About Supplier Diversity

2^nd Tier Reporting

In order to continue to try and help promote business opportunities for Small Business, Veteran-Owned Small Business, Service-Disabled Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, Women-Owned Small Business, Disabled Veteran-Owned Small Business, Minority-Owned Business, and Women-Owned Business Concerns/Enterprises, a corporate-wide 2nd Tier Reporting initiative has been established by Cisco and is maintained by the Global Supplier Diversity Business Development team.

Purpose of 2^nd Tier Reporting - Background

The Cisco2^nd Tier initiative was created to ensure that a “Good Faith Effort” is made to maximize contract opportunities for diverse suppliers that provide products and/or services to Cisco’s Prime suppliers.

Cisco’s Prime Suppliers may be asked to provide 2nd Tier Reporting for existing contracts or upon award of a contract. It is Cisco’s intention that these Prime Suppliers will report 2^nd Tier Spend on a calendar quarter basis through Cisco’s Comprehensive Vendor Management (CVM) Portal.

This 2^nd Tier Initiative serves as an enhancement to, and not as a replacement for, existing efforts aimed at increasing “direct” (1^stTier) opportunities for diverse suppliers.

Compliance to 2^nd Tier reporting requirements also provides the following:

• Enhanced customer satisfaction by meeting Customer requests
• Demonstrates Cisco’s total impact to the community by:
• Building positive brand and corporate image
• Building brand loyalty
• Gaining access to a rapidly growing market of minority consumers
• Enhancing Cisco’s ability to influence regulatory and legislative agendas via minority organizations.
• Contributes to the overall Supplier Diversity success

CVM Portal Access

All 2^nd Tier Reporting is collected via our CVM Portal. Each Prime Supplier must request access to the CVM Portal by submitting an email request to the Global Supplier Diversity Business Development team at cisco-2ndtier@cisco.com. The following information is required:

• Company Name
• Federal Tax ID (U.S Only)
• User Name (name of person providing the report)
• User Phone
• Email Address

You will receive an email from an Administrator with your login credentials. An automated notification will be sent to the user when the reporting period is opened. The reporting window will remain open for 45 days after calendar quarter close.

A training video can be accessed to learn more about Cisco’s Supplier Diversity 2^nd Tier Reporting. View WebEx recording now. Additional training can be provided upon request to the Global Supplier Diversity Business Development team at cisco-2ndtier@cisco.com.

After logging in, the system will present you with the 2^nd Tier Reporting fields, providing additional instructions and tips.

2^nd Tier Reporting Methodology

Cisco 2^nd Tier Reporting is based on the Indirect Allocation Method. It is not necessary to provide diversity spend reporting specific your business with Cisco, but as a prorated amount based on the % of Cisco revenue and your total diversity spend. The Cisco CVM Portal will make the calculations for you. Below is an example of the calculation.

Definitions

Prime Suppliers - A Prime is a 1st Tier supplier that provides the products/services and invoices to Cisco for goods and services rendered directly by that supplier.

2^nd Tier Supplier- A second tier supplier is a supplier that provides the products/services and invoices to the Prime Supplier for goods and services rendered for eventual delivery to Cisco.