Merck has had a supplier diversity program in the United States for many years, managed by our Global Procurement Group. The program's objectives are to foster growth of all companies owned by ethnic minorities, women, veterans and Lesbian, Gay, Bisexual and Transgender (LGBT), regardless of size, with the goal of identifying and utilizing qualified diverse suppliers as providers of goods and services to meet Merck's business needs.
Qualified diverse suppliers are pursued from all segments of the business community. Merck's Supplier Diversity program has three major areas of focus: business development, supplier development and strategic outreach. Minority- women-, LGBT- and veteran-owned business entities must be at least 51 percent-owned, operated and controlled by minorities (Black, Hispanic, Asian and Native American), women, veterans or gays and lesbians who are U.S. citizens, and the business must be headquartered in the United States or Puerto Rico.
Merck hosts Supplier Diversity Forums to increase qualified, diverse suppliers understanding of Merck's business needs, to expose these suppliers to the Merck business professionals who are involved in supplier selection, and to increase Merck's knowledge about current and potential diverse suppliers. Merck's most recent forums were focused in the media space — global channel marketing, market research and agencies. More than 50 diverse businesses presented their capabilities and value proposition to over 100 internal Merck stakeholders.
Our supplier diversity program also seeks to support the development of qualified, diverse suppliers through a number of programs and external efforts. In addition to providing coaching and feedback on performance, in 2008, Merck launched Phase II of our Supplier Diversity Mentor/Champion Program. Through the program, we conduct supplier assessments and create joint development plans with qualified, diverse suppliers that focus on increasing supplier growth, competitiveness and sustainability. Through the program, Merck senior executive champion each mentored supplier and create targeted growth plans and development plans that include Merck-sponsored training and development. Suppliers in the following categories are currently enrolled in the program: Research, Information Technology, Construction, Professional Services, Marketing, Direct Materials, and Site Services.
We also participated in more than 30 external supplier conferences and networking events focused on minority-, women-, veteran- and LGBT-owned businesses, and are active in external organizations including the National Minority Supplier Development Council, the U.S. Pan Asian American Chamber of Commerce, Women Business Enterprise National Council and the National Gay and Lesbian Chamber of Commerce. In addition, we build into our contracts with non-minority suppliers our principles to encourage diversity in supplier development, growth and utilization. We believe that driving diverse supplier utilization through our supply chain will fuel the economy in the diverse business community and provide a multiplier effect for diverse business utilization.
In 2008, Merck expanded its supplier diversity program to the United Kingdom and Canada, where Merck is a charter member of the Minority Supplier Development U.K. and a national member of the Canadian Aboriginal Minority Supplier Council. Plans for further expansion to other countries are underway.
The content on this page was last modified on September 15, 2009.
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