Our supplier diversity program offers suppliers that would not typically approach HP the opportunity to join our global supply chain. We promote diversity among our suppliers because they bring fresh ideas, offer innovative products and processes, and contribute to the economic strength of their communities.
Reflecting the diversity in our customer base also presents an opportunity to gain a competitive advantage and supports our global citizenship efforts. In 2008, we estimate more than $10 billion in revenue came from customers requiring HP to demonstrate diversity in its supply chain.
Supplier diversity is mandatory for fulfilling contracts with the U.S. government and with most U.S. states and municipalities, as well as some U.S. commercial customers. In the United States, the main categories of businesses our supplier diversity program supports are minority-owned, woman-owned, veteran-owned and small businesses. HP has maintained a Corporate Supplier Diversity Program Office for more than 30 years in the United States and belongs to more than 20 supplier diversity organizations in the United States, Canada and Europe.
In 2009, our program is growing to incorporate the EDS Supplier Diversity and Small Business programs, enhancing our ability to expand our accomplishments and support globally.
Global supplier diversity
We continue to expand our supplier diversity program in Canada and Europe, and we are working with governments and others to establish appropriate regional definitions of diversity that reflect local society and culture. In 2008, we continued our financial sponsorship of the Canadian Aboriginal Minority Supplier Council (CAMSC) and UK-based organizations WEConnect and Minority Supplier Development-UK (MSD-UK). We sponsored and actively participated in various sourcing events.
In South Africa, our supplier diversity program is part of our strategy to comply with Black Economic Empowerment regulations. In 2008, HP South Africa set up the HP Business Institute (HPBI). Through HPBI, we make substantial investments in the skills development of black employees as well as new graduates seeking to enter the information and communications technology industry. The institute will train 1,800 people within seven years and will boost HP’s overall investments in broad-based black empowerment to more than R150m (more than U.S. $21 million).
Additionally, the HP Microenterprise Development Program provides start-up assistance and training in business and IT skills to entrepreneurs and businesses around the world with fewer than five employees. See the Entrepreneurship education section for details.
Supplier events
HP hosts events with local business councils and participates in national events that introduce diverse suppliers to potential customers. In 2008, HP procurement professionals participated in more than 20 such events in Canada, the United States and the United Kingdom. In the United States, we collaborate with SCORE (Service Corps of Retired Executives) to sponsor the multi-city Business Matchmaking Program, which offers small businesses the opportunity to participate in governmental and major corporate procurement opportunities. In 2008, we sponsored and participated in Business Matchmaking sessions in San Jose, California, and Miami, Florida. Since its inception in 2003, the Business Matchmaking program has enabled more than 64,000 small-business sales appointments resulting in $10 billion in contracts.
HP Connect
HP Connect Supplier Diversity Summits, held at least once annually on an HP campus, provide a forum for qualified suppliers to meet with HP buyers. During the HP Connect 2008 session, held in Palo Alto, California, 70 prescreened minority and woman business owners participated in 15-minute one-on-one meetings with HP commodity managers and HP tier one suppliers.
Diverse resellers
In addition to promoting diversity in our supply chain, we advance diversity among our resellers through mutually beneficial relationships. Through our HP PartnerONE Diversity network, we provided marketing and sales support to more than 300 diverse resellers in 2008. The support comes in the form of marketing subsidies, discounted products and visibility on a diverse reseller locator.
Performance
In 2008, our total U.S. spending with minority- and woman-owned businesses increased, despite consolidation in our overall supply chain. We exceeded our targets for total spending with small businesses and woman-owned small businesses.
U.S. supplier diversity purchasing results1,2,3
[$U.S. millions]
| Category |
2005 |
2006 |
2007 |
2008 |
| Total small businesses |
$3,011 |
$3,510 |
$3,106 |
$3,365 |
| Minority-owned small businesses |
$1,052 |
$1,150 |
$670 |
$842 |
| Woman-owned small businesses |
$407 |
$380 |
$440 |
$476 |