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©2012 Life Technologies Corporation. All rights reserved. The trademarks mentioned herein are the property of Life Technologies Corporation or their respective owners. CO111913 1112
lifetechnologies.com
Life TechnoLogies conTacTs
global Procurement [email protected]
global [email protected]
strategic sourcing Management (ssM) Team MRo/nonproduction-Related [email protected] [email protected]
supply chain Quality assurance [email protected]
R & D [email protected]
europe
asia [email protected]
Regional supply chain Qualitynorth [email protected]@lifetech.comasia [email protected]
supplier Diversity Program [email protected]
Supplier Management Program
32
Working together, we can eliminate waste, lower costs, improveperformance, operate safely, and preserve our environment.
We embrace the vital role played by our suppliers of materials and services, who continuously help us to deliver quality in everything we do. Working together, we can eliminate waste, lower costs, improve performance, operate safely, and preserve our environment. Our collective efforts allow us to meet the expectations of our customers, our communities, and our stakeholders.
High performance at the lowest total cost of ownership marks the beginning of this journey. These attributes, supported by integrated supply chains and impeccable quality, result in stronger and more mutually beneficial relationships. This brochure sets out the expectations required of all Life Technologies suppliers, and offers a road map for achieving strategic partner status with our organization.
If you are a current or prospective supplier of materials or services to Life Technologies, we invite you to assess your current performance and embrace the opportunity to become a strategic partner. Please feel free to contact a representative of our Global Procurement or Supply Chain Quality Assurance teams, who can help strengthen your relationship with us.
We thank you for your continuing interest in our company and our goals.
Greg Lucier Chairman and Chief Executive Officer
Paul AndersonHead, Global Procurement
Mizanu KebedeHead, Global Supply Chain Quality
Life Technologies supplier road map
Lean and Six Sigma principles employed throughout
LOW HIGHDelivery, quality, service
Valu
e
HIGH
Probationary status• Not meeting performance
objectives and expectations• Not cost competitive
Qualified supplier• Suitable quality management
system• Financial health• Capacity match• Business compatibility• Supplier corrective action
request (SCAR) containment and proactive response
• Change notification• Product consistency• Cost competitive• Continual improvement
road map
Preferred supplier• Risk management• Market intelligence• Supply chain transparency• Proactive issue resolution• Global account management• Process verification audit• Variation reduction• Supply safety and security• Environmental sustainability• Pay at consumption (PAC)/just in time (JIT)/punchout• Executed contract or
contractual agreement
Strategic partner• Technology road map• Proactive risk management• Supply base management• Lean• Six Sigma• R&D partner• Industry innovator• Proactive capability
development
Strategic partner
Preferred supplier
Qualified supplier
Probationary statusPOOR TOTAL PERFORMANCE
SuPPLIER MEETS PERFORMANCE AND COST ExPECTATIONS
SuPPLIER IMPLEMENTS PAC/JIT/PuNChouT
SuPPLIER DRIVES TECHNOLOGY
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Meeting our goal depends on the quality of our suppliersThe Supply Chain Management Program
Your obligationsThe Supply Chain Management Program sets forth the parameters that allow us to partner with and retain suppliers who consistently support and meet our performance criteria. Below we define the fundamental objectives and expectations that are crucial to the con-tinuing success of Life Technologies. Our suppliers must be the starting point in maximizing value to our customers. We expect our suppliers to:
Our goalThe Supply Chain Management Program, overseen by the Supply Chain Quality Assurance team, ensures that we meet our goal: that our customers will continue to receive products and services that meet or exceed their expectations. Supply chain management at Life Technologies is a strategically focused program based on continual improvement, proactive quality management, and collaborative teamwork. It is designed to enable Life Technologies to:
• Identify and select world-class suppliers through our supplier selection process, which includes a comprehensive quality system audit and an assessment of process compatibility
• Provide suppliers with regular feedback through scorecards and business reviews concerning quality and delivery performance, service level, strategic goals, and business needs
• Identify opportunities for process improvement via proactive supplier audits and working with our suppliers to implement solutions
• Engage with suppliers early in the product development process to drive quality into the R&D cycle with sustainable processes
• Identify and develop the capabilities of our suppliers to meet our needs
• Work collaboratively with our suppliers to drive out inefficiencies and costs in the supply chain through Lean and Six Sigma principles
• Manage change in the supply chain to minimize supply disruptions and manufacturing variation
• Acknowledge our appreciation for those suppliers who consistently demonstrate performance excellence and value creation
• Provide a competitive cost structure for all of their products and services while realizing year-over-year cost savings. This includes acquisition, implementation, and operating costs of products and services as well as aftermarket service and support
• Provide an uninterrupted supply of products and services, free from defects
• Expeditiously resolve any problems or supply disruptions, and take appropriate measures to ensure they do not recur
• Respond promptly to inquiries and supplier corrective action requests (SCARs) with clear, complete, and accurate information
• Provide coordinated global account management to meet the needs of our global company
• Ensure that products and services comply with the regulations and technical specifications for all localities to which products and services are provided
• Meet the performance expectations of Life Technologies: 100% quality, 100% on-time delivery, and schedule flexibility, as well as cost and cycle-time reductions
• Exhibit continual improvement of products and services offered, including, but not limited to, more efficient product development cycles and improvements in product performance
• Meet quality expectations on all items identified by Life Technologies as critical to quality
• Insure the safety and security of products delivered, through active management of all levels of the supply chain
• Implement controls to prevent the use of counterfeit, used, salvaged, or other nonconforming material
• Provide transparency into the supply chain so that Life Technologies can provide its customers with the information they need for regulatory or other requirements
• Provide a minimum 90-day notice on any product or process changes
• Adhere to the contractually agreed upon change control policy
• Initiate communication on potential problems and recommend viable solutions
• Provide effective worldwide factory and field support for all entities that have long-term product support
• Provide intelligence about the technical direction of the products or services that are being supplied to Life Technologies
• Manage their suppliers in the same manner as Life Technologies
• Drive product innovation and road map technology development in concert with Life Technologies
There are no shortcuts to quality and value.
Our employees proudly provide quality
products and services to help our customers
improve the quality of their products and
services, save money, and eliminate waste.
Our Supply Chain Quality Assurance team—
through the Supply Chain Management
Program—will help you understand how you
can be an active and valued partner in this
worldwide effort.
6
Becoming a supplier for Life Technologies
Data we need from our suppliersSo that we may evaluate the fit of each supplier within the corpo-ration, our Global Procurement team will request financial, EHS, insurance, and setup data at the beginning of the contract process. once approved, a supplier will be capable of purchases for MRo/nonproduction-related services. To become qualified to supply production materials and/or services, our Global Procurement and Supply Chain Quality Assurance teams will work with your quality and operations personnel to determine qualifications and capabilities.
How suppliers obtain sourcing contracts with usLife Technologies grants express authority to contract for goods and services to members of our Global Procurement team. Suppliers who deliver materials, perform services, or incur costs for any reason through the direction of Life Technologies employees who have not been granted express authority to contract for such items, and/or without an authorized purchase order from Life Technologies, are warned that they do so at their sole legal and financial risk. Contracting/agreement objectives Life Technologies wants to create performance-based contracts that:
• Drive positive performance criteria (quality, delivery, cost, service)
• Develop risk-sharing and proactive risk management
• Enable mutual continual improvement to optimize total cost of ownership
• Require subtier supplier and change management
• Create long-term, mutually beneficial service and support
• Design for environmental and community sustainability
Tangible Quality”Tangible Quality” embodies the unwavering commitment of Life Technologies to the quality of our products and services. Tangible Quality, inherent in all that we do, reinforces the loyalty of our customers and the strength of our brand—and is vital to our growth and success.
For our customers, Tangible Quality means that they can rely on our products and services to consistently meet or exceed expectations. We aspire to be the industry benchmark for quality and dependability. For regulatory authorities, Tangible Quality means Life Technologies meets or exceeds all applicable regulatory requirements and operates according to the highest ethical standards.
For employees, Tangible Quality means that we take ownership of the quality of our individual daily tasks—ensuring quality from design to delivery. Through continuous improvement and functional excellence tools and principles, we are relentless in our pursuit of perfection.
For our organization, Tangible Quality means that our culture is dedicated to achieving superior quality by utilizing leadership and teamwork, along with effective quality systems that include internal controls and the resources necessary to realize our vision.
The right fit—what every prospectivesupply partner needs to know
98
WORkING TOGETHER TO STRENGTHEN SuPPLIER RELATIONSHIPS
Integrated technology solutions help us streamline the supply chain
It is our objective to remove nonvalue effort, wherever pos-sible, across an integrated supply chain for the benefit of both Life Technologies and the supplier. With a mutual investment in business-to-business technologies, we can take a negotiated contract and drive a seamless “requisition-to-check” process that minimizes touch. The following outlines the tools used by Life Technologies to achieve this goal.
Vendor self-service (VSS): VSS directly links our requirements for inventory/direct material and our customer’s needs to our pre-ferred suppliers. A web-based portal, VSS enables our preferred suppliers to electronically download current delivery schedules, forecast information, the prior week’s consumption, and open orders (the schedule is updated weekly).
Pay at consumption (PAC): The inventory resides at a Life Technologies facility, but the supplier retains title to and an insurable interest in the product until it has been consumed by a production or sales order. Life Technologies pays weekly, based on consumption, without receiving an invoice. Requirements and consumption are posted weekly on the VSS portal.
Just in time (JIT): The supplier maintains inventory at their facility and delivers pull requirements posted on the VSS portal.
Punchout: For indirect/R&D procurement, Life Technologies currently uses punchout technology to drive spend to strategic suppliers. Suppliers can reach the status of a supplier available in our punchout technology through performance, a solid low-total-cost-of-ownership model, and a strategic contract.
Benefits of PAC for suppliers Benefits of PAC for Life Technologies
• Powerful planning tool via weekly updates on the forecast and production needs of Life Technologies
• Increased inventory turns
• Preferred partner− For production needs− For R&D projects
• Greater manufacturing flexibility
• Accounting problems detected earlier • Prompt returns
• Streamlined payment process • Streamlined payment and return process
• Improved cash flow • Improved cash flow
The Strategic Sourcing Management team—your primary contactThe Strategic Sourcing Management (SSM) team at Life Technologies is your primary contact during the inception and maintenance of the supplier relationship. Within Life Technologies, the SSM team works closely with business product managers, R&D, and new-product introduction teams to manage the long-term direction and life cycle of our commodities. The SSM team leads the cross-functional global commodity teams to determine overall strategy, identify suppliers, lead the RFP/RFQ process, plan the negotiation strategy, and determine second sourcing and risk mitigation plans. This high-level management of the supplier relationship ensures that plans are successfully implemented.
The Regional Procurement team—your day-to-day interfaceThe Regional Procurement team at Life Technologies is your day-to-day contact point for the execution of the relationship. The team will provide requirements, purchase orders, and performance feedback and metrics. keys to mutual success are interactive communication, a solid exchange of data and expectations, automation of information flow (to the extent possible), and strong feedback. Our team works with suppliers to optimize the flow of material to ensure availability at the lowest total cost of ownership.
10 11
Ethics and business conductOur commitment to integrityWe strive to create an atmosphere that supports the highest standards of ethics and integrity. We expect honesty in all that we do. We are committed to compliance with all applicable laws and regulations wherever we operate throughout the world.
Standards of Business ConductLife Technologies continually seeks and enlists companies with the legal right to sell the materials and services offered. Financially sound, technically capable, well-managed suppliers with effective in-house quality systems and the ability to meet the demanding supply chain management objectives of Life Technologies are critical to our success.
Conflicts of interestLife Technologies expects our employees to make business decisions that are in the company’s best interests. No employee or member of the employee’s immediate fam-ily may be involved with any business that competes with or does business with Life Technologies without disclosing such relationship as outlined in our policies.
Gifts and gratuitiesEmployees and representatives of Life Technologies must conduct business with suppliers on the basis of service, qual-ity, delivery, and cost. Our employees are not permitted to receive gifts, entertainment, or other gratuities of more than modest value from suppliers.
Press releasesLife Technologies reserves the right to review and edit all supplier or third-party press releases.
Life Technologies logoWritten approval is required to use the Life Technologies logo in any supplier or other third-party materials.
Reporting concernsLife Technologies expects any supplier who feels pres-sured by an employee of Life Technologies to violate the law or our Standards of Business Conduct to contact the Life Technologies hotline:
Within North America: 800.932.5378 outside of North America (collect): +1.704.552.1236
Our commitment to environmental sustainability As a company involved in improving the human condition, Life Technologies is dedicated to protecting the environment and promoting the health and safety of our employees, customers, and citizens in the communities in which we operate. To meet this commitment, we seek to minimize the health effects and the safety and environmental impacts of our products and processes. In partnership with our suppliers, we have initiated programs to select greener and less toxic materials, as well as incorporate sustainable packaging.
With an ever-growing global emphasis on the environment, Life Technologies offers preference to suppliers that value:
Efficiency • Measures and manages greenhouse gas emissions and
ultimately reduces the total carbon footprint of the indirect emissions of Life Technologies
• Implements new processes to reduce waste and inefficiencies and establishes methods to recycle packag-ing or supply reusable containers
Ethical practices • Ensures a safe work environment for employees and
contractors
• Formally includes health, safety, and human rights issues in performance standards (these generally include standards for working hours, freedom of association, and antidiscrimination and antichild labor practices)
Sustainability • Works within a life cycle assessment to continually
minimize the environmental footprint of products, from the selection of raw materials through end-of-life disposal
• Makes environmental compliance a priority to avoid business interruption
• offers environmentally preferable options
We urge our suppliers to partner with us in progressive global citizenship practices.
Our commitment to supplier diversityLife Technologies recognizes that small and diverse businesses help drive innovation and competitiveness within the supply chain. Diverse businesses are compa-nies (large and small) owned and controlled by minori-ties, women, or veterans, that we seek to develop as valued members of our supplier base.
Small business concerns include those owned and controlled by:
• Women
• Veterans, especially service-disabled veterans
• Socially and economically disadvantaged individuals (small disadvantaged businesses)
• Those certified by the SBA as historically underutilized Business Zone (HuBZone) firms
It is the corporate policy of Life Technologies that small businesses shall have the maximum practicable opportunity to participate in the competitive process for purchase orders and contracts. Such businesses will be given an equal opportunity to compete for material and service supply contracts that they are technically and financially qualified to deliver.
Suppliers must offer maximum practicable opportunity for small business participation (as required by Federal Acquisition Regulation 52.219-8) in all contracts (other than to small businesses) that exceed $550,000 and that present subcontracting opportunities.
Suppliers are recruited without prejudice towards race, gender, creed, social preferences, or age of the suppli-er’s ownership, management, or employees. If you have any further questions, please contact Life Technologies.
