Making a connection with Fortune 500 companies is challenging, and sometimes even a bit mysterious.
Helping to demystify the process of corporate procurement, the BIZ Procurement Series periodically talks with corporate supplier diversity representatives who participate on the NGLCC's Procurement Council, and taps into their insights on developing a business relationship with corporate America.
In the latest edition of interviews, Philip DeVliegher, senior manager of supplier diversity for Marriott, offers advice to potential suppliers on how recently certified LGBTBEs should approach a potential corporate customer, what Marriott is looking for in its first- and second-tier suppliers and why having mentors to guide them is an important part of the process.
BIZ: What is Marriott's philosophy about supplier diversity and why does it have such a strong program?
PD: Our understanding of the importance of small, diverse businesses actually goes back to our company's beginnings as a nine-seat root beer stand in Washington, D.C. more than 83 years ago. Our commitment, not just to supplier diversity, but to diversity and inclusion as a whole continues with JW Marriott, Jr. and throughout every level of our organization. Supplier diversity not only maintains economic growth, but it represents our customers and associates and strengthens the communities in which we operate.
BIZ: What is Marriott looking for in its first-tier and second-tier vendors/suppliers?
PD: Regardless of size and diversity status, we are always looking for suppliers who can provide high-quality goods and services, outstanding customer service, innovation, flexibility and competitive pricing, and who possess a high level of business ethics and values.
BIZ: What would you advise a business that has just become certified as it considers approaching a Fortune 500 company?
PD: I would offer four key points of advice. First, truly understand your company and its capabilities. Second, align those capabilities appropriately with potential corporate customers. In addition, design your approach to each of your potential corporate customers and understand how to navigate through their respective organizations. Finally, and most importantly, build those relationships. This is not an overnight process. In fact, it may take months or even years to secure a contract, but know that those relationships are the foundation to building your business.
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?
PD: At Marriott, certified businesses should reach out to me first. I can then advise them on the best approach moving forward and potentially direct them to decision makers within our organization.
BIZ: Are there pitfalls that new businesses need to avoid?
PD: I believe the major pitfalls would be not following those four points of advice I mentioned. One will certainly make mistakes along the way, but if relationships have been built and one has mentors to guide him/her through the process, hopefully those pitfalls will be kept to a minimum.
BIZ: Do small businesses really have a chance to work with Marriott?
PD: They absolutely do. But keep in mind, as large companies continue to rationalize their supply chains, there are growing opportunities outside of first-tier relationships. Small businesses should not limit themselves and should seek out second- and third- tier opportunities, as well as opportunities to collaborate with other small businesses.
BIZ: Does NGLCC certification really matter, especially if business owners feel that they already provide a great product or service?
PD: Certification and re-certification really do matter. It is the "stamp of approval" that can make all the difference in securing a contract.
