimes even a bit mysterious. The BIZ Procurement Series is the National Gay & Lesbian Chamber of Commerce's® (NGLCC) effort to demystify this critical process.
In this periodic feature, we talk to the corporate supplier diversity representatives who participate on the NGLCC's Procurement Council, and tap into their insights about the process of developing a business relationship with corporate America.
In the latest installment of the Procurement Series, Mattel's senior director of global procurement, John Ballotti, offers his insight into what Mattel looks for in its suppliers, reveals who potential suppliers should first turn to if interested in working with the company, and explains why bad-mouthing the competition will get businesses nowhere.
BIZ: What is Mattel's philosophy about supplier diversity and why does it have such a strong program?
JB: Mattel recognizes the importance of supplier diversity and is committed to ensuring that it is an integral part of our global procurement processes, consistent with established corporate goals. Mattel believes that the success of the organization and our community depends on enabling minority- and women-owned business enterprises (MWBEs) along with lesbian, gay, bisexual and transgender business enterprises (LGBTBEs) to share in the nation's economic growth. Our commitment is to maximize MWBE and LGBTBE participation through the development of mutually beneficial relationships with these firms.
Mattel is also committed to providing opportunities to certified MWBEs and LGBTBEs to participate as partners and suppliers of goods and services as part of our corporate procurement process. We encourage participation and support of supplier diversity by major suppliers to Mattel who are not minority-owned businesses. Our policy of encouraging and assisting MWBEs and LGBTBEs is a reflection of Mattel's commitment to diversity where we work and live. The commitment is emphasized by the highest level of management and is communicated to all employees.
BIZ: What is Mattel looking for in its first-tier and second-tier vendors/suppliers?
JB: Mattel is looking for suppliers that can provide the best quality, service, price, technology and innovation.
BIZ: What would you advise a business that has just become certified as it considers approaching a Fortune 500 company?
JB: My advice to companies approaching any potential customer is to learn and listen before speaking. Find out everything there is available about the company—from its products, what it buys, to the organizational structure. Listen to what the buyer has to say about the company's needs and timing of purchases.
BIZ: What is the best point of entry for certified businesses? Should they reach out to you first or to the department responsible for contracting?
JB: The best point of entry for any supplier is the procurement department. Circumventing the purchasing department leads to confusion, misinformation and the potential for lost business opportunities.
BIZ: Are there pitfalls that new businesses need to avoid?
JB: Establishing relationships is all about building trust. Not listening, being overly aggressive, bad-mouthing the competition and failure to follow up are among the most common pitfalls.
BIZ: Do small businesses really have a chance to work with Mattel?
JB: Yes, small businesses do have a chance to work with Mattel. Mattel awards business based upon supplier suitability, quality, price and delivery. A supplier that is capable of doing the work and has the best quality, service, price, technology and innovation, regardless of size, will work with Mattel.
BIZ: Does NGLCC certification really matter, especially if business owners feel that they already provide a great product or service?
JB: NGLCC certification is important because it is a validation of the supplier status. It removes any doubt and provides confirmation of Mattel's commitment to diversity.
