global supplier diversity - megan stowe, intel
TRANSCRIPT
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
~14%0%
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
g progra
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