SUPPLY CHAIN MANAGEMENT

Supply Chain Social Responsibility. We’ve jointly developed and adopted the Electronic Industry Code of Conduct, which is related to socially responsible supply chain practices. The Code outlines standards to ensure that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity and that manufacturing processes are environmentally responsible.

Fundamental to adopting the Code is the understanding that a business, in all its activities, must operate in full compliance with the laws, rules and regulations of the countries in which it operates. The Code encourages participants to go beyond legal compliance, drawing upon internationally recognized standards, in order to advance social and environmental responsibility.

Supplier Diversity. We have an active supplier diversity program and work to develop WMDVBE suppliers across a range of purchased commodities. We’re a sponsor of several local chapters of key diversity organizations, such as the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise Council (WBEC).

We have taken these steps to synchronize diversity supplier activities with our corporate social responsibility effort, and the positive returns are evident in our relations with the supply base and in developing customers in various industries. This mission underscores our long-standing commitment to being a leader in supplier diversity and to be a model corporate citizen in the communities we serve.

C-TPAT. Sanmina is committed to proactively ensuring our supply chain is safe and secure to support the interests of National Security, our organization and our customers through infrastructure, policies, procedures, training and operational partnerships. Sanmina received C-TPAT (Customs Trade Partnership Against Terrorism) certification in September 2004 from U.S. Customs and Border Protection (CBP). C-TPAT is a joint government-business initiative designed to strengthen supply chain and border security and to ensure the continued free flow of international trade.

SMI. The Sanmina Supply Managed Inventory (SMI) Program is focused on high-spend items. We’ve deployed the SMI system capability for Oracle®, improving business communications and operational efficiency around the world.

EDI. Sanmina employs Electronic Data Interchange (EDI) transactions to increase the data accuracy in communications with suppliers to improve forecasts and facilitate sourcing execution. Currently, our EDI order/forecast capabilities are assisting more than 100 suppliers around the world.

Sanmina Codes of Conduct and Policies. Sanmina suppliers make significant contributions to our success. The supply chain management organization strives to create an environment where our suppliers have an incentive to work with the Company and to be confident that they will be treated lawfully, fairly and in an ethical manner. To this end, the organization operates under related key Corporate guidelines and policies.