Enterprise Supplier Diversity Overview. Copyright 2014, Cardinal Health, Inc. or one of its subsidiaries. All rights reserved.

Transcription

1 Overview

2 Customer Focused, Excellence Driven Strategic Focus To identify and integrate best in class diverse suppliers into the supply chain, delivering customer-required diverse supplier solutions, exceptional customer service and better than market growth to Cardinal Health. Benefit to our Customers Commitment to meet or exceed customer requirements of diverse supplier inclusion, building confidence & trust Alignment with customer and shareholder values Detailed reporting of Diverse Supplier inclusion Opportunity to remain informed of Supplier Diversity related activity via bi-monthly Customer Summit teleconferences

3 Program Scope Governmental-Public Sector (DOD, GSA & VA), State & local entities. Focus is on businesses that are classified as small Private Sector (GPOs, IDNs, Hospitals) SB - Small Business SDB - Small Disadvantaged Business SWOB - Small Woman Owned Business SDVOB Service Disabled Veteran HUB - HUBZone MBE - Minority Owned Business WBE Woman Owned Business VOB - Veteran-owned ANC/Indian Tribes Originally Public Sector Expanded Focus. Supplier Diversity Private Sector

4 CEO Statement of Commitment At Cardinal Health, we re dedicated to making healthcare more cost-effective, so our customers can focus on their patients. And our relationships with our suppliers are clearly at the heart of the work we do to improve efficiencies and enable cost-effectiveness. Cardinal Health proactively seeks sourcing relationships with all businesses including small businesses, minority-, women- and veteran-owned businesses, and HUBzone-based businesses. In fact, we currently source more than $1 billion each year from these diverse suppliers. In all of the geographic regions where we operate, Cardinal Health seeks suppliers who can provide quality products and services at competitive costs, who demonstrate a focus on operational excellence and share our passion for serving our customers. Under my leadership, I will ensure that Cardinal Health continues to include diverse suppliers as part of our bidding processes, grow our base of diverse suppliers and provide mentoring and developmental assistance to them to help promote sustainable business models. We believe that an inclusive business environment and a diverse supplier base foster collaboration that leads to innovative solutions, adds jobs and strengthens local economies. This also allows Cardinal Health to build long-term supplier partnerships that create maximum value for the 40,000 healthcare customers we serve. George Barrett, CEO, Cardinal Health

5 Current State Statistics Cardinal Health FY 2013 expenditures with small businesses, totaled $3.5B. Cardinal Health FY 2013 expenditures with Minority and Women-owned businesses exceeded $290 million. Cardinal Health maintains more than 2,500 small business relationships inclusive of small women-owned, disadvantaged, veteran, service-disabled veteran, minority, and hubzone based businesses. Cardinal Health maintains approximately 500 minority and women business relationships.

6 Creating the Culture for Success Listen to the voice of the customer & the business Trust the strength of our supplier diversity expertise Executive leadership sponsorship and visibility Share the accountability Business Process Leaders Contracting Teams Strategic Business Partners w/goal allocation Flow-down expectation to large business suppliers Strategic Alignment & Execution Early engagement and vetting Networking & Outreach Strong bench of potential suppliers Enterprise wide, multiple categories and channels

7 Sample Customer Report* *sample data shown, not reflective of real values

8 Customer Report Provides customers with insight to the percent of their contract expenditures that are awarded directly to minority, women, disadvantaged, small, veteran, service-disabled veteran, hubzone based, ANCs, and Indian Tribes, through Cardinal Health. Customers can be given direct access to run reports associated with their accounts, by requesting this capability via their Cardinal Health Sales Consultant. All diverse supplier classifications are pulled over from Cardinal Health s supplier registration tool and copies of the third party certifications on file. Copies of supplier certifications must be made via the supplier diversity team.

9 Team Members The Cardinal Health Supplier Diversity team has over 78 years of collective Supplier Diversity, Sourcing and Supply Chain experience. Cathy Mock Director, Supplier Diversity (614) Martha Holmes - Manager, Supplier Diversity & SBLO (847) martha.holmes@cardinalhealth.com Abigail W. Kofete - Manager, Supplier Diversity (614) abigail.kofete@cardinalhealth.com Bea Campion Data Management (847) Bea.campion@cardinalhealth.com