FOR MORE THAN 80 YEARS Chrysler has been an integral part of the American economy. Its stylishvehicles from luxury sedans to durable trucks and reliable SUVs grace America’s highways with a reputation for class and quality. Chrysler has historically been successful in producing top-notch vehicles by leveraging the talents and capabilities of a diverse supplier base including veteran owned businesses (VOBs). Jethro Joseph has a unique perspective on the company and its efforts to engage veteran-owned businesses within supplier diversity. He’s been in the automotive industry with Chrysler for more than 39 years as an automotive dealer and automated manufacturing controller, in addition to the past 12 years as a manager in the diversity arena, culminating in his recent promotion to senior executive for diversity supplier development. As an executive for one of the most recognizable brands in the automotive industry, Joseph has also had a front row seat for the wider progress of supplier diversity initiatives within corporate America. This includes the development of minority business enterprises, women owned firms, and more recently, VOBs. NaVOBA asked this industry thought leader and VOB supporter to compare the advancement of the veteran business movement, how to more effectively market the cause within corporate America, and what VOBs need to do to become players in Chrysler’s supply chain.
Is the supplier diversity movement about good business or entitlement?
Supplier diversity has always been about providing an equal playing field for disadvantaged suppliers.However, it is important to note that disadvantaged suppliers still need to prove themselves worthy ofreceiving an opportunity.
How do you compare the progress of the veteran business movement compared to theadvancement of the minority and women owned business movements?
The veteran business movement is in its infancy stage. This is actually a good thing since so many other advocacy groups have paved the way. The advantage the veteran’s movement has is that the group can learn from the successes and failures of the advocacy groups that came before them.
There has been a tremendous amount of growth in supplier diversity initiatives inthe past 25 years or so. How do you assess that progress and where is it headed?
Admittedly, there has been success in the last 25 years as a result of effectively presenting the business case for supplier diversity. I see the implementation effectiveness of the business case as the main objective for the veteran business movement. Only after presenting the business case will the veteran business movement gain more traction. Regarding progress assessment, I think we are at a point where progress/success of supplier diversity efforts will begin to slow down. This will be primarily due to economic conditions and the economy of scale.
What trends do you see evolving within supplier diversity?
An obvious trend is one of "going global." Another trend would be diversification of product off erings and customer base. Lastly, the prevailing concept of "speed to market" is still critical.
How can VOB suppliers position themselves to be successful in today’s environment?
They must be aware of their competitive surroundings. Suppliers must also understand and appreciate cost structure, the marketplace, and they must have a particular interest in new technology.
What do you see about the VOB movement that encourages you?
I am encouraged by the fact that the group is in its infancy and can learn from the other advocacy groups that have come before them. I am also encouraged by the enthusiasm of the VOB business group and by the endless possibilities that await them. Lastly, I appreciate the business acumen of veteran owned businesses.
What do you observe about the VOB movement that concerns you?
More emphasis needs to be placed on good business ratherthan entitlement.
What do we need to do to move it forward?
More training and awareness, when most new groups are formed, the first thingneeded is a public awareness campaign to ensure that the intended audience is awareof who the group is and what the group stands for. In other words, the VOBmovement needs to define the compelling business reason for doing what they want to do. Next, they need to identify their intended audience. Lastly, VOBs need to develop a strategy that allows for the delivery of a clear and concise message totheir intended audience.
Where do you see the VOB movement and VOBA 10 years from now?
With proper emphasis, public relations, and staffing, NaVOBA could be one of the premier advocacy groups in the country.
Will VOBs be on the same level as minorities and women?
For corporations that deal with the government, VOBs are on par with some of the other groups. Regarding non-government suppliers, VOBs need to attract suppliers who have the same kind of affinity as government suppliers. If VOBs create and implement their message properly, VOB access to non-governmental corporations could be more easily attained.
What common mistakes do you see VOBs making that hurts their business?
Not announcing who they are to potential/existing customers. Being a VOB should be an advantage. However, lack of awareness by the customer negates the advantage.
What types of marketing efforts are essential for VOBs to be successful?
VOBs should have a balanced marketing approach with an emphasis on their intended audience.As an example, if you are interested in pursuing government contracts, advertise in governmentperiodicals.
How can VOBs learn about opportunities at Chrysler and what you procure?
Once a VOB accesses the Chrysler diversity website and registers as a potential supplier at http://supplierdiversity.chrysler.com, they are automatically invited to a Supplier Circle meeting. The Supplier Circle meetings are held quarterly by Chrysler’s Diversity Supplier Development staff. The meetings are used as a forum for discussing how to do business with Chrysler or one of its Tier 1 suppliers. Attendees of the Supplier Circle meetings receive an opportunity to speak one-on-one with other disadvantaged suppliers and with their applicable Chrysler Program Manager. It is important to note that Chrysler operates under a "push" relationship with its suppliers rather than a "pull" relationship. In other words, any supplier interested in doing business with Chrysler must be able to state what they can do for Chrysler as opposed to a Chrysler representative telling a potential supplier what theythink they need.
What type of products and services do you typically procure?
Chrysler primarily procures goods and services associated with automobile manufacturing. Examples include electrical, chassis, interior, exterior, stamping, power train, accessory, and service parts. Chrysler also procures items such as raw materials, logistic services, tooling, equipment, construction, professional services, marketing services, and information technology.
What can VOBs do to successfully market themselves to corporations like Chrysler?
VOBs must present themselves as being capable. In other words, VOBs must be able to provide critical parts and services in large volume to demanding customers.
What initiatives do you have at Chrysler to ensure VOBs are involved in your procurement efforts?
Chrysler attends trade fairs, advertises in magazines such as Vetrepreneur and is a NaVOBA Corporate Member.Chrysler also has a military employment group thatworks on ideas related to employing veterans. Employment of veterans leads to a greater sensitivity to veteran sourcing.
Where does Chrysler’s pro-veteran culture originate?
Chrysler’s pro-veteran culture comes from the top down. Chrysler’s CEO, Bob Nardelli, is very committed to providing opportunities for veterans. In fact, he envisioned the company’s Honoring Those Who Served" initiative, which provides employment opportunities for veterans with Chrysler LLC and our network of 3,500 Chrysler, Jeep and Dodge dealers across the country. In addition, we offer vehicle services and discounts specifically to veterans along with community activities that allow military families to speak with their deployed service member via video conferencing. So you can see, Chrysler is actively pursuing a strategy that involves having military involvement as a critical element of the company’s success.
Is there anything else you’d like to say about doing business with Chrysler?
In summary, the success of Chrysler’s program has been and will continue to be its ability to establish, implement, and achieve disadvantaged supplier sourcing goals. Chrysler’s sourcing philosophy has been successful because there is a commitment from all levels of employees within the corporation. There are many different elements in the formula of success. However, none are more important than those charged to the people who must make the philosophy a reality