ECRM, Ahold partner on supplier diversity fair

Drug Store News,  June 26, 2006  by Antoinette Alexander

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FORT LAUDERDALE -- Ahold USA and Efficient Collaborative Retail Marketing teamed up earlier this month to hold the first Ahold Supplier Diversity Trade Fair, a venue where women- and minority-owned businesses and Ahold buyers could come together to explore supplier diversity development opportunities.

The trade fair was held here at the Fairmont Turnberry Isle Resort & Club on June 13 in conjunction with ECRM's Power Week, which also included EPPS events focused on the skin care and hair care categories over the five-day period.

The day-long event featured presentations by James Sturgis Jr., director of supplier diversity at Ahold USA; Wayne Bryant, director of sourcing at Ahold USA; and Henry Hailstock of the Food Marketing Institute. The trade fair also incorporated the EPPS format, where Ahold USA buyers and suppliers participated in pre-arranged 20-minute power sessions.

The event aimed to educate smaller women- and minority-owned businesses on how to do business with Ahold USA, and other retailers for that matter, and further supplier diversity in the retail setting. The importance of such an event, according to Ahold, is evidenced in the numbers.

According to U.S. Census Data, the number of women and minority-owned businesses is outpacing the average, and women lead the pack with African American and Hispanic groups not far behind, stated Melinda Hall, director of category development for ECRM's beauty care category. From 1997 to 2002, alone, the number of businesses owned by African Americans increased 45 percent, and Hispanic-owned businesses reported a 31 percent growth.

In terms of revenue, women are again up front. In 2002, women-owned businesses--a total of 6.5 billion firms--reported a 20 percent increase, and a total of $940 billion in revenue. From African-American-owned businesses, revenue reached $88.8 billion, while Hispanic-owned firms totaled $222 billion.

"I want to use supplier diversity to drive traffic to stores. I want to build brand loyalty," Sturgis told attendees. "Supplier diversity is no longer just 'the right thing to do,' this is a business reason."

Suggestions Sturgis had for such smaller businesses looking for space on the retail shelf include: Be prepared when meeting with a buyer, know the product, know the category, know the retailer's business, hire a broker, provide a solution and become certified as a minority-owned business.

Bryant provided attendees with an overview of the supplier expectations at the company's American Sales subsidiary, which distributes general merchandise and health and beauty goods for Ahold USA, and talked about the, importance of ECRM and the trade fair.

"There are often diamonds in the rough that we are not aware of until we come to these shows," said Bryant.

According to Sturgis, the goal is to continue to grow the trade fair and even nave other retailers attend to meet with suppliers. In general, attendees seemed pleased with the trade fair.

"I think it was good for small businesses because they have individual concerns and they are in a room where everyone has the same feelings and it is reassuring," said Ved Singh, chief executive officer of Heritage Brands, a manufacturer of laundry detergents, household cleaning products and dish care products.

As a newcomer to the industry, Missy Cohen-Fyffe, president of The Clean Shopper, a maker of shopping cart covers for children, said she found the event very beneficial, but had one suggestion. "If they hold it again it would be nice to meet with more buyers, not just Ahold buyers. But it has been good," she said.

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