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.
Intel Corporation Creates Prime Opportunities for Diverse Suppliers and Small Businesses
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
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
Notas do Editor
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.