supplier diversity at lilly

Supplier Diversity Development

Supplier Diversity at Lilly


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



What is 2nd Tier?

• Any supplier, regardless of type or size, that is contracted through a 1st tier supplier to Lilly.



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


2nd Tier Process at Lilly



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



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



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



Direct 2Direct 2ndnd Tier TierSubcontractor'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

$ -

$ -

$ -

$ -



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!



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



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

supplier diversity at lilly

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