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    Glossary of Terms

    African American - A U.S. citizen having origins in any of the Black racial groups of Africa.

    Asian Pacific - A U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.

    Certification - A minority or women-owned firm whose ownership, control and operation have been verified by a qualified, independent third party. Examples are 8(a) certification by the U.S. Small Business Administration and MBE certification by the National Minority Supplier Development Council.

    Direct Second-Tier Spend - Diverse supplier expenditures for goods and services reported by the prime supplier that can be directly linked to CHEP (ex: 100% of Prime Suppliers' spend with second tier supplier in support of CHEP). A contracted majority supplier subcontracts to a qualified minority- and/or woman-owned business for goods or services that directly support the fulfillment of a CHEP contract.

    Diverse/Diversity - An easy way to refer to all minorities and women with a single word. Often the term "minority" is used to describe a group that represents a smaller percentage of the total population than another group or groups. In the United States a minority is a person who is an American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, or a person whose ethnicity is Hispanic or Latino.

     Diverse Supplier - A business that has majority ownership by a minority or woman.

    Economic Inclusion - The process of overcoming the barriers that prevents people from participating fully in the workplace. This is important to the success of the region's economy. 

    Front Company - Occurs when a minority company acts as a "pass through" for work done on a contract and/or when the company claims MBE and/or WBE status but is actually is owned by a non-minority or male. M/WBE certifications are used as a filter to screen for front companies.

    Globalization - Describes the increased mobility of goods, services, labor, technology and capital throughout the world.

    Hispanic - A U.S. citizen of true-born Hispanic heritage, from any of the Spanish speaking areas of Latin America or the following regions: Mexico, Central America, South America and the Caribbean Basin only. Brazilians shall be listed under Hispanic designation for review and certification purposes.

    HUB Zone Small Business - Means a small business that appears on the list of Qualified HUB Zone Small Business maintained by U.S. Small Business Administration.

    Indirect Second-Tier Spend - Diverse supplier expenditures for goods and services reported by the prime supplier that cannot be directly linked to a CHEP project (e.g., facilities maintenance, office supplies, and janitorial services) but rather for numerous customer contracts. The contribution of the diverse suppliers is proportionately allocated to customers based on percent of sales (ex: If CHEP represents 10% of prime's total revenue, then only 10% of prime's spend with second-tier supplier can be counted).

    Minority Business Enterprise (MBE) - A business that is at least 51% owned operated and controlled on a daily basis by one or more (in combination) Diverse Americans.

    MWBE (pronounced M-W-B-E) - An acronym for a Minority Woman Business Enterprise; a minority-woman-owned business that has received MWBE certification.

    MWBE Ownership - For a sole proprietorship or partnership to be deemed a minority business enterprise, at least 51 percent of the company's assets or interests must be owned by a minority person.  For a corporation to be considered a minority business enterprise, legal and equitable ownership of at least 51 percent of all classes of stocks, bonds and other securities issued by the corporation must be owned by a minority person or minority persons.  Any ownership interest held by a minority person which is subject to an option or security interest held by a non-minority person or business entity affecting the incidence of operation and control of shares in the profits of the enterprise, shall not qualify as being an interest held be such minority persons.

    NAICS Code - North American Industry Classification System (NAICS) size standards used by the SBA to determine if the business is large or small.

    National Women Business Owners Corporation(NWBOC) - Has led the way for women business owners to obtain WBE Certification. Created in 1995, NWBOC was established to increase competition for corporate and government contracts through implementation of a national certification program for women business owners. The development of our national Woman Business Enterprise (WBE) certification program sponsored by IBM, involved cooperation and input from over 700 public and private sector individuals. The result was the creation of the WBE Application, the process, and the NWBOC Standards and Procedures.

    NMSDC (pronounced N-M-S-D-C) - An acronym for the National Minority Supplier Development Council (www.nmsdc.org/nmsdc), a 3rd party certifier (not a state or federal agency), that certifies minority (for their certifying purpose. The National Minority Supplier Development Council ® (NMSDC®) provides a direct link between corporate America and minority-owned businesses. NMSDC is one of the country's leading business membership organizations. It was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.

    Native American - A person who is an American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part.  Native Americans must be documented members of a North American tribe, band or otherwise organized group of native people who are indigenous to the continental U.S. and proof can be provided through a Native American Blood Degree Certificate. (i.e., tribal registry letter, tribal roll register number).

    Prime Supplier (Tier I) - A supplier that contracts directly with CHEP to provide goods or services and has a contract or purchase agreement to provide products and/or services to CHEP.

    RFX - An RFX can be thought of as a general mechanism that allows buyers and sellers to conduct business: often the exchange of specific items or services for a specific price, but also the exchange of information, such as capabilities or willingness. A common RFX is the RFQ (request for quote) - another is the RFP (request for proposals). Other RFX types include RFBs (requests for bid), RFIs (requests for information), auctions, reverse auctions, and negotiations.

    Second-Tier (Tier II) - A subcontractor who provides goods or services to Tier I (prime) CHEP suppliers.

    Set Aside Programs - These programs (created by a 1977 law) allow government agencies to limit competition to small-business bids only. These are not a part of the CHEP Supplier Diversity Initiative.

    Site Visit - Meeting between a certifying agency and a MBE/WBE applicant to verify certification application items. Not all agencies conduct site visits.

    Small Business - Manufacturing (500 or less employees); U.S. Citizen.

    Small, Disadvantaged Business (Minority) - Must be 51% Owned, Controlled & Operated by African-American, Hispanic American, American Indian, Asian-American, Native Hawaiian or Eskimo, Must be U.S. Citizen, must be Certified NMSDC.

    Spend - The amount that a corporation entity purchases from a MWBE; this amount is typically tracked both by individual vendor and in aggregate.

    Sole Source -  A "Sole Source" purchase means that only one supplier (source), to the best of the requester's knowledge and belief, based upon thorough research, and is capable of delivering the required product or service. Similar types of goods and services may exist, but only one supplier, for reasons of expertise, and / or standardization, quality, compatibility with existing equipment, specifications, or availability, is the only source that is acceptable to meet a specific need

    Statement of Work - A statement  of work (SOW) is a formal document that captures and defines the work activities, deliverables, and timeline a vendor must execute in performance of specified work for a client. The SOW usually includes detailed requirements and pricing, with standard regulatory and governance terms and conditions.

    Standard Industrial Classification (SIC) - is a United States government system for classifying industries by a four-digit code.

    Strategic Sourcing - A systematic approach to minimize costs, streamline processes, and improve quality; results in the clustering of like purchases from fewer vendors.

    Strategic Supplier - A supplier that provides key supplies and/or services in a particular commodity area. Strategic suppliers add a high degree of value to the supply chain management process by reducing costs, aggregating demand, etc.

    Supplier Development - Any effort by a buying firm with a supplier to increase the performance and/or capabilities of a supplier and to meet the buying firm's short- and/or long-term supply needs. Supplier development activities may range from an informal supplier evaluation and a request for improved performance to extensive efforts.

    Supplier Diversity - A business program that encourages the use of previously underutilized minority owned vendors as suppliers. It is not directly correlated with supply chain diversification, although utilizing more vendors may enhance supply chain diversification.

    Supplier Mentoring - A supplier diversity-specific definition in the 2002 edition of the SBA Mentor-Protégé' Program which defines a mentor as "A business, usually large, that has created a specialized program to advance strategic relationships with small businesses."

    Woman Business Enterprise (WBE) - Must be 51% Owned, Controlled & Operated by one or more females; must be a resident of the United States, must be certified by WBENC or NWBOC.

    WBENC (pronounced W-B-E-N-C) - An acronym for the Women's Business Enterprise National Council (www.wbenc.org), a 3rd party ertifier (not a state or federal agency), that certifies women usinesses. The WBENC certification for women-owned businesses is ne of the most widely recognized and respected certifications in the nation. Accepted by hundreds of corporations within the country and a number of federal, state, and local government agencies, WBENC certification is an important marketing tool for expanding a company's visibility among decision makers in their corporate supply chain.