Welcome to the SPHS Webinar Series

"Ensuring Fair Play in the Global Health Supply Chains"

www.savinglivesustainably.org

August 23, 2017

Agenda

1. Welcome remarks

2. Introduction to speakers

3. Presentations

• UNDP: Introduction to the SPHS initiative

• UNFPA: Transition from a product based to a method based catalogue

• CEGESTI: The Promotion of the Participation of

Small and Medium Enterprises in Green Public

Procurement

• PSCI: Ensuring Supplier Diversity

4. Q&A

Speakers

Roberto MenaProcurement SpecialistUnited Nations Population Fund (UNFPA)

Steven MeszarosCorporate Senior Director Business Resiliency & Business DevelopmentPfizer

Sylvia Elena AguilarEnvironment and Development CoordinatorCEGESTI

Sustainable Procurement in the Health Sector

(SPHS)

Dr. Rosemary Kumwenda

SPHS Coordinator and Team Leader for Regional

HIV, Health and Development, UNDP Europe and

CIS

SPHS Webinar Series : Ensuring Fair Play in the Global

Health Supply Chains, August 23, 2017

INTRODUCTION

Who We AreEstablished in 2012, SPHS brings

together seven United Nations agencies

and three global health financing

institutions, committed to introducing

sustainable procurement in the global

health sector and beyond.

Our annual cumulative purchasing

power is around US$ 5 billion, which

represents a sizable portion of the global

pharmaceutical and other health

products markets.

What We DoMULTI-

LEVEL

PERSPECTI

VECROSS-

CUTTING

INNOVATION

DRIVER

FOR

CHANGEINCLUSIVE

APPROACH

MARKET

INTELLIGEN

CEONLINE

ENGAGEME

NT

PLATFORMBUSINESS

TO

BUSINESS

Our UN procurers, suppliers and

manufactures work at global,

regional and national levels

We address sustainability from

different perspectives - public

health, the environment,

procurement.

We promote sustainable health

systems and inclusive green

economies

Our engagement with suppliers

and manufacturers is based on

systematic consultation, ongoing

dialogue and collaboration

We can draw on the expertise

and knowledge from our far-

reaching network

We maintain a repository of good

practice examples on sustainable

procurement and sustainable

manufacturing

We bring together a global

network of technical experts who

can support suppliers and

manufacturers

AchievementsGreen Procurement Index Health

roadmap

Guide on Health Procurement

and the Compliance with

International Environmental

Conventions on Chemicals

Carbon foot printing of UNDP

Global Fund grants

Health care waste assessments

and waste management toolkits

Engagement Strategy with

suppliers and manufacturers and

a Signed High-Level engagement

statement

Sustainable Health Procurement

Guidelines and Procurers training

Environmental Questionnaire for

suppliers and manufacturers

Partnerships with Health Care

without Harm, SIWI, Skoll

Foundation, UNF

www.savinglivesustainably.org

Transition from a product based to a method based catalogue

Roberto Mena

Procurement Specialist

United Nations Population Fund (UNFPA)

PRESENTATION #1

THIS IS UNFPA

Ensuring Fair-Play in the Reproductive Health Supply Chain

Procurement Services Branch

Delivering supplies for reproductive health results

UNFPA Procurement Services Branch has been providingreproductive health supplies for the developing world forover 40 years. Our expertise extends to managing a globalsupply chain that responds to the needs of our partners indevelopment.

Today, UNFPA is one of the largest public sector procurersof Reproductive Health (RH) commodities.

United Nations Population

Fund

Delivering a world whereevery pregnancy is wanted,every childbirth is safe andevery young person’s potential is fulfilled

We are the lead United Nations agency that expands the possibilities for women and young people to lead healthy sexual and reproductive lives. We are on the ground improving the lives of millions of women and young people in more than 150 countries and in humanitarian crises.

In 2016, UNFPA delivered

RH supplies

to

117 countries

providing over

35 million CYPcouple years of protection

Public procurement principlesOpen international bidding process

Competitive, pre-negotiated prices

Procurement, contracting and QA expertise

Cost savingsStringent UNFPA / WHO QA practices

Pre-qualified suppliers and products

Pre-shipment inspection, sampling and testing

Trusted Partner in RH Supplies

Comprehensive audit rating = Satisfactory

UNFPA Procurement Services

Product & pricing information online

Generic or innovator brands

Online planning tools and simplified ordering process

Reduced lead time in-stock products

quality value choice

UNFPA

Public procurement principlesOpen international bidding process

Prequalification

Male condoms Female condoms

IUDsRH Medicines

Technical evaluation

Medical Devices Emergency RH KitsFistula Repair Kits

Capacity building

Quality control laboratoriesNational regulatory

authoritiesManufacturers

WHO, UNFPA, and ISO standards

UNFPA’s Quality Assurance Policy

Objectives

• Ensure high quality commodities

• Access generic medicines and low cost devices that meet international standards and quality requirements in line with WHO specifications and guidelines

• Harmonize quality standards through pooled procurement

• Ensure safety and efficacy throughout shelf life

Concerns addressed by QA practice

Substandard/Spurious/Falsely-labeled/Falsified/Counterfeit Medicines

Market ShapingActivities

Uptake of Generics

Amongst other activities

What have we done?

Switch of the offering on UNFPA’s Online Catalogue• Transition from a product based to a method based catalogue

Development of Tools to assist the transition • Infographics – frequently asked questions on generics• Price comparator chart • Interactive Price comparator• Procurement planning tool – gives prominence to generic

names• Hormonal contraceptive fact sheet

What have we done?

Demand generation• Webinars in collaboration with partners – RHSC, WHOPQT,

Government of Zimbabwe, UNFPA regional offices• Focus on Pharmacoeconomics of generics

Innovator or Generic?What you can buy for 1000,000 USD*

Combined Oral Contraceptives

Product Quantity Unit of Measure

Innovator Brand 1 370,370 Cycle

Innovator Brand 2 144,927 Cycle

Generic Brand 1 454,545 Cycle

Generic Brand 2 416,666 Cycle

Generic Brand 3 416,666 Cycle

Potential savings equivalent to more than 300,000 additional cycles

*Does not included freight charges or 5% handling feeMarch 2017 catalogue prices

Results of Pharmacoeconomics of generics

Generic Contraceptives delivered to

UNFPA Procurement – Increasing Supplier base

www.unfpaprocurement.org

The Promotion of the Participation of Small and

Medium Enterprises in Green Public Procurement

Sylvia Elena Aguilar

Environment and Development Coordinator

CEGESTI

PRESENTATION #2

About CEGESTI

We are a non-profit organization founded in 1990, with the mission of contributing to sustainable development in Latin America with special emphasis on: Environment and Development; Responsible Business and Impact on Social. Responsibility.

•Training

•Support for the development of a

policy and action plan (Min.of

Environment)

•Training

• Support for the

development on a

handbook (Min. of

Environment)

• Support for the

development of a

national instructive on

SPP (Min. of Finance)

•Training

• Training

•Training

• Support for the development of a

policy and action plan

(PanamáCompra-National

Procurement Authority)•Training

• Support for the development of a guideline

on labour conditions on public procurement

(Min. of Finance and Min. of Labour)

• Research on the state of implementation of

SPP (Min. of Finance)

• Spaces of dialogue (Fair Trade, Bar

Association, among others)

• Techinical assistance to several institutions

Sustainable Public Procurement

(2007-to date)

•International researches done on

the topic, financed by OAS, UN

Environment and Fundación

Mapfre

Available at http://www.scpclearinghouse.org/knowledge-hub

Importanceand characteristicsof SMEs

•Besides their contribution to the GDP, they are important in generating employment (e.g., in Latin America, SMEs account for around 99% of businesses and employ around 67% of employees).

•There is no official data on the environmental performance of SMEs, but is known their difficulty to comply with standards and it is recognized that their environmental impact is significant.

Public sector´ssupply chain

•The participation of SMEs in public procurement may be direct, either because the SME is selling the product that another enterprise manufactured, or because the SME is the manufacturer selling, or indirect when they are the manufacturer or provider of materials, but another enterprise sells directly to the Public Sector.

•Also, the SME could be part of a bid as a subcontractor (for example, in the case of constructions), or be the contractor themselves. Of course, the supply chain could be as complex as many enterprises might be on multiple tiers below the bidder.

Taken from the SPHS Annual Report 2016

SMEs in PublicProcurement

When trying to access public procurement, SMEs face difficulties such as:

•The size of contracts

•Lack of access to relevant (quality) information

•Disproportionate qualification levels and financial requirements

•Delayed payments

•Emphasis on price, rather than on value for money

•Red tape

•Perceive risk, from the buyers´ point of view, as SMEs might not have the track record

•Among others

SMEs in PublicProcurement

There are different policies that can encourage the participation of SMEs in public procurement:

Competi-tiveness of SMEs in GPP

Even if a country successfully develops the capacity to implement GPP, SMEs need support to take part of this market.

There is a perceived risk of GPP creating unfair competitive advantage for few (often large, international) firms able to comply with GPP standards.

Opinion on the main barriers that SMEs face in GPP (n=39. Respondents could choose more than one response)

SURVEY (39 PARTICIPANTS, 25 COUNTRIES)

Promoting SMEs in GPP

SMEs able to competitively participate in

public procurement

SMEs able tooffer the green

products requiredin public

procurement

SMEs in GPP

There are many

policies around the

world on promoting

SMEs on public

procurement

Many countries have programmes / service

suppliers to support SMEs improve their

environmental performance and upgrade

their technology, as well as green finance.

Not necessarily linked to GPP

priorities

Recommendationsfor countries

Based on UNEP´s SPP Approach Steps

(UNEP, 2012)

Recommendations for countries: Prioritize products

As part of the Market Readiness Analysis, consider:

• Are there policies in place to promote the participation of SMEs in public procurement? How are the barriers to SMEs in public procurement been addressed?

• What are the types of SMEs on that market? (commercial ventures, microenterprises, SMEs, Dynamic SMEs)

• What is the maturity level of those SMEs regarding their capacity to offer a green bid?

Recommendations for countries: Prioritize products

• What are relevant certification or verification instruments available in the country? What are the costs involved for companies to comply?

• Are there financial instruments/subsidies available to SMEs to make necessary investments?

• What is the costs differential of green products? Is life cycle costing or total cost of ownership used in public procurement?

• Are there national programmes (or other instruments) to promote environmental improvements on those sectors, either through training or technical assistance?

Recommendations for countries: Define specificstrategies

• Acknowledge the heterogeneity of SMEs (from micro to quite dynamic SMES able to exploit market opportunities).

• Coordinate with the SME´s capacity building institutions capacity building improve environmental performance of products/processes aimed at the particular products prioritized for GPP.

Recommendations for countries: Define specificstrategies

• Coordinate with the finance sector the inclusion of investments to modify products, certifications, or others, in their white list of green investments for SMEs.

• Make sure SMEs take part into the definition of sustainability criteria and define clear instructions to buyers on how to gradually include the criteria.

• As each user may have different functional and performance needs to fulfill, it´s not possible to define criteria that is bounding. However, it is important to provide guidance to avoid a multitude of different sustainability criteria for the same product.

• When defining the monitoring system, define metrics to measure the participation of SMEs in SPP.

Challenges in thehealth sector

• Not to define stringent environmental criteria, out of the reach of SMEs to comply, financially and/or technically (including certifications with no local providers). SMEs rarely take part in GPP criteria development, which tends then to request readily available green products, rather than engage in partnerships with SMEs to foster innovation.

• Provide enough time to prepare, as SMEs do not have the resources to allocate personnel to environmental management and/ or research to green their products.

•Avoid the “Eco-label dilemma”: globally, there are over 400 ecolabels in operation, and for sectors that are frequent areas of public spending there are around 40 labels, all indicating varying levels of performance.

Challenges in thehealth sector

• SMEs´ reluctance to face the costs of introducing the necessary changes, particularly when the buyers´preference is lower cost, instead of the most economically advantageous tender (MEAT) criterion.

• Not compliance to quality standards. There have been complaints on the quality of some green products and it is reported as a barrier hampering the market uptake of green products.

Challenges in thehealth sector

• Lack of capacity building programmes (training and / or technical assistance) to support SMEs adapt their production processes and/or their products.

• In countries with weak enforcement of environmental regulations, even basic criteria could render a significant portion of SMEs unable to bid.

Challenges in thehealth sector

• The coordination with the relevant local institutions

Thanks!

saguilar@cegesti.org

https://www.linkedin.com/in/sylviaaguilar

http://www.cegesti.org/

http://www.comprasresponsables.org/

Ensuring Supplier Diversity

Steven Meszaros

Corporate Senior Director Business Resiliency & Business Development

Pfizer

PRESENTATION #3

PSCIPHARMACEUTICAL SUPPLY CHAIN INITIATIVE

The Pharmaceutical Supply Chain

Initiative (PSCI):

An Introduction

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

PSCI: The Purpose

47P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

Our purpose is to bring

together the pharmaceutical industry

to formalize, implement, and champion

responsible supply chain practices.

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Members working together to drive change

24 member companies

already share the PSCI

vision for responsible

supply chain

management and are

committed to continuous

improvement….

48P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Addressing the issues

GL

OB

AL

IS

SU

ES

ETHICSHEALTH & SAFETY ENVIRONMENT LABOR

RO

LE

OF

BU

SIN

ES

S Be trusted by our patients and stakeholders

Deliver reliability across our supply chain

Source from companies who are responsible

RO

LE

OF

PS

CI

BRING PSCI

PRINCIPLES TO LIFE

THROUGH

STANDARDISED

PROCESSES

LEVERAGE

COLLECTIVE VOICE

BUILD CAPABILITIES

& DRIVE

CONTINUOUS

IMPROVEMENT

49P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

What are the PSCI Principles?

50

E T H ICS H EA LTH & S A FETY E N V IRONME NT M A NAGEME NT S YSTEMSL A B OR

PSCI created the Industry Principles for Responsible Supply Chain Management

These five Principles outline our expectations for sustainable supply chains in our

industry and provide descriptions of our expectations for pharmaceutical supply chain

partners:

Our Implementation Guidance provides:

Clarity about the Principles in each of the five areas

A framework for improvement

Examples of how to meet the PSCI expectations

www.pscinitat ive.org

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

The PSCI Principles

51

E T H ICS H EA LTH & S A FETY E N V IRONME NT M A NAGEME NT S YSTEMSL A B OR

Business

integrity & fair

competition

Identification of

concerns

Animal welfare

Privacy

Freely chosen

employment

No child labor

Legal treatment

of young

workers

Non-

discrimination

Fair treatment

Legal wages,

benefits &

working hours

Freedom of

association

Worker

protection

Safe work

conditions

Process safety

Proper control

of hazardous

substances

Emergency

preparedness &

response

Communication

of hazard

information

Legal

environmental

authorizations

Management of

waste &

emissions

Spills & releases

prevention

Water

conservation

Manage

pharmaceutical

waste-water

discharge

Commitment &

accountability

Legal &

customer

requirements

Risk

management

Documentation

Training &

competency

Continual

improvement

www.pscinitat ive.org

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

The challenge: The role of PSCI

52

PSCI

Collective

Influence

Continuous

ImprovementCollaboration

PSCI

Standardised

Processes

PSCI

Principles

PSCI

Capability

Building

Supply

Chain

PSCI membership

provides a collaborative

platform to drive positive

change.

The PSCI Principles

provide the foundations for

driving continuous

improvement across the

supply chain.

Our supply chains must

be reliable and

responsible in order to

respond effectively to our

patients’ needs and to

retain trust.

Standardised processes

bring structure and

consistency, reducing risk.

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Support improvement

53

Help build supplier capability to implement the PSCI Principles and practices.

Regular supplier capacity building

activities including:

Webinars

On current topics impacting our industry.

Supplier Conferences

To support technical capacity building.

Knowledge Sharing

Share best practice documents through a

resource library on the PSCI website.PSCI Supplier & Auditor Training Event, India (2017)

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Improve efficiency

P S C I O v e r v i e w P r e s e n t a t i o n | J u n e 2 0 1 7 54

PSCI has

standardised

tools to assist

the assessment

of the supply

chain against

PSCI principles,

including the

PSCI Self-

Assessment

Questionnaire

& Audit

Protocol

Access a platform of shared audits and help reduce auditing duplication.

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Move the industry

55

Influence standard practices across the supply chain.

Created the PiE learning modules, making them available

on the PSCI website

Setting the industry standard for sustainability data collection -

aligning on a common core set of questions and platform

Modern slavery industry position paper

completed

Supported the Green Chemistry practices across

the industry

Green Chemistry

Conference, 2017

Achievements include:

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

PSCI Strategy 2015 - 2017

56

PSCI Vision and Mission

3Improving

engagement across

the industry & with

key stakeholders

2Enabling

suppliers to

continuously

improve

1 Driving leadership

practices at

member

companies

Strategic PillarsHow we will influence

Governing with Transparency and Managing with AccountabilityGovernanceHow we will manage

Fair and Safe Work Places

Responsible Business Practices

Environmental Sustainability and Efficiency of Resources

Priority IssuesWhat we will influence

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCISupplier diversity efforts closely link to SDG#8

57

8.3 Promote development-oriented policies

that support productive activities, decent job

creation, entrepreneurship, creativity and

innovation, and encourage the formalization

and growth of micro-, small- and medium-

sized enterprises, including through access

to financial services

By 2030, achieve full and productive

employment and decent work for all women

and men, including for young people and

persons with disabilities, and equal pay for

work of equal value

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCIBuilding TrustTrust is earned every day. Trust can be lost any day.

Suppliers trust us

to be able to

compete for our

business fairly and

equally.

Our Neighbors trust

us to protect the

local and global

environment.

Colleagues trust

that leadership

cares for their

safety.

Patients trust us to

discover and deliver

innovative

treatments.

Society trusts that

are medicines are

fairly priced.

Pharmacists trust

that they will never

run short of a life

saving medicine.

Diversity Programs are a key opportunity to expand the PSCI’s aspiration for becoming

TRUSTED IN PHARMA INDUSTRY

Patients trust that

the next dose is as

effective as the last

dose.

There are many examples of great diversity programs run by our

member companies, please see the back up deck for a sampling of a

few of those programs.

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7 59

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7 60

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7 61

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7 62

Supplier Diversity – Update

Global Sustainable ProcurementRisk, Sustainability, Performance and Innovation (RSPI)

Unlocking Value for Growth | 未来への価値を創造する

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Creates overall value within our strategic sourcing

process and provides:

Strategic Alignment - Contributes to the mission and vision of

Takeda and is a reflection of our Core Values and a pillar of

our Vision 2020 program

Value – Promotes competition among our suppliers and helps

Takeda optimize the price, quality, and availability of the

products and services it buys, and aids in achieving financial

cost saving targets for stakeholders and procurement

Innovation – Gives Takeda access to new and innovative

products and services

Impact – Positively contributes to our competitive advantage

and corporate sustainability goals and conveys economic and

social benefits to the communities in which we work and live

64

Why Supplier Diversity at Takeda?

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Diversity is a critical element in building an effective

workforce and also efficient supply chain.

Strategically selecting diverse suppliers helps add value and create

social benefits that support the demographics of our workforce and

customers

It is not:

A quota system, a charity or a “set-aside”

It is:

About utilizing new, under-utilized suppliers – through a proactive

program that ensures an inclusive supply chain, thereby ensuring our

supply chain expands beyond what’s traditional to include small,

woman-owned, minority-owned, LGBT, or Disabled businesses etc

65

Supplier Diversity – A Critical Element

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Takeda’s first Supplier Diversity Day at Takeda

November 8, 2016

– ~90 Attendees (57 suppliers, 34 business & procurement

– 8-10 Suppliers signed up with CDA’s or under discussion

Recognition:

Takeda awarded 2016 Corporation of the Year by Diversity Alliance for Science, Advocacy recognition by DiversityPlus Magazine as one of 2016 Top 25 Women Impacting Diversity

On-boarded 10 new diverse suppliers as result of advocacy (approximately 1000 small and diverse suppliers are utilized globally within Takeda)

Activated Takeda’s small/diverse supplier mentoring program

Supplier Diversity a key component of our internal Procurement Policy and external reporting

Favorable payment terms provided to those small companies, compared to large business payment terms

Takeda Example: FY16 Key Accomplishments

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Supplier diversity – member approaches

Takeda

• Our supplier diversity program is a reflection of our Values—Diversity, Teamwork, Commitment,

Transparency, Passion, and Innovation. These values describe who we are and the way we

conduct ourselves in our company, our community and in our business environment.

• As part of Takeda’s sustainable procurement program, the supplier diversity program allows us to

invest in the communities in which we live, work and serve by purchasing goods and services

from a diverse range of businesses. We see it as an opportunity to make a positive impact and

a way to contribute to the economic strength of those communities. This includes fostering

and maintaining relationships with small, minority or women-owned businesses. In addition,

partnering with a diverse range of suppliers provides overall value within our procurement

process and contributes to our mission by giving Takeda access to new and innovative

products and services while optimizing price, quality and availability of products and services,

and is in keeping with our overall corporate commitment to responsibility and sustainability.

67P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Supplier diversity – member approaches

AstraZeneca

• Over the past few years, there has been a shift in our supply base away from larger global suppliers towards smaller, more innovative ones. Driven by our business strategy to become more science-led and innovative, we often find that small companies can be more flexible, responsive and creative, so we see a real benefit in awarding contracts to a diverse range of suppliers. All our suppliers must meet the same global quality and ethical standards in order to win work with AstraZeneca, so our supplier diversity programme helps small businesses understand our requirements and build their capabilities.

• In the US, we partner with organisations that represent small or minority-owned businesses to provide targeted training, mentoring and coaching to their members and, where appropriate, introduce individuals to people in our Procurement team. We also encourage small businesses to work together to strengthen their capabilities and meet the requirements of contracts that would otherwise be too big for them to take on alone. In other regions of the world we adopt a targeted approach to supplier diversity taking into account the local environment as well as our own business needs.

68P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Supplier diversity – member approaches

J&J

• We recognize the importance of having a diverse supplier base that reflects our patients and customers

around the world. By working with small and diverse suppliers, we tap into new ideas that add value to

our businesses and provide innovative solutions to our marketing, manufacturing and research &

development efforts. Our Supplier Diversity Program helps us attract qualified small and diverse suppliers to

support our business needs.

• Our commitment to Supplier Diversity led us to establish a formal Office of Supplier Diversity in 1998 in

addition to our ongoing active outreach program. The Office is integrated into our operating companies

through Supplier Diversity leadership representatives, and also includes additional representation for our

corporate and category leadership teams.

69P S C I O v e r v i e w P r e s e n t a t i o n | A u g u s t 2 0 1 7

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Customer

insight

Raise profile

Member

&

supplier

benefits

Benefits for members and suppliers

70P S C I O v e r v i e w P r e s e n t a t i o n | J u n e 2 0 1 7

Common

standards

Customer

collaboration

Industry

recognition

Best

practice

sharing

Reduce

duplication

of effort

PHARMACEUTICAL

SUPPLY CHAIN

INITIATIVE

PSCI

Membership eligibility & types

P S C I O v e r v i e w P r e s e n t a t i o n | J u n e 2 0 1 7 71

There are two types of PSCI membership available:

All companies who manufacture medical products OR

provide materials to the pharmaceutical / biotech /

medical devices industries are eligible to become PSCI

members.

Full Membership

Designed for companies that wish to

actively participate and demonstrate

leadership.

Associate Membership

Allows companies to take a less active

role; i.e. those just starting their

responsible sourcing programmes or

those who do not have the time to

participate fully.

Q & A

Upcoming SPHS webinar

SAVE THE DATE – OCTOBER 17

Human Rights and Gender Equality in

the Global Health Supply Chains