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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Oct. 2, 1985)
Doing business with corporations Small business sustains economy bvOnmeH Martin Despite difficult business challenges, ( orporate America is making serious e fforts to huild meaningful relation ships with minority and women-owned businesses they cannot guarantee sue cess fo r m in o rity and women enter prise — no one except the entrepreneur can do that W hat dies can do is utilize minority and women suppliers to help bring these groups in to the main stream ol business. The thing to remember is major cor porations choose their vendors and suppliers w ith care That's why it is important to know what Fortune 500 companies are looking tor when they are on the look mit tor qualified firms. I he com m itm ent to use m in o rity and women-owned businesses comes fro m co rp o ra te lo p brass. The re s p o n s ib ility fo r fin d in g them rests w ith the C o rp o ra te P urchasing Manager. It stands to reason this in dividual is only going to recommend suppliers w ith innovative ideas, and the fin a n cia l strength to back them up ( orporations that do business na tionally are continuously placing or ders, expediting, w o rkin g w ith ma terial control and that's only halt the story I he other halt is marketing their business, negotiating major con tracts, setting long-range goals and ob jectives, forecasting and strategic plan rung I hat may sound impressive, but it is also an awesome decision making responsibility. Supplier capabilities not only should match p ro d u ctio n problem s, but preferably should co n trib u te to the company 's long-range plans Most purchasing managers are looking for vendors who have long term potential. Purchasing is considered an im portant strategic function. Since pur chasing departm ents are attuned to both the day-to-day operation o f the company's business and future goals, vendor selection is based on a number ol key performance factors: 1 Quality 2 — Price 1 Delivery 4 Service M aking in itia l contact w ith the responsible procurement officer is only the beginning I he purchasing agent w ill be interested in learning more about your capabilities Questions most frequently asked are: Can you supply products o f appropriate quality level? W hat is your company's finan cial a b ility to handle the business you're soliciting'’ What kind o f reputa tion do you have in the marketplace with existing or previous customers? In the past, cost may have been the overriding concern for many corporate purchasing managers. But times have changed. In today's com petitive en viro n m e n t. c o rp o ra tio n s are more quality conscious. Vendors who are supplying prixluctv or services are ac tually considered " p a r t” o f the com pany fo p brass expect the same kind o f professional qualifications from po tential suppliers as they do from po tential employees. A lte r a ll, no one wants to litre a worker who can’ t per form. O l the fo u r factors m in o rity and women owned businesses should dem onstrate, q u a lity and re lia b ility are by far the most important. Without a doubt, performance is the key to suc cess. In the buying ot goods and serv ices, there is a move tow ard e n tre preneurial leadership As consumer demands fo r im proved quality and service intensifies, m ajor companies are constantly lixiking for new devel opment and new methixls which w ill provide greater efficiency and econ omy. I he primary objective is to work closely with suppliers to assist in im proving product quality and produc tivity. As m ore and m ore c o rp o ra tio n s look to develop a sense o f partnership with businesses owned by m inorities and women, higher standards o f per form ance w ill insure m u tu a l prosperity in the years ahead A sup plier must lx- prepared to demonstrate its capabilities when the purchasing manager reviews its basic business data P o te n tia l new suppliers are generally requested to subm it the following information Data pertaining to the lin a iici.il strength ol the business, e g , an an nual report or income statements lor the past six months Specific details on the types ol products or services supplied D escription o l fa cilitie s and equipment used in Iu rlu sh in g these products and services, including lacil O i n w f t M t l'tin ity lix a tio n and size, as well as capa city limitations considerations I urrelit customer and the d u ra tio n o f the su p p lie r’ s business re la tionships I he supplier should be prepared to present and discuss this information in its initial meeting with the buyer U nderstanding the m in o rity p u r chasing program fro m a corporate point ol view is an important step that w ill im prove the a b ility o f m in o rity and women-owned companies to cxmipcte successfully in today's market place fO nnie K M artin is D irector o f the ( incinnali Minority ( ontraclors business Isu.stunce C o rp o ra tio n l( V ( /<•!( tin ( incinnali. Ohio.) We lake a lot o f things for granted —runnine water, the daily newspaper, dcctricity, the corner drug store — the list is long. We seldom stop to realize however, how much we need or relv on those things we take for granted until we have to do without them. One o f the d iffic u ltie s in creating public awareness o f how im portant small business is in sustaining local and national economic strength is, in large part, due to the fact that because small businesses consistently and reliably meet our daily needs, we tend to take them for granted and we lose sight o f their importance. Most o f us work fo r a small busi ness. We buy our houses, cars, clothes and household appliances from small businesses When we need the toaster, 1 V o r the ch ildren's bikes repaired, we call on our neighborhood small business We get our clothes cleaned and our h a ir styled at o u r fa v o rite local shop Ih e watch for our son or daughter's graduation is available at the lo ca l je w e le r's and o u r a u d io , video and com puter needs are con vemenlly available " fro m a store near y o u " as a favorite advertising phrase goes. But what it we had to call or go to IX-troit to buy a car ’ What if we had to go to the plant ot one ot the major pharmaceutical manufacturers to buy aspirin or the prescription Ihe d ix to r ordered for our sick child'* W hat it we had to go to Georgia, W ashington or Oregon to look al and buy the lumber we rxxxl lor our home repair jobs? Possibly only it these exaggerated examples became realities w ould we understand the true value ot small business And this in no demeans or denigrates the value and im portan ce o f big business w ithout which our econom y co u ld not survive Hut through T V comm ercials and other media attention which centers on the ebb and (low o f activity in these busi nesses. many o f the "F o rtu n e 500" names are well known to us and ix - cupy our a tte n tio n when we th in k about America's business community I ocal small businesses do not enjoy the same media a tte n tio n and con sequently do not rate high in the public consciousness, but their importance is ju st as v ita l to o u r econom ic wellbeing I he National Small Business Asso elation (NSB) lias compiled a basis of com parison which we believe gives scope and dim ension to small busi ness’ value and importance last year, small businesses provided a livelihood tor over halt our popula lio n and jobs tor 4 ' percent ot the nation's total, non-farm w orkforce I hat meant jo b s fo r over 4.1 million -1 rnencans Slated another way, jobs provided by small business were • let) limes greater than all the jobs in the lederal government; • Three limes greater than all the jobs in state and local governments; • I hree tunes greater than the total number ot jobs ot the " I ortune ««»” , and • Ihirty seven times greater than the total number ot jobs ot the Big 1 hree automobile manufacturers! I ast year small businesses also pro duced W percent ot our Gross Nation al Product lilts translated to one trillion tour hundred billion dollars — S1,4< ■).«■■ r.r ■ x i.r ■■ r Put in perspective, that was •Six tunes greater than the cost ot national defense; • I ive tunes more than total health care costs, including social sec u rity . medicare and medicaid. • I tiu te e n tu n es e re.ile i Iti.......t il e est on the debt. • I h u te e n tunes greater than in come security costs, that is, retirement and disabilitv payments and assistance to tlie aged and disabled; •F ifty two times greater than the cost ot all ot our education programs, •t )nc and one half times greater tliurt total expenditures ot the I9K4 fed eral budget! Viewed in this broader perspective ot its relative value to the nation, small business can begin to receive the atteri lion it needs and ments to grow, pros per and continue as a bulwark ot the nation's economy tt e need small business We need the dtversiiv small tirm s prov ide Hl broadening a com m unity's economic base W c need the tra d itio n a l values that small business alone provides in preserving com petition, an independ ent m arket economy and our Irei" enter puse system which allows Amer leans a unique freedom ot choice m the product they buy and the prices they pay; and perhaps most ot all, we need small businesses' productive ca pacily and the lot's they generate each year. You need your local small busi nesses and they need vou. I ontuiue to support them Women are new entrants in stock market buying w lio bought equity securities lor the first tune between I9KI and l9K.t were women Surprising? It shouldn't lx Over 42 m illio n Americans currently own equity shares and lulls hull ol those owners are women In la d . according Io a l9Kt New York S lix k I xchangc survey, the typical new shareholder is ■i I emale, U sears ol age. married, and employed lull time I he I mal quali lic it ion employed lu ll-tim e — is the key Ih irty two per cent o f shareowners firs t acquire shares through employee purchase plans W ith women m aking up al most hall o l American labor, women's im portance in the fin a n cial market place lias grown as well I r a d it io n a lly , w om en have been saver o rie n te d I lies have tended to shv awav Iro m speculative investing, preferring sale vehicles that o ile r cupi t.il preservation In th e I 9 " l k , m utual tun d groups p r o fite d Iro m this a m tilde, as mans women with new con trol oyer money were attracted by the saletv and high yields avalahle through money market funds, particu l.uly government only money funds Almost halt ol the assets ot Ameri ca n households .lie now in w lial the Investment ( ompany Inslituie defines .is ' sale " uivesimenls bank deposit accounts and money market funds I he other hall $2 6 trillion is divided between debt and equity in strum ents. And here women a r e changing then tra d itio n a l a ttitu d e ., broadening their portfolios to include stocks, bonds, and tax shelters, as well as money market tund shares. According Io the New Y o rk Slock I xchange. wom en m aking then lu s t securities purchases usually a n tic i pate m a k in g a d d itio n a l slo ck p u r chases during the next year R.A. Hatch Co P .0. Box 6179 Bend, OR 97708 i-- The R.A. HATCH CO is an equal oppor tunity employer and seeks applications and sub bids for m inority and women owned enterprises (503) 238 3646 MBE/WBEs interested in sub-contracting should contact the R.A. HATCH CO. now, providing information on your Specialties and Capabilities for potential future contracting opportunities. Page 6 Section II Portland Observer Octotier 2, 1965 ■ • •
