When it comes to doing business with pharmaceutical companies, industry experts say it's important for suppliers to identify and convey their companies' core capabilities and strengths, and reach out to the right people at the right time.
The National Gay & Lesbian Chamber of Commerce's (NGLCC) hosted its third quarterly teleconference call, this time focusing on doing business with the pharmaceutical industry.
The call's subject matter experts included Brent Friedman, site-sourcing manager of global procurement for Merck & Co., Margaret Dubell, sourcing director for Johnson & Johnson, and Sheri Shafir, associate director of supplier diversity for Novartis.
The procurement and supplier diversity directors provided certified business owners and those interested in having their business certified by the NGLCC with insiders' advice on how LGBT businesses can be competitive in the pharmaceutical industry's search for suppliers, and explained how the industry is unique when compared to other sectors.
Because the industry is stringently regulated, pharmaceutical companies try to make sure they work with suppliers that are compliant with those regulations.
"The pharmaceutical industry is highly litigious," Friedman said. "This compounds the concerns we have around the service and quality [of suppliers' products and services]."
While many drug companies have supplier diversity and procurement programs that focus on LGBT-owned businesses, Shafir said a business's "diversity status" is second to its area of expertise when it comes to choosing a supplier. Instead of assuming the "we can do it all" attitude when initiating business dealings with the pharmaceutical industry, Shafir advises businesses to "do their homework" and understand the company and its needs.
"Understand your area of core competency, and look at what the company's business needs are and try to be the ideal candidate," Shafir said.
Once a business has determined how its abilities match up with a drug company's needs, it can begin responding to RFP postings. As the first test of how a business handles a project, responding the RFP properly is an important way for the business to show its ability to meet deadlines and follow protocol.
While the panel of experts agreed that "less is more" when it comes to responding to the RFP, Dubell also noted that if suppliers feel they have some kind of unique innovation or characteristic that sets them apart from competitors, they should include this in the RFP-even if it only makes it into the cover letter.
The time it takes to complete an RFP will depend on a number of key factors, including the type of project, its scope and budget. The time it takes to select a supplier after RFPs have been closed can vary anywhere from two or three weeks to a year.
With RFPs in hand, a pharmaceutical company may put potential suppliers through an auction process, or may first narrow down suppliers before bringing a few potential vendors to formally pitch their business for the project.
Because many pharmaceutical industry contracts last between two to three years, the panel suggested that potential suppliers check in with a company to determine where it is in its contract cycle. It's also a great way to stay on the company's radar.
"[Sharing] innovative ideas is a nice way to keep in touch [with a pharmaceutical company], so it shows that you're looking at life through their lens and you'll stay on the radar screen," Dubell said.
Shafir suggested attending matchmaking events, which many pharmaceutical companies host for potential suppliers, to meet members of a company's procurement and start building a business relationship.
"If you meet a person face-to-face, they know you and you're not just another e-mail in their inbox," Shafir said.
Additionally, the experts collectively agreed on the importance of registering as a supplier before submitting a response to an RFP. Many corporations have supplier databases, which are used to invite certain suppliers to matchmaking events and to search for compatible suppliers when an appropriate RFP surfaces.
But more effective than appearing in a database search, is building relationships, Shafir stressed.
"I can't emphasize enough that it's about relationships," she said. "It's up to the suppliers to build relationships with supplier diversity advisors, so they can refer to you when there's an RFP that comes up that's relevant to you."
