MBN USA

November 03, 2021

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Merck joined BDR in 2017

“Becoming a member of BDR not only was about getting a spot on the BDR list, but also it was about illustrating to suppliers and the diverse communities that our patients live in that we are committed to providing opportunities and creating economic impact through our business practices.” — Raul Suarez-Rodriguez, director, global economic inclusion & supplier diversity

Q: When did your company begin its supplier diversity program?

A: 1985.

Q: Can you tell us a bit about your supplier diversity program history?

A: Merck’s Economic Inclusion and Supplier Diversity Program celebrated its 36th anniversary this year. It held its first Minority Business Opportunity Fair in Rahway, New Jersey, in 1985, where 25 minority- and women-owned businesses were invited to meet with Merck and discuss business opportunities. Five of these original 25 diverse suppliers continue to do business with Merck today.

Supplier diversity became a strategic business initiative in 2005, and in 2007, supplier diversity was added to the corporate scorecard. By 2015, Merck’s program became global, extending beyond EMEA [Europe, Middle East and Africa] and NORAM [North America and Mexico] to JCAP [Japan China Asia Pacific] and LATAM [Latin America] as well. The name of the program officially changed to Economic Inclusion & Supplier Diversity.

In 2016, the program became a part of the Executive Committee’s Scorecard, and in 2017, Merck joined Billion Dollar Roundtable [Inc.], spending over $1 billion annually with diverse businesses. Last year was one of celebration with the 35th anniversary of the Economic Inclusion & Supplier Diversity Program.

To celebrate this milestone, we decided to revamp our Tier II program and launched the first Virtual Engagement Center. The revamp included two events in June and November 2020 that invited diverse suppliers globally and domestically to connect with procurement, attend panel discussions featuring leadership and meet prime suppliers in the virtual exhibit hall.

Q: Why did your company decide to become a member of BDR?

A: Merck set out to be a member of BDR, as membership represents a prestigious concept — spending over $1 billion annually with diverse suppliers. As a company that holds economic inclusion and supplier diversity as its key pillars and strategic business imperatives, it was important to Merck leadership and employees to put into action and demonstrate a commitment to spending with diverse businesses. Becoming a member of BDR not only was about getting a spot on the BDR list, but also it was about illustrating to suppliers and the diverse communities that our patients live in that we are committed to providing opportunities and creating economic impact through our business practices.

Q:  Besides having a $1 billion annual spend with diverse suppliers, what does it take to be a BDR company?

A: Beyond having a $1 billion annual spend with diverse suppliers, it takes commitment to the diverse supplier community and internal engagement to ensure the utilization of diverse suppliers results in economic impact.

It’s not about counting the spend but making the spend count. It’s not enough to check a box and utilize a diverse supplier; it’s about providing opportunity for development and growth to diverse businesses.

Through the utilization of diverse businesses, we can measure the economic impact our spend has within the communities our diverse suppliers live and work in. It can be measured by jobs created/sustained by that spend, as well as the wages paid by that spend to the diverse businesses. To be a BDR company, you must look beyond the number and become capable of measuring the economic impact of diverse spend and instill a culture of economic inclusion and supplier diversity across your organization.

Q: What are some best practices or lessons learned you can share with companies striving to reach the $1 billion diverse spend mark?

A: A best practice to share with companies striving to reach the $1 billion diverse spend mark is ensuring there is executive buy-in and support for diverse suppliers. To create a sustainable and holistic commitment to economic inclusion and supplier diversity, top-down support is needed. Merck considers economic inclusion and supplier diversity as business imperatives and key pillars to the organization; leadership has continually instilled the importance of utilizing diverse suppliers across the entire enterprise.

Q: What advice would you give to corporations that would like to become BDR members?

A: This is a tip rather than advice. If you are seeking to become a BDR member, please get a copy of the BDR “Supplier Diversity Best Practices” book. It outlines all the best practices in supplier diversity — tools, techniques, technologies and tips — simplifying the information, making it easily accessible and providing ideas and solutions for supplier diversity programs.

Q: What advice do you have for MBEs interested in doing business with your company?

A: MBEs interested in doing business with Merck should view supplier diversity individuals as their advocates within the corporation to ensure they have access to business opportunities and can connect with the appropriate procurement individuals.

Doing business with diverse suppliers is one of our key pillars. However, being a certified diverse supplier does not guarantee business with Merck. An MBE will still need to meet project qualifications and show how you can set yourself apart and bring value to the organization.

To learn more about Merck’s supplier diversity program, visit merck.com/company-overview/suppliers.