DivTRAK StandardA Newsletter devoted to Diversity Suppliers Issues
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IN THIS ISSUE:
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  Feature  
arrow Build vs. Buy: Get the Whole Story

 
Case Study  
arrow DivTRAK®: Doing the Impossible

 
ROI  
arrow Save Money with DivTRAK®

 
DivTRAK® Highlight  
arrow New Clients

 
Events  
arrow DivTRAK® in Your Community

 
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CONTACT US
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October 2002, Issue 2  
spacer image Build vs. Buy: Get the Whole Story
By John T. Lau

The Decision
Photo of John Lau When you need to type a letter, do you: A) Open your word processing program and start typing, or B) Develop a new word processing program?

Obviously, the answer is A. Microsoft Word functions perfectly well, so why reinvent the wheel? It would not occur to us to design, develop, test, and support a new word processing program each time we need to send a note. If we did, our letters might never get done.

So why the ridiculous question in the first place? While the logic is clear, sometimes well-meaning supplier diversity directors and IT managers take the "reinvent the wheel" approach when selecting their supplier diversity management systems.

In order to understand the ramifications of this approach, let's take a look at the true costs of ownership for a homegrown diversity tracking solution versus the purchase of a proven solution.

Homegrown Hurdles
Consider the steps you'd have to take to develop your own solution successfully. In our experience, the creation of an in-house system encompasses five distinct phases, incorporating at least five separate divisions, and spanning several years in time.

Planning. You'll need supplier diversity personnel, IT, accounting, and C-level management buy-in to create an actionable plan.

Design & Prototyping. You'll need multiple technical and design experts to create an easily navigated user interface. This can particularly tricky if you don't have available in-house resources.

Development. A team of multiple programmers and IT personnel will have to identify and create applications to meet each of your tracking needs throughout the organization. Each application – and the user interface design – will then have to be implemented by this staff as well.

Testing & Training. Users will have to become familiar with the application in order for it to function as intended. This phase involves the IT department, as well as all potential system users.

Rollout, Support, Maintenance. Launching an application is a lot like a wedding – lots of fanfare, and the creeping realization that now you're stuck for better or for worse. If your business changes, the system will have to be updated to reflect those changes. The full process will have to be implemented again each time these changes are made.

Some Other Things You May Not Have Considered
Focus. Making and maintaining supplier diversity tracking software is probably not your IT department's first priority. After all, they have a whole company to support. Add to that, personnel turnover. One client we know of went through five technical project managers in two years before they began to question maintaining their own system.

Expertise. You know your business and you may know supplier diversity issues as they apply to your business, but do you have the time to keep on top of these trends and the diversity business world at large? Even more, do you have an IT department well-versed in the issues?

Fuzzy Math/Fuzzy Data. Your diversity numbers should be as accurate as possible. This means installing the most proven method for tracking and reporting data. In the realm of diversity supply chain management that means DivTRAK®.

So why reinvent the wheel when DivTRAK® already provides the best on the road? Make DivTRAK® your standard in tracking supplier diversity.

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Case StudyCase Study
DivTRAK®: Doing the Impossible

The Company
Avis Rent A Car operates the world's second largest car rental brand, providing business and leisure customers with a wide range of services at more than 1,700 locations in the United States, Canada, Australia, New Zealand, and the Latin American/Caribbean region. The company is a wholly-owned subsidiary of Cendant Corporation (NYSE: CD), a diversified global provider of business and consumer services primarily within the real estate and travel sectors.

A leader in the development and maintenance of a world-class supplier diversity program, Avis has received multiple awards and citations. Most recently, the Women's Business Enterprise National Council (WBENC) announced Avis as one of America's Top Corporations for Women's Business Enterprises.


Avis' Supplier Business Alliances has created a world-class supplier diversity program through dynamic teamwork and unflinching dedication. From left to right, the group is comprised of Susan Pettit, senior procurement specialist; Lynn A. Boccio, vice president; Torronce Addison, certified paralegal; and Patricia Tagle Maurin, program coordinator.

The Challenge
Avis had two distinct needs for its supplier diversity program. As an airport concessionaire, Avis is mandated by the government to maintain a minimum level of Disadvantaged Business Enterprises (DBEs) as vendors. As part of its compliance, the company must furnish aviation boards and mayors of cities in the airports where they reside with customized compliance reports. These reports require distinct content and formatting, and each is often due at varying schedules.

Secondly, Avis maintains a standard corporate supplier diversity program. A proactive and expansive program, it includes both large national MWBEs, such as rubber mat suppliers, and small businesses, such as auto body shops that prepare and repair cars at airport locations.

For all businesses, data must be accurate and efficient. Reports must be prepared and the company must be able to respond to requests for compliance audits at a moment's notice. And as the company grows rapidly – acquiring new organizations and establishing new outlets – it must find a way for its supplier diversity program to seamlessly grow in conjunction.

A tall order to say the least. And without a long-term solution, Avis was losing days and weeks in response time, and sacrificing the accuracy of its information. "The only way to effectively run a program of this magnitude was through an automated system," said Lynn Boccio, vice president of Supplier Business Alliances at Avis. And so the search began.

The Solution
Boccio and her right-hand man, Torronce Addison began investigating the available offerings. Upon encountering Appliedinfo's DivTRAK® solution, the answer was clear. "Other businesses were attempting to compete with DivTRAK®, but they didn't make the cut," said Boccio.

As a certified Minority and Women-Owned Business Enterprise (MWBE) itself, Appliedinfo inherently understood the issues of certification and compliance. "I didn't have the time to invest in conditioning a majority-owned company," observed Boccio. "The DivTRAK® team had the competency, timeliness, and ability to customize our solution. And they understood all the key issues from their own experience." In DivTRAK®, Avis found a perfect combination of an MWBE small business able to meet the demands of a large corporation.

The Benefits
Since implementing DivTRAK®, the system has successfully grown with Avis. In addition, it has increased the accuracy and efficiency of its supplier diversity program extensively. Reports that used to take days and weeks to complete, now take five minutes.

With such time savings, Addison is now able to complete nearly seven-times as many reports as in the past and focus his attentions on other tasks. But perhaps most importantly, the airports are pleased. Avis has received multiple letters of commendation praising the company's fine reporting and compliance.

Able to ensure accurate data, quickly compile reports, respond to inquiries, and manage all aspects of the Avis supplier diversity program, Boccio comments "DivTRAK® allowed us to do what no other company even thought of."

"Bottom line? We're happy."

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  bullet Return on Investment: Save Money with DivTRAK®

Consider using the following formulas when planning for a diversity supplier management solution. It should help you quantify the development of an in-house system versus the purchase of an established solution.

 
graphical representation of mathematical equation depicting the ROI with DivTRAK graphical representation of mathematical equation depicting the ROI with DivTRAK graphical representation of mathematical equation depicting the ROI with DivTRAK


graphical representation of mathematical equation depicting the ROI with DivTRAKgraphical representation of mathematical equation depicting the ROI with DivTRAK


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We're excited to report the number of committed DivTRAK® users has grown. Home Box Office (HBO) and Cardinal Health are the latest corporations to select DivTRAK® as their diversity supply chain management software solution.

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spacer image spacer image spacer image bullet DivTRAK® in Your Community

To speak with John Lau and our DivTRAK® team, or schedule a DivTRAK® demo, please come see us at:

National Minority Supplier Development Council: NMSDC Annual Conference and Business Opportunity Fair
October 27-30
Los Angeles Convention Center
Los Angeles, California
http://www.nmsdc.org

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spacer image©2002 Applied Information Services, Inc.


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