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PROSPERITY

2015 Supply Purchases Scorecard

Purchased

$4.05 billion

in supplies and services

Supported

6,717

suppliers

Increased spend with
minority- and women-owned
businesses by

7%

Generating supply-chain value

Norfolk Southern is a critical link in the U.S. commercial freight supply chain. Customers that rely on NS to safely and efficiently move their goods to market are a critical part of the railroad’s value chain. Important to NS’ business success as well are thousands of companies that supply diesel fuel, equipment, materials, and a multitude of services the railroad needs for daily operations as a transportation services company.

In 2015, NS distributed $4.05 billion into the economy to purchase goods and services from 6,717 suppliers. Five suppliers accounted for nearly 20 percent of the total spend. Two supplied NS with diesel fuel, while the other three provided things such as locomotives and locomotive parts, freight cars and car parts, roadway track equipment, and engineering services.

NS purchased $217 million in goods from minority- and women-owned business suppliers in 2015, a 7 percent increase over the $203 million spent in 2014. The total includes $157 million for women-owned businesses, $13 million for small businesses, $8.7 million for black-owned businesses, nearly $7 million for Asian-owned businesses, nearly $6 million for Hispanic-owned businesses, and $19 million for Labor Surplus Area businesses. LSA businesses are in localities designated by the U.S. Department of Labor as areas of high unemployment, where the goal of the federal program is to strengthen the nation’s economy by providing these communities with economic opportunities.

Green Supply Chain Leader

Inbound Logistics magazine named Norfolk Southern to its 2015 75 Green Supply Chain Partners list – companies that “demonstrate green best practices in their supply chain, logistics, and transportation operations.” Editors based the selection on measurable green results, sustainability innovation, continuous improvement, and industry recognition. The magazine cited NS’ Trees and Trains carbon-mitigation program and its goal to reduce greenhouse gas emissions in business operations.