Pinnacle West Capital Corporation
PNW Stock Mar 19, 2010 at 16:02 ET 37.77  -0.17   
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About Us: Supplier Diversity & Development

Commitment

A Message from Our Vice President
Barbara M.Gomez, Vice President of APS Supply Chain Management

Although 2009 was certainly a challenging year, APS faced these challenges head-on and used them as catalysts to drive innovation and renewal in every business unit in the company.  Supply Chain was no exception.  We implemented a new business intelligence tool that allows for greater market analysis and transparency in the sourcing process.   The new tool is being used to drive a Strategic Sourcing Initiative that is examining several spend categories.  Overall spend has dropped by as much as one-third in many areas because of current economic conditions.  In spite of these circumstances, we accomplished many great things.  APS exceeded the 2009 Minimum Target for spend with diverse businesses which we feel is a remarkable accomplishment in light of the current economic conditions.

The Strategic Sourcing Initiative is a process that is long-term in nature and continuously improves, openly challenges and re-evaluates our purchasing activities in order to ensure the company gets the greatest value for the dollars spent.  As we go through this process, we are finding real opportunities to save money and provide value to our customers.  Supplier Diversity is involved in each of the strategic sourcing core teams representing the interests of the diverse business community by ensuring that certified and qualified diverse suppliers have the maximum opportunity to compete.

Supply Chain is implementing a transformational initiative that involves centralization of the supply chain function.  Supply Chain will play a more strategic role in business decisions.  We will partner with the business units to plan for their short- and long-term requirements for goods and services.  As a result, Supplier Diversity will be much more involved in the initial planning phase.  This change will continue to guarantee that diverse businesses are provided with the maximum opportunity to participate in the procurement process.

Reaching out to find and develop diverse suppliers has become a cornerstone of our corporate strategy.  APS recognizes the bottom-line economic significance of developing and utilizing this business sector, the value of a diverse business environment and the positive impact it has on our communities.

We remain committed to proactively promote opportunities for qualified minority and women-owned businesses and take a progressive approach to maintaining and growing our effect on these business sectors.

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