When Thomas Schultz Launched

Veterans Imaging Products (VIP) in 1996, the service-disabled Vietnam vet was looking for an opportunity to start a business that would "give something back." Schultz served in the U.S. Army and was in the central highlands of the Republic of Vietnam when he was medically evacuated to the U.S. military hospital in Japan. He spent more than four months in Japan until he was reassigned to the Saigon area for another tour. The military vet also spent time in veteran medical facilities after he was released from the U.S. Army. Based in Elmhurst, Ill., Schultz was already working for a year supplying eco friendly, recycled ink cartridges to local veteran hospitals when the idea struck him to officially form VIP and start selling to other government agencies .As part of that strategy, Schultz inked a multi-million dollar contract to supply San Francisco-based McKesson Corporation with toner cartridges for photocopiers and fax machines, general office products and janitorial supplies.
 

McKesson, a Fortune® 18 company, is the largest pharmaceutical distributor in North America,supplying more than 40,000 U.S. healthcare locations from Wal-Mart to the Department of Veteran Affairs to community pharmacies. The drug maker seeks companies like VIP to form supplier diversity partnerships with, said Nancy Scott-Rogers, the company’s supplier diversity director. To achieve that goal, McKesson holds several meetings throughout the year to help veteran-owned companies identify business opportunities and develop relationships with the pharmaceutical giant. One example is the Veteran Business Forum, an annual event hosted by McKesson that connects representatives from a handful of veteran owned businesses – this year it was 36 — with purchasing managers for one-on-one networking.
 

McKesson execs also participate in numerous national veterans meetings each year. In January 2006, the company’s director of supplier diversity sat on a panel at the National Veterans Entrepreneurship Conference and in June, Scott-Rogers sat on a panel at the National Veterans Small Business Conference. As a large vendor with the Department of Veterans Affairs, McKesson supplies pharmaceuticals to all of the VA’s medical centers and outpatient clinics, as well as the VA’s Consolidated Mail Outpatient Pharmacies (CMOPs), which it has done since 2004. McKesson is a leading healthcare information technology film in the U.S., with its software and hardware installed in more than 70 percent of the nation’s hospitals with more than 200 beds. It also helps prevent more than 700,000 medication errors every week through its barcode scanning technology. The pharmaceutical industry is comprised of large companies, often making it a challenge for McKesson’s supplier diversity program to reach minority-, small and veteran-owned businesses, according to Scott-Rogers. "Because 98 percent of our spend is pharmaceutical and is customer driven, MWBE and veteran-owned companies are faced with the challenge of competing with the major pharmaceutical companies and are not often in the position to develop and bring pharmaceutical, medical device, or health-care products to market," said Scott-Rogers.
 

At McKesson, Scott-Rogers is primarily responsible for developing and strengthening strategic partnerships with all diverse business categories. Prior to McKesson, Scott-Rogers worked as senior director of over the counter (OTC) products, director of sales promotions and retail program manager at Bergen Brunswig in from 1980 to 1997. Founded in 1833, McKesson is a public company (NYSE: MCK) with more than 32,000 workers. For the year ending March 2007, the pharmaceutical giant generated $92.9 billion, up from $88 billion one year earlier and $80 billion for the year ending March 2005. This year, the company reportedly generated $100 billion. Its stock was trading around $53.00 per share in mid-April and ranged from $51.08 to $68.43 over a one year period. McKesson’s Supplier Diversity Program aims to reach as many VOBs and SDVOBs with procurement opportunities. "McKesson’s commitment to supplier diversity is an integral part of our culture," said John Hammergren, chief executive of McKesson. "At McKesson we recognize that fostering relationships with small, minority-, women-, and veteran-owned businesses drives innovation, deepens our understanding of our customers, fuels mutual growth, and contributes to economy in the communities we serve."
 

In addition to working with companies to build its supplier diversity division, McKesson provides support and guidance to small and diverse businesses through its mentor-protégé program, which was developed in 1994. Scott-Rogers recommends that VOBs visit the company’s website www.mckesson.com to learn more about how to do business with McKesson. "We encourage suppliers to self certify on the McKesson website," said Scott-Rogers. "This allows us to contact them as opportunities become available. We also can connect with the appropriate category manager or business unit for introductions.""There is not a time schedule for the pharmaceutical side of the business. We connect and facilitate when a vendor is viable or when a customer requests a new supplier."
 

"Potential suppliers undergo a D&B credit review and must be EDI capable," according to Scott-Rogers. Richmond, Va.,-based Promotional Considerations, supplies logo-emblazoned shirts, sports bags, coffee mugs, writing instruments and other items that accompany the various events and programs for McKesson customers and employees. Founded in 1984, Promotional Considerations is a division of Vanguard Industries, which acquired the company in 2006. Vanguard is owned by Air Force veteran (1960 - 1965) Bill Gershen. Promotional Considerations won a three-year contract, which accounts for about 25 percent of their revenue, said PC’s president, Jeff Marks."The deal is worth between $1.5 and $2 million per year and will save McKesson 10 percent over our previous vendor," said Austin Kelly, category manager in Corporate Procurement at McKesson.
 

"When execs at Promotional Considerations learned about McKesson’s request for proposal in August, the company went to work devising a thorough75-page response that highlighted its qualifications and played up on the VOB angle," said Marks."You have to be able to show what you can offer and follow through on your promises," explained Marks. "It’s also critical to stress the VOB connection because it’s another classification that is as important as minority- or woman-owned."

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