Supplier Diversity Development
Supplier Diversity at Lilly
Supplier Diversity Development
Why is Supplier Diversity important for Lilly?
•
Compliance – Lilly is a federal government contractor
–
•
Competitive Advantage/Business Imperative
–
–
–
–
•
We have small business spend goals to meet
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
What is 2nd Tier?
• Any supplier, regardless of type or size, that is
contracted through a 1st tier supplier to Lilly.
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
2nd Tier Process at Lilly
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
Direct 2nd Tier
Subcontractor's Name
Q1
Q2
Q3
Q4
$
$
$
$
MBE (Names of subcontractors used for Lilly Projects)
$
$
$
$
-
$
-
$
-
-
-
$
$
$
$
$
-
$
-
-
(Insert additional lines as necessary)
$
TOTAL MBE SPEND
$
-
$
TOTAL MBE YTD
$
Company Confidential
Copyright © 2009 Eli Lilly and Company
$
$
-
$
-
$
-
-
Supplier Diversity Development
Indirect 2nd 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
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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
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#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Woman-Owned Business Enterprise
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#DIV/0!
#DIV/0!
#DIV/0!
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company
Supplier Diversity Development
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
Company Confidential
Copyright © 2009 Eli Lilly and Company