Our Global Supplier Diversity program encourages a broad range of companies to join our supply chain. Diverse suppliers bring fresh ideas, offer innovative products and processes, and contribute to the economic strength of their communities. HP has maintained a Global Supplier Diversity Office for more than 40 years and currently belongs to more than 20 supplier diversity organizations in the United States, Canada, Europe, and Asia.
A diverse supplier base also helps us gain competitive advantage and supports our global citizenship efforts. Our supply chain mirrors our employee and customer base: global, diverse, and inclusive. In 2010, we estimate that more than $10 billion USD worth of business required HP to demonstrate our efforts in this area.
Supplier diversity is mandatory for fulfilling contracts with the U.S. government and with most U.S. states and municipalities. Large enterprise customers increasingly also have their own corporate responsibility policies and expect HP to demonstrate a commitment to diversity. In 2010, HP participated in supplier diversity sourcing events hosted by several enterprise customers, during which prospective suppliers met with HP and the procurement staff of the host companies.
Our supplier diversity program supports minority, woman, veteran, lesbian, bisexual, gay, and transgender-owned businesses, and small businesses generally to compete for HP business. Additionally, we continue to offer diverse supplier development programs, recommended technology solutions, and educational scholarship programs to ensure the next generation of leaders enjoys limitless opportunities.
Diverse supplier events
HP hosts events with local business councils and participates in national events that introduce diverse suppliers to potential customers. In 2010, HP procurement professionals participated in more than 20 such events in Canada, China, the United States, and the United Kingdom, resulting in opportunities for prospective diverse suppliers to participate in procurement sourcing initiatives. Constituents supported by HP’s sponsorship and participation include the National Minority Supplier Development Council (NMSDC) and its affiliates; Women’s Business Enterprise National Council (WBENC) and its affiliates; National Gay & Lesbian Chamber of Commerce (NGLCC) and its affiliates; and the Canadian Aboriginal Supplier Council (CAMSC).
In the United States, HP collaborates with SCORE (Service Corps of Retired Executives) and The Latino Coalition to sponsor the multicity Business Matchmaking Program (BMM). This initiative offers small businesses the opportunity to participate in governmental and major corporate procurement opportunities. In 2010, HP supported sessions in Dallas, Los Angeles, San Jose, and Baltimore.
In 2010, these events facilitated more than 15,000 meetings (75,000 in total to date) between small business owners and procurement representatives, including 300 between potential suppliers and HP. Since its inception in 2003, BMM has led to more than $800 million USD in contracts with participating corporations and government purchasing entities. BMM events frequently create direct opportunities for small businesses. For example, several small businesses were invited to respond to an HP request for proposal issued in late 2010 after attending a BMM event.
HP Tier II Supplier Diversity Reporting Initiative
HP recognizes the influence we have beyond our first-tier suppliers, and we encourage diverse purchasing practices throughout our supply chain. The HP Tier II initiative expands our supplier diversity objectives by requesting that our primary suppliers utilize and report spending with diverse businesses in the fulfillment of their contracts with HP. This initiative enhances, but does not replace, our existing efforts aimed at first-tier diverse suppliers.
If you are an HP supplier that we have asked to participate in our Tier II Supplier Diversity Reporting Initiative, please log in here.
Global Supplier Diversity
We continue to expand our supplier diversity program beyond the United States into Canada, Europe, and Asia Pacific, and we are working with governments and others to establish appropriate regional definitions of diversity that reflect local society and culture.
In 2010, we maintained our financial sponsorship of the Canadian Aboriginal and Minority Supplier Council (CAMSC), WEConnect Europe, and Minority Supplier Development UK (MSDUK), and became corporate members of Minority Supplier Development China (MSD China) and the Australian Indigenous Minority Supplier Council (AIMSC). During the year, HP's Global Supplier Diversity program also worked with internal and external stakeholders to support government requirements for diversity spending in Australia.
In August 2010, HP's Global Supplier Diversity director joined a National Minority Supplier Development Council delegation of corporate executives and minority business owners on a business mission to support MSD China. The delegation visited government entities, state-owned enterprises, corporate facilities (including an HP facility), and Chinese ethnic minority business owners in Beijing, Chengdu, and Shanghai.
In 2010, we continued our support of the HP Business Institute in South Africa. Established in 2008, the institute provides skills development to small Broad-Based Black Economic Empowerment (B-BBEE) information technology (IT) companies to help them break into the higher end of the IT market. Broadening their focus from selling commoditized products to selling IT solutions contributes to their long-term growth and sustainability. The institute plans to train 1,480 individuals within seven years and boost HP's overall investments in B-BBEE to more than $18 million USD.
HP's commitment to empowerment and transformation has been evidenced by its excellent scoring against the Department of Trade and Industry's gazetted Codes of Good Practice. HP is currently a Level 3 contributor to B-BBEE with a certified score of 80.55%, as externally verified by KPMG.
We also advance diversity among our resellers through our HP PartnerONE Diversity network. In 2010, we provided marketing and sales support to more than 250 diverse resellers, in the form of marketing subsidies, discounted products, and increased visibility. Learn more about this program.
In 2010, our total U.S. spending with small and diverse businesses increased by 17%. This is mainly due to our small and diverse supplier development programs, targeted outreach, and enhanced collaboration with HP's internal U.S. Public Sector and Commercial Small Business Subcontracting Programs.
U.S. Supplier Diversity purchasing results*, **, *** [million $USD]
- * All figures are for U.S. purchases from U.S.-based businesses.
- ** Data are for the 12-month period ending September 30 of the year noted.
- *** 2009 and 2010 data include HP Enterprise Services (formerly EDS) spending. Data prior to 2009 do not.
- **** HP did not report this metric prior to 2010, so historical data are not available.
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