United Rentals has taken the lead in developing a Supplier Diversity Program in Canada. Its remarkable success is attributed to excellent communication with suppliers, an amazing leadership team, and a strong belief that diversity is key to sustaining a competitive position.
By Jill Motley
United Rentals is a leader in supplier diversity, and has taken the program to 49 U.S. states and 10 Canadian provinces. There is one supplier diversity program headed by Jamie Crump, director of strategic sourcing and supplier diversity. The goal is the same in both countries: Engaging the best diverse suppliers who can bring innovation and value to United Rentals, increasing competitiveness and responsiveness to customers. Yet, there are cultural differences between the U.S. and Canada, so Crump was challenged with tailoring solutions that meet the specific needs of Canadian businesses and customers. She developed a mix of strategies that include partnering with diversity organizations, giving businesses in different regions room to develop unique solutions, and focusing on the Return on Investment (ROI) of suppliers.
Just for Canada
“The U.S. gave us a template for expanding Supplier Diversity into other areas,” says Crump, “but the key to success in Canada is tailoring solutions that fit Canada’s culture and different geographic and business needs.” United Rentals (UR) is the largest equipment rental company in the world, and a critical factor for organizational success is the development of a supply chain consisting of suppliers who are viewed as partners. Crump looks for suppliers who work well within the organizational and geographic culture, are flexible and willing to bring new ideas and innovation, and can adhere to a strategic plan once it is put in place. She has built close working relationships with organizations like CAMSC, WBE Canada, WE, and CGLCC to get access to new suppliers. Crump is a frequent trainer and presenter at events hosted by companies like the Royal Bank of Canada. One of the most impressive characteristics of diverse-owned Canadian businesses and diversity organizations is their exceptional willingness to work together and to attend each other’s events, creating a strong foundation for supplier diversity that Jamie can leverage to benefit United Rentals. This is particularly critical in Canada because the government has not issued a directive on supplier diversity like the U.S. government has for federal contracts.
To achieve success in Canada, Crump had to develop key best practices that she knew would increase the chances for success. Topping the list is effective communication which is enhanced through the partnering with sourcing and diversity organizations. “You can’t manage a supplier program across Canada out of Toronto. You must participate in events in different cities like Calgary, Halifax, and Moncton, which we have, and have other areas targeted. This approach has become a great source of suppliers, and on a suppliers-per-event basis, we do better in Canada than we do in the U.S.,” says Crump. To specifically locate diverse suppliers, Crump’s team regularly communicates current and future needs and follows up when connections are made through networking with potential suppliers who seem to be a good fit, even if UR is not bidding a contract out at the time. The potential supplier connection is maintained for years until a need arises. “We need bench strength in the supply chain to stay competitive,” she adds.
Prepared to Meet a Future Need
The effort has paid off many times over. A few years ago, Jamie’s team conducted a staffing initiative, and already had a number of suppliers waiting for an opportunity. After the RFP was issued, more than 130 suppliers responded, and the team was able to get it down to 38 who participated in the RFP. Of the 13 that received awards 2 were diverse suppliers based in Canada. Spirit Staffing in Calgary and Trillium in Toronto were selected, and both have been suppliers for four years and contract renewals are in progress.
Developing suppliers before there are RFPs available is a strategy that has helped UR expand its supplier diversity program into difficult areas for diverse suppliers, like legal. Crump met with the legal staff to discuss the situation and came away with the understanding that trying to find a legal company when there is a current need is not effective. In response, Crump started an annual Legal Day in 2015 during which a whole day of 15-minute supplier interviews are held with United Rentals’ Deputy General Counsel. Connections are made and maintained, and in 2016 a case was awarded to Walker Law.
Opportunities to Share Innovation
The ability to maintain innovation in products and services is a major success factor for United Rentals, and suppliers play a critical role. Jamie is clear that getting innovation from all sizes of suppliers depends on clearly communicating UR’s need for innovation and giving suppliers opportunities to share their ideas, changes in the marketplace, and ways UR can leverage those changes. Jamie explains, “Smaller suppliers may be intimidated at the thought of approaching a company as large as UR with new ideas. They have to know they are considered a partner as much as the large supplier. If the only time you talk to suppliers is when there is a problem, it’s not a strategic partnership,” Crump explains. UR does have a scorecard process in place for measuring supplier performance. Sections are applicable to all suppliers, and continuous improvement and innovation is one of them. In addition, sections are specifically tailored to the supplier.
UR has helped some suppliers build capacity and some to become more efficient in the supply chain. In some cases, suppliers have grown by first serving a UR region and then eventually adding one or more other regions. UR also does a lot of mergers and acquisitions as its growth strategy, and suppliers have opportunities to grow with the organization. Crump also believes other activities can lead to capacity building, such as mentoring of suppliers and increasing public awareness of suppliers. Helping suppliers become more efficient is also a process. “I hold regular conversations with our organizations about the quality of their deliverables and developing their own Supplier Diversity Programs,” Crump says. “ I expect them to be on top of what is going on in their markets and to be able to explain to me how UR is benefitting from efficiencies and innovations. What value does the supplier bring to United Rentals?”
An Amazing Team
Keeping a finger on the pulse of local communities and markets is important to United Rentals as a company. It does so through its suppliers, but also through expression of community service. UR supports Valor Place in Edmonton and has a number of groups within its organization that are involved in the education and empowerment of community members. For example, the Women United group trains and educates young girls in construction and various industry positions. Branches in the regions are encouraged to get active in their local communities, participating in activities of their choice such as support organizations for homeless or children in need. A good example is when the fires ravaged Fort McMurray, and people were running out of gas while trying to get out of the danger area. The UR branch people in the Fort McMurray area contacted Calgary and Edmonton associates, and together they made fuel trucks available to fill gas tanks on the side of the road.
“I have an amazing team,” says Crump. They are talented, focused, and committed to finding the best suppliers for UR and expanding the supplier diversity program. Jamie has carefully built her team by hiring people who bring diversity of skills. She believes in hiring people that ensures the company is getting a broad brush of talent so that team members complement each other. The people she hires must be the right fit for the United Rentals culture which means they must have an innate curiosity to maintain progress. If Crump is unable to temporarily work, which happened recently due to an accident, she knows her team will do an excellent job of carrying on her work, which they did with enormous success.