Supplier Management Analysis for Intel Corporation

New Venture Group, a student-run consulting organization at ASU, collaborated with representatives from Intel Corporation to determine current best supplier management practices in the area of capital equipment procurement. The New Venture Group team accomplished this goal by completing the following deliverables: (1) Research and consolidate best practices for managing capital equipment suppliers. (2) Interview suppliers of capital equipment in the semiconductor industry to understand their motivators. (3) Examine top supply chain companies that utilize capital equipment manufacturers within their procurement systems. (4) Gather data and knowledge in conjunction with Intel Corporation's current practices to improve the effectiveness of the company's supplier management techniques regarding capital equipment manufacturers. The thesis report outlines the key insights and recommendations that our team extracted from the research that we performed. Our team analyzed peer-reviewed journal articles, conducted interviews with suppliers of capital equipment to semiconductor manufacturers, and surveyed buyers at top companies to reach important key insights. We then used these insights to develop the following strategies to improve Intel's capital equipment supplier management structure: All Suppliers 1. Allow high-performance suppliers to select one reward from an established portfolio of incentives. 2. Increase measurement frequency for specific metrics. 3. Use collaborative two-way measurement with a corresponding balanced scorecard. Key Suppliers of Critical Products 4. Conduct gap analysis through supplier self-assessments. 5. Implement collaborative target pricing. 6. Delegate an Ombudsman. 7. Create a value map to determine the strengths and incentivize collaboration. 8. Create comparison charts comparing supplier technological competencies versus Intel's product developments. 9. Establish a systematized product development process and strategic sourcing strategy that supports the continuation of Moore's Law.