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Supplier Diversity

Supplier Diversity. Prime Supplier Second Tier Introduction. Shell Supplier Diversity Office November 5, 2009. What is Second Tier?.

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Supplier Diversity

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  1. Supplier Diversity Prime Supplier Second Tier Introduction Shell Supplier Diversity Office November 5, 2009

  2. What is Second Tier? Second Tier is aprocess that requires prime suppliers to address participation levels for Minority & Women owned business (M/WBEs) through inclusive contract language and establishing measurable goals and expectations on behalf of a Company’s projects.Itis a partnership between the corporation, their prime suppliers and M/WBEs--serving as an enhancement to, and not as a replacement for, existing inclusive first tier efforts.

  3. How is Second Tier Defined? Direct Second Tier Expenditures – M/WBEexpenditures for goods and services reported by the prime supplier that Can be directly linked to the Company’s projects. Indirect Second Tier Expenditures – M/WBE expenditures for goods and services reported by the prime supplier that Cannot be directly linked to the Company’s projects (e.g., facilities maintenance, office supplies and janitorial services).

  4. Benefits of Second Tier Shell Prime Supplier M/WBE • Offers the greatest opportunity to immediately impact supplier diversity efforts • Fosters supplier inclusion by increasing accountability of our prime suppliers • A natural progression to further develop and strengthen Shell’s Supplier Diversity Program • Further promotes economic development in the community • Impacts the bottom line through increased competition throughout the supply chain • Provides new innovation and business solutions from new sources • Recognizes the commitment of inclusion as a key business driver to influence economic development • Meets requirements and expectations of major customers • Gains access to growth markets of minority and women consumers • Offers more opportunities for business growth and development in addition to first tier • Provides valued business opportunities in a global contract environment • Acts as an additional revenue stream to complement their growth acceleration/size, enhancing their competitiveness • Increases access to new companies and industries

  5. What qualifies an M/WBE for Second Tier Reporting • A firm is at least 51% owned, operated and controlled by an ethnic minority group member or by a woman • Certification of the firm by a local business council/affiliate of WBENC or NMSDC • Completion of the Supplier Profile at www.Shell.com/us/MWBE

  6. Shell’s External Reporting Process • Establish reporting frequency with Shell BU/Supplier Diversity Advocate (preferably quarterly) • All prime supplier information is kept Confidential and used by the Shell business units to report second tier spend to the Supplier Diversity Office Only

  7. Shell Supplier Diversity & Second Tier Program Contacts • Jude Darbonne UA CP Representative & Supplier Diversity Advocate 504.728.4154,jude.darbonne@shell.com • Donovan Casanave Mgr. Support Services, Supplier Diversity/Diversity Outreach 713.241.8383,donovan.casanave@shell.com

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