Many women know that corporations have supplier diversity departments whose whole purpose is to identify minority and women vendors. Although these corporations spend millions of dollars seeking nationally-certified women-owned businesses from which to purchase, most women haven't been able to capitalize on this opportunity.  Let's look at why these programs exist and how you can take advantage of them.

Why do corporations go to such great lengths to identify women-owned suppliers? The reasons differ from corporation to corporation, but in the five years I've focused on this market, I've identified a few driving forces for suppler diversity.

1.      Women are key customers.  Many pharmaceutical, auto and consumer product corporations fall into this category.  These corporations know that women are the most significant purchasers of their products, and using women entrepreneurs as vendors enables them to better understand, provide for and attract women customers.  Involving women vendors in their product development, packaging, marketing and advertising gives these companies an inside track to their key buyers.  An interesting example of this is Harley-Davidson, whose sales had historically been driven by men. Over the past several years, however, Harley has discovered that women are their fastest growing market, and that they must pay attention to women if they want to continue to earn their loyalty.

2.      Corporations need women subcontractors to win contract awards.  Many government and corporate organizations encourage, and often require, their suppliers to include women-owned vendors as suppliers. And many corporations carry this one step further and require diverse subcontractors for specific contracts. For example, Volvo Trucks seeks women and minority-owned vendors as a condition of their contract to provide vehicles to the US Postal Service.  Many organizations use women entrepreneurs as subcontractors to gain major corporate and government contracts, making such subcontracting one of the biggest opportunities for women entrepreneurs.

3.      Working with women-owned businesses provides a competitive advantage. Corporations recognize that women-owned vendors provide a competitive advantage and make good business sense.  For example, diversity procurement is a key business strategy for JC Penney Company that states supplier diversity "supports economic opportunities while enhancing (JC Penney's) competitive viability." This ties back to the fact that women are JC Penney's key customers.

Of course these companies also want to work with us because it's the right thing to do. They understand that a healthy society depends on allowing all to participate in economic growth. But their overall decision to use women-owned vendors is driven by hard business reasons, and that's good news.  These companies are looking at their bottom line when they contract with us because we are their key customers, because we help win contract awards and because we provide them with a competitive advantage.

So what's the secret to using certification to break into these corporations?

For every success story in supplier diversity, there seem to be a dozen women standing on the sidelines in frustration.  So, what's the secret to capitalizing on your status as a woman-owned business?

As part of a complete marketing and sales plan, certification can be an effective way to make contacts and create short cuts.  But certification is not an "if-you-build-it-they-will-come" solution.  Like any business endeavor, opportunities to capitalize on your certification hinge on your ability to research, plan and execute.

Begin by selecting a few target companies on which to focus. Do your homework and understand how they move from identifying a customer need to delivering a final product or service to that customer.  Know what they are celebrating. Understand their challenges. Learn their jargon. Understand their current supply chain and learn all you can about their organizational structure.

It's no secret that almost every corporation has drastically restructured in recent years. They've outsourced entire departments; they've collapsed levels of management; and they continue to look for ways to eliminate non-core segments.  Look for changes that may have left holes. In some instances, those holes have been plugged temporarily; but is there a way you can offer a more permanent, more cost-effective solution?  Rather than asking the standard question of, "How can we gain business with this company?" Always be thinking, "How can we contribute to the success of this company?"

To contribute to their success, you must be able to articulate your value add. It is the purchasing officer's right to ask you "How are you different?" It is your responsibility to respond without using worn-out phrases such as "customer service," "quality" or "lowest price."  Those terms, and others like them, are not differentiators, they are the price of entry. Differentiators are items such as turnaround time, unique packaging or strategic alliances.  Zingers like these will enable you to stand out from the competition and gain the business.

Once you've completed your research and determined your approach, develop  and execute a communication plan.  At this point, many women neglect the diversity procurement officers of the companies with which they are already doing business. It's particularly important to contact those individuals if they don't know you and may not be counting the "spend" that your company is doing with their company.  You should introduce yourself to them and find out how the business you are currently doing with their company can be added in to help them meet their diversity procurement goals.

So there you go. Research, plan and execute. There is no magic formula, just hard work. But, if you want to play the game rather than watching from the sidelines, this is the way to get in there.

To learn more about corporate certification, go to: www.WBENC.org  or http://www.womanbusinessowner.com/pdfs/press/fast_50.pdf

This Month's Business Growth Book

Financing Your Own Business by Jan Norman - If you've ever experienced problems with cash flow, and what woman entrepreneur hasn't, you'll find some interesting and creative solutions in this book.

Jan Norman profiles real-life small-business owners as they determine the best strategy for raising capital to start, grow and sustain their businesses. Whether you're a rookie or a seasoned entrepreneur, you will benefit from reading this real-life financial advice that Norman has collected from 101 successful entrepreneurs.

Copyright 2005 by Mary Cantando. All rights reserved.

Mary welcomes your comments, complaints or compliments.

Contact her at www.WomanBusinessOwner.com