SCM Highlights from IBMs New Corporate Responsibility Report

Every year or so IBM, the company where I am employed, issues its updated corporate responsibility report, which always contains a section on supply chain.  Here are a few notable updates:

• In 2012, approximately 90 percent of IBMs global spend in Production and Logistics Procurement (in support of our hardware and logistics business operations) occurred with 50 firms and in Services and General Procurement (in support of our software, services and overall operations) approximately 45 percent of our global spend was with the following firms another 50 firms -- a good sign of strategic supplier relationships
  
• In 2012, IBM chartered 257 full audits and 120 re-audits for a total of 377 assessments of suppliers in 29 countries, the largest number of countries with audit activity in a single year. And IBM launched assessments for the first time in Bulgaria, Colombia, Costa Rica, Dubai, Peru and Slovenia, bringing the roster of countries with initial audits to 31
  
• Of the 257 full audits IBM conducted in 2012, 171 were on suppliers assessed for the first time. The audit performance of these suppliers is depicted in the chart below. This data shows that initial audit compliance has improved significantly in the areas of Health and Safety, Working Hours, Wages and Benefits, Communications, Environmental, Respect and Dignity, Nondiscrimination and Record Keeping.
   
• In 2012, IBM successfully transitioned thousands of part numbers that were affected by the conclusion of the European Union’s RoHS Directive—designed to restrict the use of hazardous substances in electrical and electronic equipment—exemptions 7c3 and 11b. As of January 1, 2013, IBM products shipped into the EU are fully compliant and lead-free.
  
  
• In 2012, IBM conducted $3.3 billion of global business with first- and second-tier diverse suppliers. Of that, $2.6 billion was contracted with first-tier suppliers, up from $2.5 billion in 2011. And of that, we did $939 million in business with non-US first-tier diverse suppliers, representing a 7 percent increase from the previous year. The growth in diverse spend outside the United States is the result of our creation of full-time diversity positions in growth markets such as China.
  
• IBM is a founding member of the WBENC, WEConnect International, the National Gay and Lesbian Chamber of Commerce and US Business Leadership Network’s Disability Supplier Diversity Program.