Supplier Diversity

Doing Business With Raytheon

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Supplier Diversity Focus

Raytheon’s “Supplier Diversity” Program is designed to drive supplier source selection strategy and ensure compliance with:

Public Law Federal Acquisition Regulations Customer Requirements Company Policy

concerning the utilization of businesses that are:

Small Small Disadvantaged Woman Owned – Small Businesses Veteran Owned – Small Businesses (including Service Disabled) Small Businesses meeting Hub Zone Criteria (historically under-utilized) Historically Black Colleges, Universities and Minority Institutions Minority and Women-Owned Businesses

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Supplier Diversity Built in the Organization

Benita FortnerSupplier Diversity Director

William SwansonChairman and CEORaytheon Company

John HarrisVice President

Contracts & Supply Chain

Mike JarrettMissile Systems

Vivek Kamath *Space & Airborne Systems

Zack NoshirwaniIntegrated Defense Systems

Vince HrenakNetwork Centric Systems

Paul LoveladyIntelligence &

Information Systems

Dave DickmanRaytheon TechnicalServices Company

Vivek KamathSupply Chain Operations

Organized to support supplier diversity objectives

Supply Chain Leadership team serves as RTN Supplier Diversity Council

*Acting

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…and Staffed to develop and executeInitiatives and outreach strategy– Facilitate Collaboration

…Key players in local customer interface and developing goals

Benita FortnerRaytheon

Supplier Diversity Director

JoAnne ArvizuMissile Systems

Lisa AucoinIntegrated Defense Systems

Lee WesnerIntelligence &

Information Systems

Shirley PattersonSpace & Airborne Systems

Don BrechtelNetwork Centric Systems

Crystal KingTechnical

Services Company

Vin BoscoSupply Chain Operations

Supplier Diversity Leadership Team

Replace - this

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Supplier Diversity - Responsibilities Provide assistance for “focus businesses” who are interested in doing

business with Raytheon

Assist in identifying potential sources for procurement opportunities and sourcing strategies.

Ensure supplier diversity is addressed in all procurements and sourcing strategy activities including proposal support

Track supplier diversity performance and provide customer and industry reports.

Conduct training to ensure that Raytheon personnel are aware of the Raytheon Supplier Diversity objectives

Provide outreach as a means of developing and counseling “focus businesses”

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Supplier Diversity Business Leader

Complete Supply Chain Support

Supply Chain Expertise

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Traditional Supplier Requirements Performance Performance Performance Cost Quality Schedule / Delivery

Contemporary Supplier Requirements Customer considerations Competitive market enablers Supplier life cycle in the value chain

Supply Chain Strategies In Global Competition

Supplier Diversity Integral to Supply Chain Strategy

Supply Chain Process Enablers E-Enabled business transactions

Internet-based transactions Inventory Management Processes

Barcode technology Just-in-time deliveries from suppliers Supplier managed inventory Warehouse management outsourcing

Supplier performance management Supplier scorecards Web based supplier communications Supplier consolidation and rationalization

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Sourcing Opportunities and the Global Supply Base

Direct72%

Indirect28%

Chemicals

Facilities

IT & Com

Logistics

Machinery & Equipment

Media services

MRO

Contract Labor

Procurement tools

Travel

Utilities

Indirect Commodities

Direct Commodities

Castings & Forgings

Machined Parts

Hardware

Electrical

Flex Harnesses

Magnetics

Semiconductors

Capacitors

Connectors

MicroWave devices

Servos

TravelIT

Contract Labor

Connectors

Semiconductors

Capacitors

Other Categories:SubcontractsCCA’sPower SuppliesDirect Computersetc.

Remarkable Variation in Supply Chain

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National, Regional and Local National, Regional and Local eventsevents

Focused outreach and Focused outreach and networking within strategic networking within strategic business areasbusiness areas

Raytheon business specific Raytheon business specific eventsevents

Emphasis on Veteran, Hub Emphasis on Veteran, Hub Zone and Women businessesZone and Women businesses

Performance - Relationships - Solutions

Outreach drives supplier diversity performance

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Performance - Relationships - Solutions

Outreach to meet potential Outreach to meet potential supplierssuppliers

Share Raytheon strategy and Share Raytheon strategy and objectivesobjectives

Respond to customer requestsRespond to customer requests– Significant number of requests Significant number of requests

to support customer, industry to support customer, industry and advocacy organization and advocacy organization initiatives and eventsinitiatives and events

Build Relationships

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Performance - Relationships - Solutions

Identify Gaps – Variance in Supply Chain

CastingsCastings

Chemicals & GasesChemicals & Gases

ConnectorsConnectors

Electrical ProductsElectrical Products

Guidance and ControlsGuidance and Controls

Hardware and Bearings Hardware and Bearings

MachiningMachining

Major AssembliesMajor Assemblies

Manufacturing Lab SuppliesManufacturing Lab Supplies

Packaging SuppliersPackaging Suppliers

Wire & CableWire & Cable

Microwave DevicesMicrowave Devices

OpticsOptics

Outside ServicesOutside Services

Passive DevicesPassive Devices

Power SuppliesPower Supplies

Propulsion Warheads & Propulsion Warheads &

PyrotechnicsPyrotechnics

PWBs / CCAsPWBs / CCAs

SemiconductorsSemiconductors

Test EquipmentTest Equipment

Art/ Computer Graphics/ Text ProcessingChemical & Gas ManagementColor Film ProcessingComputer Hardware/ SoftwareConsultantsContract LaborCopier Paper/ Fine PaperCopiers & Print ServicesEnergy BrokeringExpress Air - DomesticExpress Mail - International

Facilities ServicesFaxesFlight Operations ServicesFood and Vending ServicesFormsFreight Payment - 3rd PartyFuels & OilsFurnitureGeneral ConstructionGraphic SuppliesHazardous Waste & Environmental

Household Goods Transportation

International Freight Forwarding & Brokerage ServicesJanitorial SuppliesLease/ Purchase VehiclesLithographyManufacturing/ Laboratory SuppliesOffice and Computer SuppliesPackaging SuppliesProfessional Services-Health & WelfarePurchasing CardReprographicsSecuritySoftware DevelopmentSolid Waste Management and RecyclingSupplies & Services/ Video ServicesTelecommunications - Cell PhonesTelecommunications - PagersTelecommunications Long Distance VoiceTest EquipmentTest Equipment CalibrationTest Equipment RentalTransportation Logistics

Direct Commodity Agreements

Indirect Commodity Agreements

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Work with Small Business advocate to clarify Work with Small Business advocate to clarify requirements.requirements.

SmallSmallBusiness Business AdvocateAdvocate

Are you in the position to bid for prime contracts with Are you in the position to bid for prime contracts with the right Teaming Agreement?the right Teaming Agreement?

TeamingTeamingAgreementsAgreements

Joint VenturesJoint Ventures

Diversity Diversity SupplierSupplier

ss

DetermineDetermineStrategyStrategy

Determine significant supply strategies Determine significant supply strategies (agreements/programs).(agreements/programs).

Area ofArea ofExpertiseExpertise

Identify/highlight your areas of expertise and map to Identify/highlight your areas of expertise and map to target companytarget company

IndustryIndustryLeader/Leader/

CompetitionCompetition

Research industry competition. Am I a leader in this Research industry competition. Am I a leader in this field? Who held the last contract? field? Who held the last contract?

RiskRiskAssessmentAssessment

Can you afford (time, money, technology) to pursue Can you afford (time, money, technology) to pursue this business?this business?

NationalNationalRegionalRegionalSupportSupport

Utilize existing or develop strategic alliances/national Utilize existing or develop strategic alliances/national and regional support requirements.and regional support requirements.

Supplier Diversity Planning Process

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RTN Supplier Diversity Websitehttp://www.Raytheon.com/connections/supplier/diversity

Raytheon Supplier Diversity - Connect With Us

The On-line

Supplier

Registration tool

will aid in

matching

suppliers to

opportunity.