Creating Diversity & Inclusion Within the Exelon Corporate Supply Chain
Rapid Conference 2019
Exelon: An Industry Leader
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EDBE Journey: Diversity = Growth
• Exelon consistently surpasses its annual supplier
diversity goals—focusing on Tier 1 and Tier 2
opportunities.
• In 2018, Exelon surpassed its goals for the
inclusion of diverse suppliers:
• Purchasing $2.2 billion in goods and services
from diversity-certified suppliers
• Representing 25 percent of supply-managed
expenditures for services and materials
• Exelon Nuclear’s 2018 diverse supplier spend
totaled $179M, representing 10% of total Opco
spending, exceeding its 8% goal.
• In, 2017 Exelon became the 27th overall company
inducted in the Billon Dollar Roundtable—and the
first energy / utility company.
+105%
Diversity Certified Supplier Spend ($M)
$1,067
$1,360
$1,933 $1,982
$2,192
$-
$500
$1,000
$1,500
$2,000
$2,500
EXELON
2014 2015 2016 2017 2018
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Exelon Diverse Business Empowerment Glossary of Terms
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Diversity Certified Suppliers A business holding a diversity certification from an approved third party certification
organization
Prime Contractor/Supplier Any party or person (who is not an employee of the company) who enters into any
agreement or arrangement with the company for the furnishing of supplies or
services for the use of real or personal property that, in whole or in part, is necessary
to the performance of any one or more contracts.
Tier 1 Prime contract spend with a diverse supplier
Tier 2 Subcontracted spend by T1 with a non-diverse supplier
WBE Woman Business Enterprise
MWBE Minority/Woman Business Enterprise
MBE Minority Business Enterprise
Veteran Veteran Owned Business
Service Disabled Veteran Service Disabled Veteran Owned Business
LGBT Lesbian, Gay, Bisexual, and Transgender-Owned Business EnterpriseEDBE
Leadership Engagement – The Value Proposition for Supplier Diversity
Market Access
• Provide access to new growth to strategically important diverse market segments• Ensures value added and talented diverse supplier base• Achieve a diverse range of suppliers, vendors and service providers
SupplyChain
Flexibility
• Provides second sourcing alternative in supply chain• Reduces supplier concentration risks (single source)• Potential lower cost alternatives to certain suppliers and business processes
CommunityImpact
• Enhance Exelon brand recognition and corporate image• Demonstrate Exelon’s values for community and customers commitment• Enables increased and sustained profitability for diverse customer base• Provides opportunities for new revenue sources to diverse supplier community• Connecting with the diverse consumer base
RegulatoryValue
• Enhances ability to meet government mandate/compliance without sacrificing profits or increasing cost
• Satisfy regulatory requirements per regional jurisdictions
Economic Impact
• Proactive approach toward influencing economic recovery and job creation• Stimulate and grow local businesses enterprises
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Strategy #1 – Leadership Engagement/Executive Comittment
Executive Commitment is Key!
Supplier Diversity initiatives succeed when the company
“C-Suite” endorses and commits; When supplier diversity
is important to the CEO and top management, it becomes
important to the entire team.
Exelon’s Supplier Diversity Program is designed to engage
certified women-owned businesses, minority-owned
businesses and other businesses with recognized diversity
classifications. Diversity is an Exelon core value and a
business imperative. In fact, achieving a diverse range of
suppliers, vendors and service providers is among our
formal, strategic goals.
Exelon’s Chief Supply Officer (CSO) and Diverse Business
Empowerment Director present annually to the Exelon CEO
and Board of Directors. Presenting to the Corporate Board
of Directors re-iterates the importance of supplier diversity
across the corporation, not just the Supply Chain
Having a written supplier diversity policy statement
communicates corporate definition of supplier diversity and
the corporate process for tracking, reporting and managing
the process
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Strategy #2 – Integrate Diverse Suppliers in the Sourcing Process
Ensure that diverse suppliers are integrated into the overall sourcing process
What are the areas (categories) of opportunity? What is the low-hanging fruit?
What is your sourcing strategy? Local and Diverse?
What are the categories of spend where there is a high percentage of available diversity
certified suppliers?
What are the resources available to identify diverse suppliers?
Link supplier diversity to overall corporate sourcing strategies
Focus on building capacity and developing diverse suppliers in core areas of spend
Focus on integrating diverse suppliers across all categories of spend
Focus on your company’s largest categories of spend
Benchmark against the best in class (supplier diversity) in your industry
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Exelon Best Practice:
Exelon’s Executive Vice President, Chief Supply Officer and Supply Chain leadership team
meet weekly with Category Managers and Supplier Diversity representatives to review and
discuss sourcing initiatives that are upcoming and in-flight to ensure a diverse slate of
bidders/suppliers.
Strategy #3 – Goal Setting, Tracking and Reporting Spend
“What gets measured gets managed “ – Peter Drucker Establish corporate supplier diversity performance goals
At Exelon, annual supplier diversity spend goals are established for our Operating Companies including
Nuclear and the Utilities.
The goal setting process includes a review of historical spend data and upcoming sourcing
initiatives/opportunities.
Proposed goals are socialized with each Opco leadership teams.
Starting in 2017, Exelon Nuclear established aggressive supplier diversity spend targets
Measure supplier diversity performance against goals
Review year over year performance $ and % (increase/decrease)
Review goals regularly (monthly, quarterly, annually)
Review key metrics regularly with senior management team, chief executive officer, chief supply officer
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Best Practice: Exelon supplier diversity metrics are tracked and reviewed monthly
with supply chain leadership ,operating company leadership and key stakeholders.
Strategy #3 – Goal Setting, Tracking and Reporting Spend
Track and report diverse supplier spend as T1 and Tier 2 within national diverse supplier
advocacy organization guidelines for large corporations.
Ensure that mechanisms exist to track and report diverse supplier spend data
Employ a third party organization for data enrichment activities
Are there “unknown” diverse suppliers already in your supply chain?
Identify areas of opportunity for non-diverse suppliers to optimize their use of diverse
subcontractors
- Establish Tier 2 (subcontracting) requirements? $/%s
- Establish mechanism for prime suppliers to report T2 spend
- Hold non-diverse suppliers accountable
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Tier 2 spend is to be reported by prime suppliers to Exelon through the P2P online reporting
platform
Tier 2 reporting is typically agreed upon prior to PO/Contract award
Direct spend will be reported by purchase order (PO) or contract
Exelon requires monthly reporting with the period opening on the 1st of each month and
reporting snapshot is taken on the 14th day of the month (or next business day) allowing for a
full 10 business day window to submit Tier 2 spend
Suppliers will be able to report Tier 2 spend for the previous month and has the ability to report
on any month that has already occurred within that calendar year
Reporting is HIGHLY encouraged to be submitted in a timely manner so that all Tier 2 spend is
captured for the previous month and accurately reflected in Exelon’s monthly reporting to
upper management
Direct and/or Indirect Spend is required of all reporting prime suppliers (if applicable)
For Exelon reporting purposes all diverse spend shall be submitted after payment is made to
the diverse subcontractors (not invoice date)
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Strategy # 3 - Goal Setting, Tracking and Reporting Spend
Exelon Best Practice – Tier 2 Institute
In addition to having contractual
language and mechanisms for non-
diverse suppliers to report subcontracting
spend, Exelon periodically hosts Tier 2
Institutes.
The Tier 2 Institute is a one-day
instructional seminar designed to assist
non-diverse prime suppliers in their
efforts to identify, work with and optimize
their relationships with diverse
subcontractors.
Program includes a presentation by the
Exelon Diverse Business Empowerment
team, a panel discussion with sourcing
leads and networking with pre-vetted
diversity certified suppliers.
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T2 SPOCs
BU Sourcing Group Leader T2 SPOC
Corporate Services & Materials Lisa Mason Jeanne Haran
Corporate IT/Telecom Erin LangstonJuliette Munnerlynn-
Jenkins
Nuclear ExGen Services Ryan Fitz-Patrick Erika Wiese
Nuclear ExGen Materials Ryan Fitz-Patrick Elaine Myers
Utilities EED Services Jim Gregory Brandi Pittman
Utilities EED Materials Bill Gallagher Chris Simcox
Power Strategic Sourcing Scott Donner Jackie Bonkoski
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Strategy #4 – Supplier Development
Identify supplier development
opportunities through the analysis of
underrepresented spend categories
Identify opportunity for supplier
mentoring
Identify diversity certified suppliers
that align with your sourcing strategy
Partner with non-diverse large
companies with industry expertise to
also mentor suppliers
Support external diverse supplier
technical assistance programs
National Minority Supplier
Development Council(NMSDC’s)
and affiliates Centers of Excellence
Program
Chicago United Five Forward
Program
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Exelon Best Practices
Exelon’s utilities to equip select diversity
certified suppliers with the tools and
knowledge to attain their next level of business
growth business through on-going and
meaningful one-on-one mentorship,
educational workshops on business skills,
safety policies, the Exelon bidding process,
and hands on support of resources.
ACE Target 25
BGE’s Focus Forward Academy
ComEd’s Enterprise All-In
DPL Target 25
PECO’s Power 25
Pepco Target 25
Strategy #5 – Supplier Outreach
The EDBE Office constantly builds relationships with diverse suppliers and ensures our active involvement with
minority business development and advocacy organizations. As a result, Exelon maintains a large database of
qualified diverse suppliers. Our participation in local, regional and national diverse-supplier advocacy
organizations also enhances our knowledge of diversity-certified suppliers. In 2018, we expanded opportunities
in categories in which diverse suppliers were historically underrepresented. The supply sourcing teams worked
with regional organizations to leverage their resources and ensure local diverse contractors were positioned for
meaningful participation in future bid opportunities in these categories. National and regional organizations that
Exelon partners with include:
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National Organizations
• American Association of Blacks in Energy
• Edison Electric Institute
• Human Rights Campaign
• Rainbow PUSH Trade Bureau
• The Women’s Business Enterprise National Council
(and regional affiliates)
• Billion Dollar Roundtable
• National Utilities Diversity Council
Regional Organizations
• Capital Region Minority Supplier Development Council (CRMSDC)
• Chicago Minority Supplier Development Council (CMSDC)
• Chicago United (The Five Forward Program)
• Eastern Minority Supplier Development Council (EMSDC)
• Hispanic American Construction Industry Association
• Illinois African American Chamber of Commerce
• Illinois Hispanic Chamber of Commerce
• Illinois Utilities Business Diversity Council
• Maryland Chamber of Commerce
• Maryland Governor’s Office of Minority Affairs
• Maryland Hispanic Chamber of Commerce
• Maryland Minority Contractors Association
• New Jersey African American Chamber of Commerce
• New Jersey Supplier Diversity Development Council
• Philadelphia African American Chamber of Commerce
• Philadelphia Gay and Lesbian Chamber of Commerce
• Philadelphia Hispanic Chamber of Commerce
• Philadelphia Independence Business Alliance
• Maryland Washington Minority Companies Association
National Minority Supplier Development Council (NMSDC) Affiliates
National Minority Supplier Development Council
(NMSDC) Affiliates
The National Minority Supplier Development
Council advances business opportunities for
certified minority business enterprises and
connects them to corporate members. To achieve
their mission, NMSDC:
work through the NMSDC Network to support
and facilitate MBE integration into corporate
and public-sector supply chains;
build MBE capacity and capabilities through our
programs and other education offerings; and
facilitate MBE-to-MBE partnerships to meet the
needs of our corporate members.
The National Minority Supplier Development
Council Inc ® (NMSDC®) is one of the country’s
leading corporate membership organizations.
Whether you’re a small minority-owned
organization or a billion dollar powerhouse, we’re
committed to helping you solve the growing need
for supplier diversity.
With more than 12,000 certified minority-owned
businesses, the NMSDC links them with corporate
members who wish to purchase their products,
services and solutions.
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The NMSDC has 22 affiliates across the country and Puerto
Rico, Below is contact info for the affiliates to which Exelon is
a member:
Capital Region Minority Supplier Development Council
Serving the District of Columbia, Maryland and Northern
Virginia Ms. Sharon Pinder
President/CEO
Silver Spring, MD 20901
(301) 593-5860
Chicago Minority Supplier
Development Council
Serving Metro Chicago and NW Indiana
Ms. Shelia Morgan, President/CEO
105 West Adams Street
Suite 2300
Chicago, IL 60603
(312) 755-8880
Eastern Minority Supplier
Development Council
Serving Pennsylvania, Southern
New Jersey and Delaware
Ms. Valerie Cofield, CEO
Rodin Place
2000 Hamilton Street, Suite 300
Philadelphia, PA 19130
(215) 569-1005
Women’s Business Enterprise National Council (WBENC) Affiliates
WBENC Affiliates
• The Women’s Business Enterprise National
Council (WBENC) is the largest certifier of
women-owned businesses in the U.S. and a
leading advocate for women business owners
and entrepreneurs.
• WBENC’s mission is to fuel economic growth
globally by identifying, certifying, and facilitating
the development of women-owned businesses.
• WBENC Certification validates that a business is
at least 51 percent owned, controlled, operated
and managed by a woman or women. Our world-
class certification standard is accepted by more
than 1,000 corporations representing America's
most prestigious brands, in addition to many
states, cities and government entities.
• We provide best-in-class programming, events
and networking opportunities for women-owned
businesses, supplier diversity experts,
government and corporate procurement
professionals, and other industry and thought
leaders throughout the U.S.
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WBENC has 14 affiliates across the country.
Below are the WBENC affiliates to which
Exelon utilities are a member:
Women’s Business Development Center – Midwest
Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North &
South Dakota, Wisconsin
EMILIA DIMENCO
President & CEO
8 South Michigan, 4th Floor
Suite 400
Chicago, IL 60603
tel: (312) 853-3477
Women's Business Enterprise Center East
Delaware, South New Jersey, Pennsylvania
ELIZABETH WALSH
President
1315 Walnut Street, Suite 1116
Philadelphia, PA 19107-4711
tel: (877) 790-9232
Women Presidents' Educational Organization-DC
District of Columbia, Maryland, Virginia
SANDRA EBERHARD
Executive Director
1120 Connecticut Ave. NW, Suite 1000
Washington, DC 20036-3951
tel: (202) 595-2637
ResourcesContact Information
Keisha Parker Director, Diverse Business Empowerment Exelon CorporationPhone: 312-394-4934Email: [email protected]
Frank Kelly Manager, Diverse Business EmpowermentExelon/BGEPhone: 410-470-7811Email: [email protected]
Michael CabreraManager, Diverse Business EmpowermentExelon/ComEdPhone: 630-437-2231Email: [email protected]
Vernice Lewis Senior Manager, Diverse Business EmpowermentExelon/PECOPhone: 215-841-6027Email: [email protected]
Charlie Partridge Senior, Diverse Business Empowerment SpecialistExelon/PepcoPhone: 202-872-3171Email: [email protected]
Wendy Mann FloresSenior, Diverse Business Empowerment SpecialistExelon/ACE/DPLPhone: 302-429-3224Email: [email protected]
Nikki BigelowAssociate Diverse Business Empowerment SpecialistExelon Corporation Phone: 410-470-7809Email: [email protected]
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