Diverse supplier base key to Boeing success

Top construction contractor sets the bar for all suppliers

BY BOB BURNETT

Supplier diversity works. Just ask Mel Johnson, Pat Defiesta or Ida Brooker.

The three Shared Services Group procurement agents recognized the potential of a small, woman-owned construction company, cultivated the fledgling firm into one of Boeing's most valued suppliers, and then helped propel the Seattle-area contractor into the national spotlight.

Boeing supplier Clements General Construction Inc. won the U.S. Small Business Administration 2003 National Subcontractor of the Year award. "Clements exemplifies the strengths of quality, innovation and flexibility our small and diverse suppliers bring to Boeing," said Vernell Jackson, vice president of Supply Chain Services in Shared Services.

Boeing officials rave about the company and the personal integrity of its owners, Sharon and Larry Clements, who have twice returned money to Boeing after completing projects under budget—more than $100,000 they considered "excessive profit."

"You don't see that every day," said Doug Perry, director of Shared Services Supplier Management and Procurement, which handles most of Boeing's nonproduction suppliers. "That is exceptional."

Johnson, who wrote the winning nomination, is downright effusive: "I've been in the construction business for 40 years and I've never seen anything like it. They work as a true team member in looking out for Boeing's best interests."

Sharon Clements, CEO of Clements General Construction, credits Boeing for much of her company's success. She praises Boeing's Supplier Diversity Program and the mentoring and guidance the firm has received.

"We have worked with so many great people at Boeing," she said. "I have learned a lot from Mel Johnson, Pat Defiesta and Ida Brooker, among others. They have been a source of encouragement and continuing education."

The Small Business Administration award also recognized Brooker, Defiesta and Johnson for their diligence in finding Clements and placing their trust in them through ongoing contracts, said Carrie Hill, Boeing director of Supplier Diversity.

"Small businesses have less overhead structure and are more nimble," she said. "Doing business with small business is really just good business."

Shared Services Group tops utilization targets in every major diversity category, with small and culturally diverse businesses making up nearly 60 percent of the division's 2,800 suppliers.

"Shared Services is the best of class in supplier diversity," Perry said. "Nobody else comes close to the percent of work we place with minority and small, woman-owned suppliers."

The targets are hardly entitlements or handouts. Performance comes first. Every quarter, Boeing measures suppliers for work quality, cost effectiveness, schedule compliance, safety, and other key objectives.

Over the years, Clements has averaged 4.5 on a 5-point scale.

"Doing construction work for Boeing is not easy," said Brooker, the procurement lead who initially identified the Clements, advised them when they formed their own company, and worked with Johnson, Defiesta, and others to develop the company's potential. "Our schedules don't allow for a lot of handholding and training. If you do the job and are successful, you can work for us again. If not, you won't."

robert.l.burnett@boeing.com