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The supplier diversity development program at Schering-Plough Corp (Kenilworth, NJ) dates back to the early 1990's, Raul Mercado says. But now the company is making a renewed commitment to a diverse vendor pool, and Mercado was recently brought in as the company's first full-time supplier diversity manager.
"Schering-Plough has always been committed to developing diverse suppliers, and more and more we're realizing the value of small businesses and the level of innovation they can bring," Mercado explains.
The healthcare company is science-centered, offering prescription, consumer and animal health products used by patients and caregivers in more than 120 countries. Its 2005 net sales totaled $9.5 billion and the company invested $1.9 billion in R&D that year.
Mercado joined the company in 2006 from a job with the New York and New Jersey chapter of the NMSDC. He has worked closely with WBENC, the SBA and the state of New Jersey in developing small and diverse businesses.
Leveraging purchasing
Christopher Dunphy is a manager in the company's global strategic sourcing group. "We're looking at everything our vendors are providing us to realize the total potential of each relationship," he says.
Mercado notes that being part of the Schering-Plough global strategic sourcing department gives him access to sourcing managers and buyers and insight into upcoming procurement opportunities. "When you're working in supplier diversity, it really helps to be part of the supply-chain organization and have access to the whole purchasing process," he says. "We're all working on this together and it's really exciting to be part of a team devoted to making sure supplier diversity is part of the overall procurement process."
"Opportunities are across the board at Schering-Plough," Dunphy adds. "We're a research company, a manufacturer and a sales company. We've always taken a very active approach to supplier diversity development and we have diverse vendors in most areas."
The new program, he adds, has the full support of senior management.
Meet Matrix
Sharon Olzerowicz is president and CEO of Matrix Information Consulting (Rochelle Park, NJ), one of Schering-Plough's diverse suppliers. "We're an IT consulting company, and we also do permanent placements for our IT consulting customers," she explains.
Olzerowicz started Matrix in 1986. Before that she worked for a very large IT consulting firm, selling consulting services as applied to business solutions. Then she became associated with a startup company in the same line.
Working for the startup took her into almost every aspect of the business. She learned a lot, but the young company had funding issues, and Olzerowicz was soon thinking about a longer-term situation.
"I'd seen both the very largest and the very smallest, and I was turned on by what was going on in technology. I saw an opportunity to do a real stellar job, better then either the large company or the startup.
"The timing was right, my energy was high and I was dying to prove that I could do it better," she recalls. "And I was right! It was is the best thing I've ever done.
"I've been very successful, I have a financially solid company that is self funded and has tremendous capital backing for growth. We're always looking for more opportunities with our current customers as well as working to expand our client base."
250 and counting
Matrix has about 250 employees, including a main office infrastructure of thirty staffers working on sales, fulfillment, recruiting, accounting, QA and internal IT. Most of the rest are tech pros stationed at client sites like Schering-Plough.
The company has clients in more than a dozen states. About half its work is in the pharmaceutical area. "Schering-Plough was our first prestigious pharmaceutical client back in the early 90's, and we've parlayed our good name and Schering-Plough's good reference into work with seven other pharmaceuticals. It's been very helpful to have the background that we do of specialty pharma projects."
Matrix also does some international staffing, in Switzerland, Spain and Puerto Rico, for example. "We work wherever our clients work," Olzerowicz declares.
"He knew our good name"
Olzerowicz notes that she predates Mercado and even Dunphy in her relationship with Schering-Plough. "A director I knew moved to Schering-Plough back in the early '90s. He was anxious to give us an opportunity.
"Back then WBENC wasn't there to be a certifying organization but we earned our way in, pretty much one buying manager at a time," she recalls. "Then as Schering-Plough's supplier diversity program grew our growth accelerated too. Our revenues were about $5 million when we began working with them; now we're almost $35 million in total sales."
Consulting is unusual
Consulting is a harder sell than goods and simpler services, Olzerowicz reflects. "The project managers are involved in each buying decision so we have to do a double sell, first to procurement and then to each buyer.
"Every day we sell anew. We're not done selling after we pass procurement; we are constantly selling. We have to hear what they need, we have to deliver, and good references are very important."
Dunphy heartily agrees. "Schering-Plough values performance," he says. "Vendors who stay with us for long periods of time are providing continuous improvement, meeting the needs of the company and exceeding our expectations."
Certifications
Schering-Plough is a member of WBENC and NMSDC, and works with the SBA, Small Business Development Centers, the state of New Jersey, the Veterans Administration and similar organizations. "They give us access to thousands of diverse vendors, but the company prefers diverse vendors with government certifications provided by the SBA and its central contractor registration (CCR.gov)," Mercado notes. "We're continuously seeking small, minority, woman, disadvantaged, veteran, service disabled vet and HUB Zone certified suppliers."
Matrix has been certified by WBENC since 1999. "Through them, we mentor other companies and help them with the certification process," Olzerowicz explains.
"Matrix has its own supplier diversity department, and a commitment to work with diverse suppliers," she notes with pride.
Schering-Plough.com
Mercado reveals that Schering-Plough is about to launch an online vendor registration portal on its website. "It's going to be a tool that our strategic sourcing people will use to access vendors. It will let us pre-qualify vendors and open up even more opportunities for diverse vendors."
He's also working on an open-house matchmaking event. "It's something that's necessary and we will be doing it," he says.
"A lot of good, positive things are going on in regard to Schering-Plough's supplier diversity development. It's a lot of work, and we're enjoying it."
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