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AMR Confidential & Proprietary Supplier Diversity Training & Overview April 6, 2009.

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Presentation on theme: "AMR Confidential & Proprietary Supplier Diversity Training & Overview April 6, 2009."— Presentation transcript:

1 AMR Confidential & Proprietary Supplier Diversity Training & Overview April 6, 2009

2 AMR Confidential & Proprietary Program Focus Since the inception of our Program, we have been focused on bringing the added value of diversity to our procurement processes by proactively seeking out minority, diverse and women-owned businesses. 5

3 AMR Confidential & Proprietary Value of Diversity Value of Supplier Diversity Fastest growing segment of businesses New ideas / energy / passion US economy succeeds if small businesses succeed It’s important for AA’s suppliers to reflect our customers –We want our suppliers to be our customers

4 AMR Confidential & Proprietary Holistic Approach In the face of financially challenging times, AMR’s Diversified Supplier Program has been able to maintain its holistic approach to supplier diversity. Our focus and commitment remains on this overall approach to ensure our Program enables success through Diversity. Goal Setting Supplier Diversity Diversity Awareness Memberships Company Advocates Networking and Communications Volunteers to Organizations Employee Diversity 2

5 AMR Confidential & Proprietary Our program focus is re-affirmed by three important elements of our holistic approach that deal with AA’s activity in the minority and women communities. Memberships in various organizations provide greater program visibility. Examples include:  National Minority Supplier Development Council (NMSDC)  Member of NMSDC affiliates  Member of the Airline Transportation Group Subcommittee  Women’s Business Enterprise National Council (WBENC)  Members of WBENC affiliates Volunteers to Organizations - employees from Purchasing, Sales and Employee Resource Groups assist with many national, regional and local committees and diversity events.  Board members of :  DFW Minority Business Council  Oklahoma Minority Supplier Development Council  Women’s Business Council - Southwest  US Pan Asian American Chamber Southwest  American Indian Chamber of Commerce of Texas Networking and Communications with potential suppliers at trade fairs and opportunity fairs at our key cities around the system is a critical component for demonstrating our commitment.  AA participated in 39 trade fairs and events during 2008 Community Involvement

6 AMR Confidential & Proprietary Networking Events and Minority Trade Shows What’s the expected ROI? Increased pool of certified M/WBEs, identifying new suppliers Networking with other companies, benchmarking Brand awareness Increase awareness of AA’s focus on Supplier Diversity The key word is NETWORKING!! When attending events, meet new people –Identify new suppliers –Chat with colleagues from other corporations Ask probing questions to see if there may be an opportunity for a supplier with AA Spread out – don’t mingle with the AA crowd

7 AMR Confidential & Proprietary We recently rolled out our Second Tier Program, this is a step forward in strengthening our robust program. What is Second Tier? Definitions as per NMSDC Guidelines: 2nd Tier Supplier: Defined as a supplier that provides the products/services and invoices to the 1st Tier supplier for goods and services rendered. Direct 2nd Tier purchases: Defined as supplier products and services, which CAN be identified in support of Prime Supplier’s requirements. Indirect 2nd Tier purchases: Defined as supplier products and services, which CANNOT be identified in support of specific Prime Suppliers requirements (e.g. production support products and services such as temporary staffing, and facilities support services). Program Focus – New for 2009

8 AMR Confidential & Proprietary Second Tier Program – Important! Why is 2 nd Tier important? 2 nd Tier is important because: It builds a strong brand image and contributes to our Corporate Citizenship efforts Enhances customer and brand loyalty, helps us support the DFWMBC “Buy Those That Buy Us” campaign Helps us leverage other sources of competitive advantage 2 nd Tier is important, but REMEMBER: It is meant to be an enhancement to, not a replacement for, 1 st Tier M/WBE spend 6

9 AMR Confidential & Proprietary Diversity Classifications Minority Business Enterprise (MBE) –A business concern that is at least 51% owned and controlled by one or more individuals who fall within one of the following ethnic or national origin categories: African American Hispanic American Native American Asian-Indian American Women-owned Business Enterprise (WBE) –A business concern that is at least 51% owned by one or more women; or in the case of a publicly owned business, at least 51% of the stock is owned by one or more women, and the management and daily business operations are controlled by one or more women.

10 AMR Confidential & Proprietary SBA Definitions Why AA reports SBA spend –We are a contractor to the Gov’t and have to report Small Business spend annually Definitions: –Certified 8(a) minority-owned (SBA8a) A firm owned and operated by socially & economically disadvantaged individuals Must be certified by the SBA as an 8(a) firm –HUBZone Small Business (HUBZN) Historically under utilized Business zone – small business in distressed areas –Veteran-Owned Small Business (VOSB) A small business concern that is at least 51% owned by one or more veterans. In addition, one or more veterans must control daily management and business operations. –Service Disabled Veteran-Owned Small Business (SDVOSB) A small business concern that is at least 51% owned by one or more service disables veterans. In addition, one or more veterans must control daily management and business operations. –Woman-owned Business Enterprise (WBE) Same as Minority classification definition

11 AMR Confidential & Proprietary Why Certification is important… Often, Suppliers ask why they should get certified? –Credibility –Visibility that their company can’t buy with marketing dollars –Networking opportunities –Mentoring opportunities with local Minority councils

12 AMR Confidential & Proprietary Login: diversity Password: diversity DIVTRAK Registration via www.aa.com/supplierdiversitywww.aa.com/supplierdiversity DIVTRAK is resource for you to identify potential suppliers Save it as a favorite: https://americanairlinessecure.divtrak.com/enterprise/login.jsp

13 AMR Confidential & Proprietary Summary Supplier Diversity is important to American Airlines Continual focus on our Supplier Diversity efforts from our Senior Leadership team It’s the right thing to do Good business decision for American Airlines Your support and enthusiasm is critical to our success

14 AMR Confidential & Proprietary Q & A


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