Introduction
It is now the policy
of Franklin Precision Industry, Inc to achieve
supplier diversity objectives by making minority
sourcing a major priority in our annual planning
process. It is our expectation that our suppliers
will, in turn, follow this example.
We hope to raise
the level of commitment of our suppliers, by establishing
a 5% minority business enterprise (MBE) Supplier
Purchasing Target.
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FPI uses the Supplier
Expectation Manual to communicate our expectations to
suppliers each year. As the Supplier Diversity Program
was not included in this year’s manual we are
asking you to accept this program now. FPI Purchasing
develops both supplier (priority and general) and individual
expectations for our suppliers to achieve in the coming
year. The purpose of supplier expectations is to highlight
key priority activities and emphasize broader issues
universal to all suppliers. Individual expectations,
on the other hand, are developed uniquely for each supplier
and include specific targets in the key areas of quality,
delivery, cost and minority sourcing. These individual
targets are designed to clearly communicate specific
expectations to measure and evaluate supplier performance.
FPI’s general expectation is for
our suppliers to emphasize their commitment to minority
supplier development. By establishing a formal FPI Supplier
Diversity Program and an individual minority sourcing
expectation, FPI is raising the general expectation
to a higher, more focused level. We are reconfirming
our commitment to supplier diversity by developing specific
procurement targets for our suppliers. To meet your
target of 5%, it is critical that each supplier incorporates
procurement practices that support operating plans.
FPI will expect all suppliers to track
and report their minority expenditures on a semi-annual
basis through the FPI Supplier Diversity Program. As
supplier performance progresses, FPI will continue to
refine its evaluation of supplier performance by re-evaluating
targets based on the current condition of our supply
base and that of the overall automotive industry.
Supplier performance will be monitored
closely. Strong performers will be the companies that
demonstrate the depth of their commitment by developing
innovative, effective and successful minority sourcing
programs within their organizations. Programs such as
these, which treat FPI MBE purchase targets as a floor
not a ceiling, will add significant value to our business
and will be considered a competitive advantage to us
here at FPI.
Background
The practical application
of FPI Supplier’s Diversity Policy rests on a
three-corner foundation:
1) We actively pursue MBE (Minority
Business Enterprise) suppliers;
2) We champion the cause of supplier diversity and facilitate
communication about it throughout FPI.
3) We administer the FPI Supplier Diversity Program
to focus greater attention on this issue among our suppliers,
and we participate in industry training sessions and
workshops as defined by FPI.
Each year FPI attends minority business trade shows
across the country to network with prospective new MBE
suppliers and share information about our operations
and our needs for manufacturing support; events, meetings,
and seminars sponsored by the regional affiliate councils
of the National Minority Supplier Development Council.
We intend to build lasting business relationships between
our Suppliers and MBEs. We strongly encourage our entire
list of suppliers attend and support programs such as
Toyota Opportunity Exchange or MBE Conference.
Facilitating communication
about supplier diversity throughout FPI ensures that
buyers and others have the latest information about
key program developments, new opportunities for including
MBE’s in our business and regular updates to our
MBE database. Our internal work also involves referring
MBE’s to specific buyers when promising opportunities
arise.
To get Instructions
and Documents, please click >>HERE
to download the document.
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