Global Supplier Diversity - Megan Stowe, Intel
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This document summarizes Intel Corporation's supplier diversity program. It discusses why supplier diversity is important for large corporations from an environmental, niche market, and leadership perspective. It outlines Intel's commitment to supplier diversity and goals for spending with diverse suppliers. The document then discusses Intel's journey to becoming a diversity leader over time, provides examples of diverse supplier case studies, and looks at ongoing opportunities and challenges in monitoring diversity data and adapting definitions globally.
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Global Supplier Diversity - Megan Stowe, Intel
- 1. Intel Corporation creates Prime Opportunities for Diverse Suppliers and Small Business’s Megan Stowe 9 March 2012
- 2. 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 2
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- 8. What do they all have in common? 8
- 9. Intel Corporation: The World’s Largest Semiconductor Manufacturer $54B Revenue Customers, 62 Countries 120 Countries ~100,000 ~$16B Employees Supply Chain $10.8B Capital 10,000+ Suppliers Spends 9
- 10. 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. 10
- 11. 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 11
- 12. Our Journey 1998 Today 0% ~14% • New Business • Small Business tech • Work with NGO’s New business NGO’s / Mentoring programme Boot camps/map days ventures and boot camps • “We Connect”, “She expansion into • Intel Capital – Business”, “National emerging markets Technology map day Minority Supplier are driving • Working with Development corporate companies where we council”, “National procurement have invested to help gay and lesbian requirements them connect to big chamber of corporations commerce • Mentor suppliers and work with improving their business This does not happen over night but is a journey 12
- 13. Case studies Design Print supplier “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.” Women owned business initiative 13
- 14. Challenges and Opportunities 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 MonitoringCost of certification can beand challenging diversity data is complex a problem for suppliers so would be good if government could help sponsor this as they do in the US. 14
- 15. Looking to the Future What is at risk - achieving goals with evolving procurement objectives and processes What is changing -evolving supplier diversity definitions to reflect our global supply base and business The challenge - Communication, adoption and accountability 15
- 16. Thank You For more information contact supplierdiversity@intel.com Visit supplier.intel.com/supplierdiversity
Editor's Notes
- We started in 1998 – it is a journeyNeed to understand what is an SME/diverse supplier?What are the goals/Targets? Is this by industry ?New Business ventures and expansion into the emerging markets are driving corporate procurement requirements – Consolidation of supply base can change due to local market needs etcSmall Business tech boot camps Intel Capital – Technology map daysInclude other large techs and take companies we are investing in and help them access big corporationsWork with NGO’s We Connect, She Business, National Minority Supplier Development council, National gay and lesbian chamber of commerce – 3 of these Intel is a co-founding member.Mentor suppliers and work with improving their business
- Design print company who is a small business and a diverse supplier started as a pure print collatoral supplier – once they proved themselves moved onto doing our some of our product printing and now are doing internet media and apps thus growing their capabilities along with their size and revenue. We also invested in their CEO and sponsored a business education opportunity to help further develop their capabilities.WOBI – looking at investing more in our WBE – up to approx 5% by 2020. This is an Intel foundation initiative to include women and girls in the technology sector of business. Did you know that by 2015 women would represent 40% of the paid workforce but only 1% of the wealth. Women own 40% of private businesses in the US but they create only 8% of the venture-backed tech startups. Women’s ability to access income, technology, and paid work has a greater improvement in children’s welfare (vs. men).As we formulate our strategy on doing this we have come up against an number of roadblocks which run across both SMEs and diverse suppliers – the identification process of these organisations. While working within the EU privacy laws it is still hard to understand the true number of Women owned biz or for that case SMEs internationally as many countries do not have a certification process or do not have a definition of what these are. Along with the fact that we are also working out a further mentoring program to ensure these businesses are at a level playing field when they come in to bid for the Intel business.Intel capital group have agreed to partner with us to invest in tech WBEs limited knowledge and cost with certification – government needs to help sponsor the USSBA program – similar way and cost is minimal – No std in EMEA
- US regulators have helped us focus on diversity along with investors, customers etc thus as regulators have an opportunity to focus the minds of industry on SME
- Consolidation often flies in the face of Innovation and often comes from our Niche suppliers/SMEs verse the large corps – due to agility and typically more specialised.