Aboriginal, minority supplier council launched

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Big business is solidly behind a new initiative to include Aboriginal and visible minority suppliers in their materials procurement chain, because it makes good business sense to do so, according to one of two Aboriginal board members of the newly launched Canadian Aboriginal and Minority Supplier Council (CAMSC).

CAMSC, based on an American supplier council model, was launched Oct. 12 in Toronto and opened its corporate headquarters in Markham, Ont. Nov.1. It hopes to ensure Aboriginal and minority businesses get fair consideration when corporate buyers are spreading their purchasing dollars around.

Bob Dickson, a member of Lac Seul First Nation,Ont. told Windspeaker he became aware of the National Minority Supplier Development Council in the United States through his former job, and had wondered if a similar organization could be set up in Canada.

Until last June, Dickson was general manager of Niigon Technologies, an injection molding business in Moose Deer Point First Nation, Ont. that is now a member of CAMSC. More than two years ago, while on business for Niigon, he discussed his thoughts with Jethro Joseph, head of minority procurement at Daimler-Chrysler in the U.S.

"He really took this on ... and it was through his leadership, really, that made this happen. I was with him from day one; he and I were the original people.

"(CAMSC) offers a huge opportunity for Aboriginal business in Ontario ... What companies are saying is that they want minorities and Aboriginal businesses as a part of their supply chain. And they're saying that suppliers would be coming to Pepsi-Cola, for example, and Pepsi would be asking them, 'What sort of minorities do you have in your supply chain? Who is involved in your business at any part of it?' And they'll want to see some sort of Aboriginal or visible minority part in somewhere."

Dickson said it had nothing to do with political correctness that big companies were courting Aboriginal and minority suppliers. It affects their bottom line.

"It makes good business sense. These businesses are smart enough to know what their market looks like and it's diversifying incredibly, Toronto being the most diversified city in the world.

"You look at what the black population is like in the United States, or the Hispanic population happening there, if they have suppliers who are from that community, voila! Can you imagine not having black [people] as part of a supply chain at Daimler-Chrysler? It's not acceptable ...They want to be in that marketplace, so it's best to try and serve that, give them some return here."

Orren Benn is CAMSC's president.

Benn said it took 20 months to set CAMSC in motion as a supplier council.

"This initiative was started by major corporations in the U.S. ... that have significant subsidiaries right here in Canada."

He said these corporations funded CAMSC's start-up without government money.

"CAMSC is an extension of over 35 different supply councils that exist in the United States. It's part of the NMSDC network, the National Minority Supplier Development Council. They have over 3,500 corporations and 15,000 suppliers. They have a database, so a supplier who joins CAMSC will be immediately added, not only to the CAMSC database, but will also be added to the database of NMSDC in the U.S.

"So when their corporate buyers from these corporations are looking to link up with a supplier, they go to the database, and if you're in the database, obviously, you have a much better opportunity.

"The second point is that there are quite a few suppliers in the United States who are quite large who frequently get RFPs (request for proposals) which extend into Canada. They may be supplying a Xerox or an IBM or a General Motors in the U.S. and they get a request from these corporations as to whether or not they could extend their services into Canada, so they may be looking for a Canadian strategic alliance or partner. I've gotten quite few requests, especially in the IT industry from companies that are looking to partner with Canadian Aboriginal or minority companies. So essentially, what we're doing is we're making it a seamless transition in terms of trade between Canada and the United States for private-sector companies."

Fourteen corporations in addition to Xerox and Dickson's former employer, Niigon, are members of CAMSC to date: Alberici Constructors, Canada Pacific Railway, Cisco Systems Canada, Coca-Cola Bottling Company, Corporate Express, Daimler-Chrysler Canada, Hewlett-Packard Canada, IBM Canada, Navistar International Corporation Canada, Office Depot, Pepsi-Cola Canada, RBC Financial Group, Toyota Canada, and Waste Management of Canada.

Benn said all but one of CAMSC's seven board members are Canadian and Jocelyn Soulodre, president and CEO of the Canadian Council for Aboriginal Business, is the second Aboriginal person on the board. Doug Lord, president and CEO of Xerox Canada, is chairman.

Benn, who had only been on the job a month at the time of our interview, said he had not visited any Aboriginal communities yet but "as part of my job, I intend to do that, for the certification process. Prior to an Aboriginal or a visible minority company becoming certified, it requires an on-site inspection to ensure ownership, location, effective management control, all due diligence. And beginning in January, we will be doing exactly that."