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Supplier Diversity at Lilly

Supplier Diversity at Lilly. 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.

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Supplier Diversity at Lilly

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  1. Supplier Diversity at Lilly

  2. 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

  3. What is 2nd Tier? • Any supplier, regardless of type or size, that is contracted through a 1st tier supplier to Lilly.

  4. 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

  5. 2nd Tier Process at Lilly

  6. 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

  7. 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

  8. 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

  9. Direct 2nd Tier

  10. Indirect 2nd Tier

  11. Definitions for Diverse Categories

  12. 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

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