Supplier Diversity. Annual Report. Focus on Difference.

Transcription

1 Supplier Diversity Annual Report 2004

2 Policy Statement Sprint s supplier diversity policy affirms that certified diverse suppliers have the maximum opportunity to participate in providing products and services to Sprint. We are committed to increasing our purchasing initiatives from minority, women, disabled veteran and small businesses. By including qualified diverse suppliers, we continue to sharpen our own competitive edge providing Sprint with innovative solutions. These mutually beneficial relationships contribute toward the economic success of Sprint, and our diverse suppliers. Sprint will continue to lead the effort in recognizing the economic importance of utilizing diverse suppliers in the communities where we work and live. Gary Forsee Chairman and Chief Executive Officer Sprint

3 Diverse Spend is Essential Because diversity is essential to Sprint and its Supply Chain organization, we are continuing to expand competitive business opportunities with diverse suppliers. This contributes to our success and places Sprint as a leader within the telecommunications industry. In 2004, we increased our number of diverse suppliers by 20 percent and effectively promoted existing diverse suppliers among Sprint associates. Our total diverse spend, including second tier, was more than $544 million up from $500 million in This amount surpassed our target in spite of telecom consolidation and supply line challenges. Since diversity both strengthens Sprint and increases quality, we are dedicated to providing opportunities to diverse suppliers. In addition, we include diversity in everything we do. We strongly believe in and strive for a culture of inclusion. In 2005, we are increasingly promoting diversity in our workforce. In addition, we will continue to build and sustain long-term relationships with new and existing diverse suppliers. We will persistently embed diversity in our Supply Chain Management contractual agreements, which will encourage our non-diverse suppliers to include supplier diversity when supporting Sprint initiatives.

4 Critical Initiatives Increase Diverse Spend Several important factors contributed to a successful 2004, including top-level commitment from our Chairman and CEO, Gary Forsee, and his executive team. In addition, our Supplier Diversity organization s strong engagement and high level of motivation ensured Sprint s success in reaching diverse markets. Our greatest effort to increase diverse spend began with our CEO s announcement to media and local advocacy groups that Sprint would commit to 7 percent diverse spend in 2004, with a plan to increase that percentage to 9 percent in To attain these percentages, senior level executives were given specific diversity spend goals. To track adherence to this plan, Sprint s board of directors and the Diversity Council which is chaired by Forsee regularly reviewed diverse spend scorecards.

5 2004 Successes Executives Held Accountable Beginning in March of 2004, the Supplier Diversity team stipulated that each executive s business unit would meet a diverse spend percentage goal based on opportunity and diversity rich areas. To assist with this initiative, a team including an executive sponsor, supplier diversity consultants and end users was established for each business unit. These teams reviewed budgets, upcoming projects, commodity spend and available diverse suppliers. From this data, they developed action plans, including first and second tier opportunities, to ensure goals were met. Scorecards were then developed to monitor diverse spend progress. As a result, all business units successfully achieved diverse spend goals. Top Original Equipment Manufacturers use Diverse Resellers To increase diversity spend with our top original equipment manufacturers, we brought together a team of Sprint associates responsible for making IT sector purchasing decisions. Team members regularly met with these manufacturers and encouraged them to include diverse valueadded resellers. Opportunities were identified for IBM, Dell and HP, which allowed Sprint to acquire computer equipment and IT material from diverse suppliers at the same discount rate. More Diverse Suppliers Included on Sprint Procurement Online Tool (SPOT) SPOT is the preferred method for purchasing office, janitorial and apparel supplies as well as promotional items. To increase online diverse spend opportunities, merchandise and services provided by Concept to Promotion Inc. an entirely minorityand women-owned incentive marketing services company, and Imagination Specialties a woman-owned, full-service promotional marketing company, were added to SPOT.

6 2004 Successes Diverse Supplier Contracts Sprint signed a three-year contract with Parking Plaza a certified disabled veteran-owned company adjacent to the Kansas City International Airport. Parking Plaza has a 25,000 square foot facility and provides airport valet parking, numerous auto services and pet boarding for its customers. Our focus on the diversity-rich printing industry helped to introduce several top diverse suppliers to Sprint Consumer Solutions. As a result, diverse supplier, Nicholas Earth Printing, was awarded $2.9 million. Sprint Non-Diverse Suppliers Increased Second Tier Spend Sprint supplier second tier spend for 2004 reached 117 million a 40 percent increase over We attribute this success to Supplier Diversity actively encouraging Sprint primary suppliers to use minority, woman and disabled-veteran companies. Additionally, to better capture diverse spend across Sprint, we implemented Sprint Supplier Registration Tool so negotiators can track second tier spend for primary suppliers and identify prospective diverse suppliers for future business needs. This also enables negotiators to track diverse spend more effectively and provides easy access to diverse supplier information.

7 2004 Diverse Supplier Data Our first tier spend with 1,462 unique diverse suppliers totaled $427,046,379.

8 Supplier Testimonials Software House International A little over 2 years ago Sprint gave SHI an opportunity to become their Peripheral Supplier through a competitive bid process. This was a great opportunity for SHI and over the past 2 years the relationship has grown stronger and SHI has been provided with many more opportunities to support other product lines and business processes. Sprint has exhibited a strong commitment to SHI and has continuously rewarded SHI based on our performance. Everyone who we have worked with at Sprint has been very supportive of SHI and our development as a primary supplier in the Information Technology space. At Sprint, we are supported by the most highly professional, efficient and competent IT and procurement professionals in the industry today. Sprint has also shown a strong dedication to their Diversity Supplier program. As a diverse supplier SHI understands the importance of this program and in turn, has developed our own Diversity program to promote the use of Diverse suppliers for internal use goods and services, as well as having developed a mentorship program for other small and/or minority owned firms. Working with Sprint over the past 2 years has been a tremendous experience for SHI. We look forward to growing our relationship and to continue to succeed when given more opportunities. Respectfully Submitted, Melissa Graham Director, New Business Development SHI

9 Supplier Testimonials Controlled Environment Products The opportunity to service the needs of the Sprint Corporation is just that a true opportunity. The invitation to compete and to demonstrate your true value is afforded to all qualified suppliers regardless of size, gender or ethnicity. Our relationship with Sprint began more than five (5) years ago with such an opportunity and has grown into a mutually beneficial relationship. Our value to Sprint commitment to cost savings and superior customer service. The value to us growth and development in partnership with our customer and mentor. Sprint extends respect, trust and confidence to all value-added suppliers regardless of size, gender or ethnicity. Opportunity is the guarantee. The rest is up to you!

10 Sprint Honored for Diverse Supplier Support Sprint Supplier Diversity enjoyed another favorable year in The Minority Supplier Council, a nonprofit organization dedicated to the development of the minority business economy in Kansas City, elected Sprint Corporation of the Year and the Supplier Diversity organization received Buyer of the Year. Brian Britton, director of Supplier Diversity, was recognized as Best Newcomer of the Year and Michelle Robinson, manager of Supplier Diversity, also was elected as the 2005 Minority Business Enterprise Coordinator of the Year. In addition, DiversityBusiness.com, the largest diversityowned organization honored Sprint at its fifth-annual Multicultural Business Conference as it was among America s Top Organizations for Multicultural Business Opportunities in This award was based on more than 350,000 women and minority-owned businesses having an opportunity to choose the 50 best corporations.

11 Is Your Company Registered? Qualified certified companies seeking to participate in our diverse supplier program should visit our website at to review our program description and registration procedures. After completing the online registration form and providing proof of third party certification from one of the agencies listed on our site, your company will be entered into the Sprint supplier database. You will receive confirmation that your registration is complete. If an opportunity exists, your company will be contacted.