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Intel’s Preferred Supplier Program: An Overview August 2006
What is the Preferred Supplier Program? • The Preferred Supplier Program is • An Intel strategy aimed at helping Intel focus resources on enhancement of purchasing processes and tools for optimization of product quality, cycle time, cost, and customer experience. • A managed group of suppliers that Intel has selected to provide goods and services. • A tool to enable educated decision-making by Intel employees on the selection of qualified and approved suppliers to fulfill the purchase request of a specific good or service in a Product Category for an Intel location • Indirect Material / Services = goods and services that are not used for making of a product • Covers everything from advertising to construction to the kitchen sink (literally) Intel Confidential
How are Suppliers Selected? • Criteria • Selected as “preferred” based on their ability to help Intel maintain its competitive advantage. • Offer appropriate balance of “world class” quality, technology, total cost, customer service, and availability for their products and services. • Process • Teams of experienced Intel procurement professionals around the world, representing a range of expertise, work together to contribute to the decision making process. Intel Confidential
Small Businesses and Diversity • Small Businesses and Diversity (Minority/Women Owned) Suppliers • Intel maintains a strong commitment to supplier diversity spending and to meeting annual goals. • We will continue to increase our diversity goal reflective of supplier market availability. • Intel is committed to economic development and to supplier diversity goals and the development of small business. • The Preferred Supplier Program will enable Intel purchasing professionals to spend more time developing diversity and small businesses to meet Intel’s needs. Intel Confidential
Supplier Benefits • What are the benefits to Preferred Suppliers? • Better positioned to actively compete for Intel’s business • Closer engagement with Intel procurement orgs • Better understanding of Intel’s goods and service needs and requirements • Better understanding of Intel’s procurement related plans • Access to supplier improvement programs • Faster order processing Intel Confidential
Am I a “preferred” supplier? • How will I know if I am a preferred supplier? • If you are selected as a Preferred Supplier, you will receive a letter from an Intel Purchasing representative. • To be considered for the Intel Preferred Supplier Program • Submit company information to Intel for review through the Supplier Intake Tool (SIT) located at supplier.intel.com . • All suppliers are reviewed at least annually to assure Intel has the best qualified world-class supply base providing a competitive advantage. • Should potential suppliers be identified through the Supplier Intake Tool, the procurement professionals will engage the supplier. • Intel’s Supplier Intake Tool provides access opportunity to suppliers globally. • The Preferred Supplier Program is for suppliers who can pass and meet the rigorous qualification criteria and requirements. • For more information please visit the Intel Preferred Supplier Program pages atsupplier.intel.com. Intel Confidential