Are you a supplier to pharmaceutical and medical device companies? If so, you should be taking a hard look at your own supplier diversity initiatives. Supplier diversity programs are becoming extremely prevalent in the pharmaceutical and medical device industries. Partnering with a certified women-owned business, or other certified diverse vendors, carries with it many tremendous benefits for suppliers of pharma and med device companies and the broader community as a whole, including the following:
> Enhancing innovation through the introduction of fresh ideas and perspectives
> Providing potential tax incentives
> Creating additional competition among your vendors, in terms of both price and service
> Demonstrating alignment of values with your customer base and your commitment to diversity
> Increasing your profitability, as evidenced by recent studies conducted by the Hackett Group
> Promoting economic growth in all communities
Read more about the benefits of partnering with a certified minority owned business
Our industry is filled with top-notch companies (your customers!) that demonstrate a strong commitment to supplier diversity, such as Johnson & Johnson, Pfizer, and Merck. Just look at the websites of these and so many other companies and you will see the pride they take in their supplier diversity initiatives…you’ll see highlights of their various diversity-related accomplishments and spending details which clearly demonstrate the importance of supplier diversity and the incremental value and competitive advantages that they realize from such partnerships.
In reviewing websites and supplier handbooks, as well as talking with industry executives, it’s also very clear that companies that prioritize supplier diversity expect the same from their suppliers. If your customers are committed to diversity with their supplier selection process, they want to see that you have the same commitment in the selection of your suppliers. After all, customers want to work with suppliers who share the same values as they do.
In fact, many of your customers likely have second-tier, or Tier 2, sourcing programs where they track and report not only their own diversity spending levels but also their suppliers’ diversity spending levels. Consequently, your utilization of a diverse supplier benefits your customer…not a bad way for you to get some bonus points with your existing customers and attract new customers as well. In addition, if you or your customers are looking to maintain compliance with ISO9001 or ISO13485, you’ll note that such compliance entails documentation of your supplier selection process….demonstrating supplier diversity as part of this ISO documentation makes it that much more impressive.
Supplier diversity is not a fleeting phenomenon…rather, it’s undoubtedly here for the long run. Engaging with a certified women-owned business, such as PRP, is a great way to demonstrate to your customers your commitment to diversity initiatives. If you have any doubt about the priorities of your customers, all you need to do is talk to them and log onto their websites, where you’ll see statements such as these:
“We realize supplier diversity creates a competitive advantage for our company and positively impacts the global community.” – Merck
“We believe our collaboration with diverse suppliers helps us better understand and anticipate the needs of the customers we serve.” – Kenneth C. Frazier, Chairman, President and Chief Executive Officer at Merck
“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….We believe that when our supplier base reflects the diversity of the consumers and patients who use our products and services, we achieve our mission of helping people live longer, happier, healthier lives.” – Johnson & Johnson
“At Pfizer, we are committed to developing and sustaining relationships with a diverse set of partners, including minority-, women-, veteran- and LGBT-owned suppliers to support our business.” – Ian Read, CEO at Pfizer
“Allergan recognizes diversity in our supply base as a critical component to our success. Diversity among our suppliers fosters creativity and innovation, which will give Allergan a competitive advantage in the market place. In addition to supporting our strategic business initiatives, Supplier Diversity also helps to strengthen the local community and demonstrates our desire to be a good corporate citizen.” - Allergan
“A diverse supply chain strengthens our ability to carry out our mission and improve the communities that we live and work… Moreover, as our customers continue to request Tier II diversity reports, Zimmer Biomet will request supplier diversity spend data to fulfill the various diversity reporting obligations that occur throughout the fiscal year.” – Zimmer Biomet
“Mallinckrodt’s purchasing organization is committed to creating diverse, dynamic supplier relationships to help us continually deliver value to the healthcare market…. Mallinckrodt is committed to creating valuable, supply-based relationships with minority-owned, woman-owned, veteran- and service-disabled-veteran-owned, small/disadvantaged, and HUBZone businesses.” - Mallinckrodt
“Diversity is a core value that helps 3M strengthen our competitiveness and stay relevant. As we drive diversity and inclusion across our enterprise – including in our supply chain – we gain access to new ideas and fresh perspectives, and are better able to serve the needs of our customers and communities around the world. We value the unique contributions made by our diverse supplier base, and look forward to building even more partnerships with woman-owned businesses, minority-owned businesses and small businesses (including Small Disadvantaged, HUBZone, Woman, and Veteran/Service Disabled Veteran) into the future.” - Inge G. Thulin, 3M Chairman, President and CEO
“At Stryker, we believe that we have a responsibility to engage with businesses that reflect both the diversity of our employees and that of the communities in which we live and work. As part of this belief, we are committed to partnering with and expanding opportunities for diverse suppliers within our business. We understand that diverse suppliers add value through their innovative ideas, fresh perspectives, and dedication in responding to our needs. By identifying and promoting diverse suppliers, we are able to deliver world-class products and services that enable healthcare providers to better treat their patients, ultimately aiding those patients in leading more active and satisfying lives.” – Stryker
“Daiichi Sankyo is committed to using the products and services of diverse and qualified businesses, not only to meet business goals, but to expand our sources of innovation and quality.” – Daiichi Sankyo
These are just a few examples of what you’ll find. So if you partner with a certified women-owned business like PRP, don’t be shy about it…let your customers (and prospective customers) know about it. Make sure they know that you share their same values, and then everyone wins…your company, your customer, and the broader community.
