The special preferences many corporations offer veteran-owned businesses can sometimes lead veterans to believe that these corporations will offer them a contract simply for being a veteran. In fact, many start-up VOBs make this mistake time and time again.
Supplier diversity managers from two large, successful corporations weigh in, telling you the best way to position your business to land a contract.
Steve Humphrey, supplier diversity manager for Volvo Trucks North America / Mack Trucks, Inc.
Vetrepreneur: A vetrepreneur comes to you to earn business with Volvo. What can they do in advance to give them a better opportunity to win the bid?
Humphrey: It’s about building relationships first. Both parties need to fully understand each other's organizations and what makes them tick. Then it becomes the matter of matching "talent" to resolving problems or tasks unfulfilled, providing there is the priority. Better for less will always get a buyer's attention.
Vetrepreneur: What is the WRONG way to try to earn Volvo's business?
Humphrey: I find veterans the least likely to leverage entitlement, and that is a compliment. I really cannot sell a potential supplier to a buyer based on that supplier helping us with our numbers. I can sell talent and a committed focus on problem resolution and of course "better for less." So when I hear "let me help you with your numbers," that's a turn-off. When we find, and are inclusive of talent, the "numbers" will come and of course ownership by ethnicity, gender, or anything else should be irrelevant.
Vetrepreneur: Any other suggestions for VOBs?
Humphrey: Veterans have those wonderful attributes that served them so well in the military that can make for great business leaders. Failure, for instance, is not a popular word amongst veterans. Tenacity and perseverance come to mind. This speaks well for suppliers in which we need to have as sustainable and long-term business partners. Veterans and veteran organizations should market these attributes.
Jamie S. Crump, director of indirect strategic sourcing & supplier diversity at United Rentals
Vetrepreneur: What can a VOB do in advance to give them a better opportunity to win a bid with United Rentals?
Crump: Have a pitch on how they can add value for United Rentals. That means understanding what our business is about. Do some research on the web, check out a local branch and then let us know how you think your business fits. It is a lot easier to make the connection with the right folks internally if the potential VOB role can be articulated.
Vetrepreneur: What is the WRONG way to try to earn United Rentals' business?
Crump: The top three turn-offs: 3) Asking what United Rentals does; 2) Not having a firm mission; saying “We can do anything” just tells me you haven’t focused on anything as a core competency; and 1) Impatience. We don’t introduce every potential business to the sourcing group – we need to feel confident in your abilities before we will do that.
Most of our categories are currently under contract, some for 2-3 years. United Rentals is looking for partnerships, not quick hits, and that often means a longer sales cycle. We think the end result is worth it and are interested in meeting companies who agree.
Vetrepreneur: Any other suggestions?
Crump: Stay in touch. I have a lot of respect for a supplier who asks if they can check back from time to time, asks what the right amount of time might be and then manages to do that. It shows consideration, project management and professionalism.
What Volvo Buys From VOBs
Volvo’s indirect services division is called NAP (non-automotive product), while the direct material on their truck products is called AP (automotive product). Direct material accounts for a large percentage of money spent and they are always looking for potential premium suppliers for their premium products.
What United Rentals Buys From VOBs
Most of their direct side business (equipment) is done direct with the manufacturers, so the biggest opportunity is on the indirect side (what they don’t rent or sell), supporting the infrastructure of the business. Some recent bids have been for categories such as bulk fuel, equipment leasing, help desk, employee screening services, contingent labor, bottled water, office supplies and website development.
“I'm afraid there is a significant gap in understanding how methodical corporations actually are versus the expectations of all diverse suppliers, not just veterans, as to how long it actually takes to receive a contract. That's a nice way of saying that corporate-America is slow.” - Steve Humphrey