Supplier Diversity Development Supplier Diversity at Lilly.
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Transcript of Supplier Diversity Development Supplier Diversity at Lilly.
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Why is Supplier Diversity important for Lilly?
• Compliance – Lilly is a federal government contractor– We have small business spend goals to meet
• Competitive Advantage/Business Imperative– Diversity fosters creativity. Creativity drives innovation. – Innovation leads to business success– Individual patient outcomes– We need the BEST!
• Key piece of the puzzle to Lilly’s corporate diversity strategy– Enables us to effectively market our products to a diverse market place
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
What is 2nd Tier?
• Any supplier, regardless of type or size, that is contracted through a 1st tier supplier to Lilly.
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Why partner with Lilly on 2nd Tier?
• We cannot do it alone – We need the unique opportunities that YOUR company can provide to qualified small/diverse businesses
• Left un-addressed, these challenges will diminish competitive access to opportunities for qualified small/diverse businesses
• We view YOU as our partner willing to share the responsibility to ensure growth in the market place
• Your partnership will strengthen our supply chain management process and increase
both our competitive advantage
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Objectives
Address frequently raised concerns on 2nd Tier
Identify the two methods of 2nd tier reporting
Diverse categories we track for 2nd Tier
2nd Tier process
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
2nd Tier – Top 4 concerns from 1st Tier Supplier
Do not understand the importance of 2nd Tier to Lilly
Do not understand Lilly’s 2nd Tier process
Do not have the ability to track 2nd Tier spend
Do not know who the potential 2nd Tier diverse suppliers are in their space
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
2nd Tier Reporting – 2 Methods
Direct• List the spend $$ and names of small and diverse suppliers that
you subcontract with on Lilly business
Indirect • Determine what percent the Lilly sales revenue is to your
overall sales and then multiply that percentage by your diversity spend amount
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Direct 2Direct 2ndnd Tier TierSubcontractor's Name Q1 Q2 Q3 Q4
MBE (Names of subcontractors used for Lilly Projects)
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TOTAL MBE SPEND
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TOTAL MBE YTD
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Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Indirect 2Indirect 2ndnd Tier Tier Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Your Company's Total Sales Revenue 0
Sales Revenue from Lilly Business 0
Revenue from Lilly Business as a Percentage of Your Company's Total Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Amount Spent with Diverse Suppliers by Your Company by Category*
Minority Owned 0
Woman-Owned Business Enterprise 0
Small Business 0
Small Disadvantaged Business 0
Woman-owned Small Business Enterprise 0
HUBZone Business 0
Veteran-owned Small Business Enterprise 0
Service Disabled Veteran-Owned Small Business 0
Total 0 0 0 0 0
Indirect Spend Attributable to Lilly Business by Category
Minority Owned #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Woman-Owned Business Enterprise #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
Definitions for Diverse Categories
SBE Small
SDB Small Disadvantaged Business
WOSB Women-Owned Small Business
VOSB Veteran-Owned Business
SD-VOSB Service Disabled Veteran-Owned Small Business
HUB HUBZone Business
MBE Minority-Owned Business
WBE Woman-Owned Business
Supplier Diversity Development
Company ConfidentialCopyright © 2009 Eli Lilly and Company
2nd Tier Process….
E-mail notification from Lilly to 1st Tier suppliers requesting 2nd Tier spend
• Send last week of the quarter
• Lilly provides 2nd Tier Templates
• Submit 2nd Tier spend data by 24th of the following month
Lilly compiles the 2nd Tier data
Tracks 2nd Tier spend by supplier and report internally