global supplier diversity - megan stowe, intel

Intel Corporation creates Prime Opportunities for Diverse Suppliers and Small Business’s

Megan Stowe9 March 2012

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Agenda Who are we?

What is Supplier Diversity?

Why is it important to US Corporations?

Journey to being a Diversity Leader

Case Studies

Opportunities and Challenges Looking to the Future

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What do they all have in common?

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Intel Corporation:The World’s Largest Semiconductor Manufacturer

$54B Revenue62 Countries

~100,000 Employees

$10.8B Capital Spends

~$16BSupply Chain

Customers,120 Countries

10,000+ Suppliers

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Supplier Development & Diversity

Why Supplier Diversity?– Intel’s Supplier Diversity initiative encourages the inclusion of underutilized/under-represented/SME suppliers in bidding

opportunities throughout our worldwide supply chain.– Supplier Diversity contributes to economic development among diverse and small business segments and fosters capacity building

throughout the supply chain where we live and work.– Intel’s Supplier Diversity initiative reflects our commitment to leadership in the area of corporate responsibility, fulfills customer

expectations and is evaluated by investor analysts.

Our Commitment to Supplier Diversity– Supplier Diversity at Intel is a global initiative.– To define diverse suppliers at Intel.– 100% inclusion in all eligible bid opportunities as reported annually in Intel’s Global Citizenship Report.– Support first tier diversity spends through indirect procurement and facilities management services annual spending goals with

diverse suppliers.– Requires second tier supplier diversity reporting by identified Intel non-diverse, primary suppliers on a quarterly basis.

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Why organizations have supplier diversity initiatives

• Environment Customer/Stakeholders and Investors requirements Government contracting Regulatory requirements

• Niche/Local market Corporate sales strategies Supporting local business

• Leadership Corporate social responsibility

Supplier diversity programs may have one, two or all elements

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Our Journey

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New

busi

ness

• New Business ventures and expansion into emerging markets are driving corporate procurement requirements

Boot cam

ps/map days

• Small Business tech boot camps

• Intel Capital – Technology map day

• Working with companies where we have invested to help them connect to big corporations

NGO’s

/ Mentorin

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mme

• Work with NGO’s • “

We Connect”, “She Business”, “National Minority Supplier Development council”, “National gay and lesbian chamber of commerce

• Mentor suppliers and work with improving their business

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This does not happen over night but is a journey

Today

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Case studies Design Print supplier

Women owned business initiative

“Running any business has its challenges. But small, diverse businesses face even greater hurdles. Intel’s Diversity Supplier program has helped our business prepare for opportunity, open doors, and cultivate new relationships.”

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Challenges and Opportunities

Monitoring diversity data is complex and challenging

Intel is developing an enterprise solution to enable suppliers to update their business information easily

Small/Medium business standards are regulated by the US SBA based on the North American Industry Classification System (NAICS codes)

<500 employees or <$7M receipts depending on industry

International adoption of UNSPSC codes could fulfill a similar standard

Cost of certification can be a problem for suppliers so would be good if government could help sponsor this as they do in the US.

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What is changing-evolving supplier diversity definitionsto reflect our global supply base and business

Looking to the Future

What is at risk- achieving goals with evolving procurement objectives and processes

The challenge- Communication, adoption and accountability

Thank You

For more information contact supplierdiversity@intel.com

Visit supplier.intel.com/supplierdiversity