“The Supplier Diversity initiative is a vital part of our business, and I’m glad to celebrate the success we have with our minority-owned, women-owned, and veteran-owned business enterprises.”
– Scott Prochazka, President & CEO, CenterPoint Energy
Our supplier diversity initiative is a vital part of our business, and we are glad to celebrate the success we share with our minority-owned, women-owned and veteran and small owned business enterprises. At CenterPoint Energy, we know from experience that when minority-owned, women-owned and small businesses work with our Supplier Diversity program, they provide value. They have a team of professionals on their side who are dedicated to dealing the winning hand – both for CenterPoint Energy’s bottom line and for the communities we serve — by nurturing business opportunities that translate into jobs, wealth creation, and community support.
With our Supplier Diversity initiative, our business partners are excelling in competitiveness, agility, innovation, and collaboration. Supplier diversity means so much to our company. CenterPoint Energy has grown from some challenging times when it was launched as a new company in 2002, to a company with a strong balance sheet. We have carefully managed expenses, driven process improvements, added new customers and services, and developed into one of the nation’s leading energy delivery companies.
One element of our success has been our consistent belief in using diverse suppliers. It’s important to note that this is NOT a philanthropic initiative. Supplier diversity is NOT based on a quota system or social program. At CenterPoint Energy, we know that supplier diversity is a winning hand for our company, as well as for our suppliers. Numerous studies have shown, and we also know from experience, that using a diverse range of suppliers has a positive impact on a company’s bottom line.
Our commitment to working with minority-owned, women-owned, veteran-owned, and small businesses pays off in many ways:
- It promotes innovation through the introduction of new products, services and solutions
- It provides us with more channels through which to procure goods, services, and business collaboration
- It drives competition in areas such as pricing and service levels between our current and potential vendors
Our business is meaningful, and perhaps even important to our diverse suppliers, and they make sure they consistently deliver quality products and services. In many cases, we’ve seen that they have the agility to adapt quickly and offer innovative solutions that some larger suppliers were unable to provide.
Engaging diverse suppliers helps to stimulate the local economies in Houston, which is celebrated as the most diverse city in America and across cities in our footprint states of Arkansas, Louisiana, Minnesota, Mississippi, and Oklahoma. Supplier diversity also reinforces our reputation as a company that serves and empowers everyone in our communities – throughout our service territory. Many of our diverse suppliers are also our customers. When they get our business, not only do they help feed the economic engine of our communities – they also share their success stories with others.
We are also proud to be a supplier diversity thought leader, because it provides forums for sharing information, resources, tools, methodologies, and experiences to help small, minority-owned, women-owned, and veteran-owned businesses achieve their potential. It also helps other companies and organizations see the importance of supplier diversity.
Our company’s supplier diversity success is built on three pillars:
- First – Identifying and engaging qualified suppliers among small, minority-owned, and women-owned businesses
- Second – Helping small businesses and MWBEs develop and thrive
- Third – Encouraging our prime suppliers to support supplier diversity. This is what we call second-tier spending. CenterPoint Energy’s requirement and careful monitoring of second-tier spend supports our commitment to the utilization and development of diverse suppliers in our supply chain.
Our commitment to diversity in our supply chain also includes a second-tier program in which active support of supplier diversity is required. In our second-tier program, prime suppliers – making up more than 80 percent of our business – provide us quarterly reports on supplier diversity dollars spent and join us in various outreach opportunities.
In 2017, CenterPoint Energy was recognized for supplier diversity achievements including:
From the Women’s Business Enterprise Alliance:
- Corporation of the Year
- Procurement Champion of the Year
- The Cutting Edge Award
- Corporate Advocate of the Year
Houston Minority Supplier Development Council:
- MBE Procurement Award
- The Exemplary Leadership in Minority Business Development Award
You may ask, “What do MWBEs do for CenterPoint Energy?” We can answer that with another question: What don’t they do? Our diverse suppliers construct gas lines, install fiber optic cable, and trim trees to help us ensure electric reliability. They provide electrical components, poles, vehicles, fuel, and uniforms. They provide computer hardware and software. They perform critical services including accounting, advertising, consulting, engineering, marketing, legal work, investment banking, staffing, and training. They provide security and deliver office supplies, food, and flowers.
But on another level, more than any one product or service, our diverse suppliers are delivering value every day. They have our business because they earn it – through competitive pricing, innovative solutions, quality service, and personal attention. All they ask for is a level playing field and a fair opportunity to show what they can do.
Every year, we take part in local, state and national trade shows, conferences, and forums that support small and MWBE development, outreach, and inclusion. CenterPoint celebrates every March as Supplier Diversity Month to shine a light on our relationships with these businesses and raise awareness among our employees about why this is a priority for our company.
So, looking back over these achievements by our company and our suppliers, we can sit back now and say, “Mission accomplished,” – right? Of course not. While we have much to be proud of, we also have plenty of room to do even better. We’re proud of what we achieved in 2017, but we’re not satisfied.
Achieving aggressive supplier diversity goals will take the support of executive management and employees who have buying authority.
We will continue to invest time and resources to thoroughly assess diverse supplier capabilities, build relationships, and grow opportunities. At CenterPoint Energy, Supplier Diversity delivers the winning hand.
What Our Diverse Suppliers Have to Say:
Ann Niemer, founding president of RAN Tech, tells of her history of being a CNP supplier: “RAN Technologies, Inc. has been a supplier to CenterPoint Energy since 1996. It was the Houston Lighting and Power Company at that time. From day one, HL&P gave RAN Technologies, a small WBE company, a chance to learn and understand requirements for the critical equipment used to transfer and distribute electricity in the metropolitan Houston area and surrounding communities. When our company gained the knowledge and experience in fabricating relay, transformer, computer, and other types of panels, we were able to come up with suggestions for design improvements and standardization. CenterPoint was very receptive, yet critical when it was needed. CenterPoint’s recognition of our commitment for quality and service is invaluable to everyone at RAN. We all are honored and proud to be associated with CenterPoint, and we will continue to provide best-in-class quality and service to keep up with challenges presented by CenterPoint Energy. We value collaboration, competitiveness, and agility. We are ready to step up to the plate for CenterPoint!”
Candis Mixon, president of Century Concrete Partners, a key contributing supplier in CenterPoint Energy’s construction of its Brazos Valley Transmission Line says, “CenterPoint’s dedication to supplier diversity is unsurpassed in our industry. As a woman-owned business and WBENC member in the highly competitive foundation business, we have been afforded the opportunity to demonstrate our experience and expertise as a CenterPoint contractor.”
Richard Thomas, president of Turkco Corporation adds his voice: “CenterPoint Energy’s Supplier Diversity commitment has given Turkco Corporation the opportunity to grow in capacity and be a viable entity of their core business by training and employing a part of the workforce with livable wages for their families. CenterPoint Energy’s commitment to diversity gave Turkco Corporation the opportunity to earn a piece of the pie in the sky! CenterPoint Energy’s commitment to supplier diversity is not because they have to, but because they want to provide opportunities for success for those willing to commit to business excellence and effort.”
