The Role of Supplier Diversity in the Growth of Companies in the Auto Industry
Lauren Rakolta, CEO of DFM Solutions, has attributed her company’s growth to the support of General Motors’ (GM) supplier diversity team. DFM Solutions, a Detroit-based company specializing in facilities and construction management, has seen its annual revenue increase from $18 million to an expected $100 million this year. GM, along with other automakers such as Ford Motor Co. and Stellantis, has been instrumental in fostering a rich ecosystem of diverse suppliers in the auto industry.
GM’s Commitment to Supplier Diversity
GM has been at the forefront of promoting supplier diversity since 1968 when it became the first automaker to initiate a minority supplier program. The company currently spends around $7 billion annually with diverse suppliers. Stellantis, formerly Chrysler Corp., established its minority supplier program in 1983 and has spent over $100 billion with diverse suppliers since then. Ford has also been a leader in supplier diversity, having spent more than $161 billion since 1978 when it officially launched its supplier diversity program.
The Role of Mentoring and Support
Companies looking to partner with GM and other automakers need to align with their business objectives. Tamara Hicks, GM’s assistant director of supplier engagement, emphasizes the importance of innovative technology and a vision that aligns with GM’s focus on “Zero Crashes. Zero Emissions. Zero Congestion.” Hicks, who has been with GM for 23 years, serves as a mentor for diverse suppliers trying to enter the industry. She helps them understand the stakeholders they’ll be working with and ensures they are prepared for the opportunities.
Lauren Rakolta, CEO of DFM Solutions, highlights the invaluable support she received from GM’s supplier diversity team. When Rakolta purchased majority ownership of DFM in 2015, GM’s advocates mentored her and opened doors for opportunities. While DFM also does business with other automakers, GM’s supplier diversity crew played a significant role in the company’s growth, which is expected to reach $100 million in 2023.
Stellantis’ Focus on Electric Vehicles
Stellantis has been actively fostering the growth of Black suppliers across various industries. The automaker launched the National Black Supplier Development Program in 2021 in collaboration with the National Business League. Stellantis encourages suppliers to align with its Dare Forward 2030 business plan, which includes an aggressive shift to electric vehicles. By 2030, Stellantis aims for half of its U.S. sales to be electric vehicles, making it a crucial area of focus for diverse suppliers.
The Success Story of James Group
James Group, founded by Lorron James’ father, John A. James, has a rich history in the automotive industry. The company started as O-J Transport Co. in 1971, hauling beer and auto parts. Today, James Group offers logistics, supply chain management, and e-commerce services to clients such as Ford, GM, Stellantis, and Toyota. Lorron James, now the CEO of James Group, joined the company in 2007 and has continued the family legacy of excellence in the industry.
James emphasizes the importance of making adjustments and having a strong support team for young entrepreneurs looking to enter the automotive space. He believes that surrounding oneself with the right people is crucial, even when plans are interrupted along the way.
Overall, supplier diversity has played a vital role in the growth and success of companies in the auto industry. Automakers like GM, Ford, and Stellantis have actively supported diverse suppliers, creating a thriving ecosystem of service providers and fostering innovation in the industry.
