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Corporate Responsibility Report 2008

Case studies

Mentoring diverse suppliers in the US

Callis Construction Services (CCS) is a minority-owned contracting company in Durham, North Carolina. The company’s President, Jesse Callis, took part in our diverse supplier mentoring programme, beginning in 2004, which helps suppliers form partnerships with GSK and other large corporations.

As part of the programme, we assessed CCS’s business processes and identified issues preventing the company becoming a GSK preferred supplier. Concerns ranged from management accessibility to the ability to scale up their supply to the needs of GSK. The company implemented improvements based on our recommendations which enabled it to become a preferred supplier and win business worth around $2.8 million.

The success of this partnership enabled CCS to contribute to its local community. It paid for two employees to attend a local university and Mr Callis developed a training programme with Durham Technical College which prepares minority construction workers for management positions on major projects in the area.

When asked about his relationship with GSK, Mr Callis said, “GSK has been a wonderful mentor. They are a real leader in their commitment and actions to help diverse minority suppliers. In my case, they provided assistance that has led to a very significant growth of my business. This in turn has provided jobs for others in the Durham and surrounding area ensuring that monies paid by GSK stay in the local communities. This is a win for everyone involved.”

Helping to improve supplier performance

In some cases we provide assistance to suppliers that fail to meet our minimum EHS and quality standards to improve their performance. This enables companies to improve their work practices and win more business. It helps us to develop the supply chain we need to provide a secure supply of high quality medicines.

For example, in 2008 we provided support to a potential supplier of active pharmaceutical ingredients in India. The supplier received an audit score of 41 per cent, below our 50 per cent minimum standard. Following the audit we made recommendations for improvement, provided coaching and facilitated meetings between the supplier and expert consultants.

In 2008 the supplier achieved an audit score of 55 per cent and was accepted as a GSK supplier. The audit found that the company is managing key risks effectively and has established a detailed improvement programme. We will continue to monitor progress against this improvement plan.

The success of this collaboration relied on the efforts of GSK staff as well as the willingness of the supplier to recognise that improvements were needed. It has resulted in a more secure supply chain for GSK and a safer working environment for workers at the facility.