Supply Chain

Boosting local economies by supporting diverse suppliers

Dell’s partnerships with small, woman-owned and minority-owned businesses help these suppliers create an economic ripple effect throughout their own supply chains and communities.


When World Wide Technology (WWT) first started reselling Dell computers in 1990, the minority-owned company had just seven employees in St. Louis. Over the past three decades, WWT has earned more and more of Dell’s business, becoming one of our biggest strategic partners in both supply chain management and channel sales. Today WWT is a global technology solution provider with $10.4 billion in annual revenue and more than 4,600 employees. And the company received the 2017 Dell EMC North America Partner of the Year Award.

At Dell, we’ve long believed in the importance of partnering with diverse suppliers like WWT. Since 2009, we’ve been a member of the Billion Dollar Roundtable, an elite organization of nearly 30 companies committed to spending at least $1 billion annually with minority- and woman-owned suppliers. Having a diverse supplier base gives our diverse customer base a wider range of innovative products and services. And supporting diverse suppliers enables them to grow their businesses and contribute to their local economies.

We’ve spent more than $3 billion annually for the past six years with minority-owned and woman-owned businesses globally. This has a ripple effect throughout our supply chain and throughout the communities our suppliers serve.

WWT can attribute much of its sales and workforce growth to its partnership with Dell, as we awarded the company its first contract outside of the U.S. When we expanded Dell’s manufacturing presence in Brazil in 2009, we asked WWT to supply our packaging parts and pieces using their just-in-time model. WWT opened a Brazil office, eventually expanded to Mexico and China, and is now a global supplier for our packaging materials. Today, 20 percent of WWT’s revenue comes from outside the U.S.

“We’ve always had strong advocates and sponsors within Dell who have helped catapult our company to the next level. Dell’s executives have helped us understand the company’s visions and plans and how we can be a part of them,” said Mark Franke, WWT’s vice president of global supply chain. “Their willingness to form relationships with us and persevere together through 20 years has been remarkable.”

WWT has in turn given back through advocacy and mentorship both within the local community and its own supply chain. They partner with several community organizations that promote interest in science, technology, engineering and math (STEM) and prepare students and young adults to be “future ready.” For example, they hold an annual STEM Student Forum and Hackathon at WWT’s St. Louis campus. Teams of students from public, private and parochial schools work together to find creative solutions to problems using STEM skills. WWT employees mentor and coach each team, and the winning school receives a $10,000 grant from WWT to support its STEM initiatives. And WWT provides underserved students with education and internships though its partnerships with National Academy Foundation and NPower.

WWT awards a $10,000 grant to winners of its annual STEM Student Forum and Hackathon.

Meanwhile, within its own supplier diversity program, the company provides networking and business opportunities to small businesses such as the African-American-owned general contractor TW Constructors. WWT Chairman and Co-founder Dave Steward, along with other WWT leaders, mentored and hired TW Constructors to complete several facilities projects for WWT over the last nine years, most recently WWT’s new global headquarters.

“Minority-owned businesses don’t always have the same access to opportunities. Without access, a business cannot demonstrate its value. We appreciate the access Dell has provided us over the many years and strive to extend the same access to other small, minority- and women-owned businesses.”

Juanita Logan, Director of Corporate Development at WWT

Supply Chain Goals

Supplier GHG Emissions Targets and Reporting

By 2020, Dell’s suppliers representing 95% of direct materials spend, along with key logistics suppliers, will set specific greenhouse gas (GHG) emissions reduction targets and report on their emissions inventory

*Progress to goal is being calculated based on direct suppliers only.

88%* TO GOAL
FY18 PROGRESS

Suppliers representing 84% of our direct materials spend, along with 60% of our key logistics suppliers, have set GHG emissions reduction targets and publicly report their emissions inventory.

84%

direct suppliers

60%

key logistics suppliers

2-YEAR TREND
FY18 - 84% of 95%
FY17 - 81% of 95% Percentage of direct suppliers with GHG reduction targets
RELATED SDGs

Climate Action (13)

Supply Chain Transparency

Demonstrate 100% transparency into key issues within our supply chain, working with suppliers to mitigate risks in those areas. To help achieve this goal, we will continue to track the following metrics:

SUBGOAL
Supplier Audits

Audit 100% of high-risk [1] direct materials suppliers and select service suppliers [2]

91% TO GOAL
FY18 PROGRESS

It is our goal to audit 100% of our high-risk supplier facilities on a two-year cycle. In FY17–FY18, 91% of our high-risk supplier facilities (including first-tier and sub-tier supplier facilities) underwent Responsible Business Alliance third-party audits. As a result of the Dell and EMC integration, the number of supplier sites considered high-risk increased. We have adjusted our resources and will audit all remaining high-risk supplier sites in FY19.

91%
2-YEAR TREND
FY18 - 91% of 100%
FY17 - 90% of 100% High-risk supplier audits
RELATED SDGs

Decent Work and Economic Growth (8), Reduced Inequalities (10), Responsible Consumption and Production (12)

[1] Suppliers are risk-assessed based on geographic location, business relationship, commodity and past audit performance.
[2] Suppliers of logistics, call centers and packaging, among other commodities, are included at Dell’s discretion based on operational risk.

SUBGOAL
Supplier Sustainability Reports

Ensure that Dell's suppliers representing 95% of direct materials spend publish a sustainability report in accordance with Global Reporting Initiative (GRI) or equivalent recognized global framework

95% TO GOAL
FY18 PROGRESS

In FY18, suppliers representing 90% of our direct materials spend published a sustainability report.

90%
2-YEAR TREND
FY18 - 90% of 95%
FY17 - 87% of 95% Percentage of direct suppliers with GRI reports
RELATED SDGs

Responsible Consumption and Production (12)

SUBGOAL
Water Risk Mitigation Plans

Require a five-year responsible water risk mitigation plan from our top 250 direct materials supplier facilities in water-stressed regions or with water-intensive processes

60% TO GOAL
FY18 PROGRESS

Through FY18, 150 of our supplier facilities in scope have submitted five-year water risk mitigation plans. In FY18, 110 projects — ranging from water efficiency to water reuse improvements — were implemented by suppliers. These projects reduced the amount of wastewater generated by 2.4 million cubic meters and saved over 815,000 cubic meters of freshwater.

150

supplier-facilities with water risk mitigation plans

2-YEAR TREND
FY18 - 150 of 250
FY17 - 100 of 250 Cumulative number of facilities with water risk mitigation plans
RELATED SDGs

Responsible Consumption and Production (12)