Shaquanta Locke

Supply Chain Management and procurement are essential to running a successful operation. Any successful operation includes strategies for reducing costs, increasing quality, diversifying the supply pool, etc. These topics are tried and true, however they have been in place for many years without a major disruption in vehicle technology. Now that electric vehicles and EV technology are grabbing hold of the automotive world the question is how do you formulate a new strategy for incorporating this new focus? How do you essentially disrupt a steady supply chain during times of technological change?

I am a 14 year Volkswagen procurement veteran and have spent most of my career as a procurement professional (with experience in multiple commodities). Over the last year and a half my focus has changed significantly placing me in a position where my main focus is now in the field of Supplier Diversity. Beginning a new role is an exciting experience, one that I entered into with an idea of our current vendor pool based off of the production of vehicles with combustion engines. My initial assignment, as I see it, included making a decision on how to recalibrate that vendor pool, but with EV technology now in the forefront. Essentially my goal was to "disrupt and enhance" the Volkswagen supply chain by diversifying it with minority and women owned businesses that have an EV focus.

Supplier Diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. It emphasizes the creation of a diverse supply chain that works to secure the inclusion of diverse groups in procurement plans. A diverse supply chain drives innovation and competition as well as creating multiple avenues to procure good and services.

Supplier Diversity encompasses the inclusion of previously underserved and underutilized communities. It consists of creating equity and inclusion while maintaining connections within the supply chain so that our product is reflective of its customer base. By investing in minority and women owned businesses Volkswagen makes a direct impact on the communities in which it thrives, as well as the market as a whole.

Since beginning the Supplier Diversity program

Volkswagen has been highly successful in identifying and working with diverse vendors in both our direct and indirect business areas; however the strategy has had to shift in order locate partners with EV related experience, plus the development of companies into new business models in order to fulfill our needs. Through this we have been able to pinpoint gaps in processes, commodities, etc.

While locating gaps it was realized that often times new companies have likely not seen what our process looks like, they probably do not know that we perform reverse auctions for most of our negotiations, and they may not understand our stringent sustainability requirements; so why not create a solution to prepare them? Since the beginning of my tenure I've worked toward creating a systems and processes training program. I'm also currently in the exploratory phase for a supplier mentorship program. The training program will give minority and women owned businesses the opportunity to learn about our internal processes, but they will also begin to build relationships with myself and internal stakeholders. When these programs have reached maturity the next step would be to work towards creating Tier 1 and Tier 2 joint ventures. These programs are being planned and implemented to combat the ever changing vehicle market.

Volkswagen is tapping into the EV world very heavily and this now requires a change in programming. Instead of locating companies that are ready to go in the old space, we have to begin looking at options for creating a diverse EV supply chain. Identifying companies that have the capabilities to support EV's as well as companies that have the ability to pivot to supporting

EV's is a primary focus. The EV supply chain is a much more limited market as there are fewer suppliers. The challenge that we are currently facing is identifying minority and women owned businesses that have the ability to support EV's within this particular environment.

In short, the automotive landscape is heading in a positive and environmentally friendly direction. My goal is to run in parallel with the company's goals; however my role will be as an advocate disrupting the supply chain as it currently stands.