Partnering with vendors

Does the majority of your communications with suppliers revolve around problem resolution and sales presentations? If so, how do you get them to step up and improve service levels? How do you get them to work with you on innovation? How do you build a relationship that focuses their energies on your needs and benefits them in the process?

Those were some of the key questions Ken Piddington asked when he took over as CIO of Global Partners LP, an $8 billion energy company in the Northeast that sells a range of fuels to commercial, industrial and government operations.

There had to be a better way, Piddington thought. And after collaborating with some peers and doing more research, he put together Global's Strategic Partner Program, a well devised plan that he launched in the spring.

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Does the majority of your communications with suppliers revolve around problem resolution and sales presentations? If so, how do you get them to step up and improve service levels? How do you get them to work with you on innovation? How do you build a relationship that focuses their energies on your needs and benefits them in the process?

Those were some of the key questions Ken Piddington asked when he took over as CIO of Global Partners LP, an $8 billion energy company in the Northeast that sells a range of fuels to commercial, industrial and government operations.

There had to be a better way, Piddington thought. And after collaborating with some peers and doing more research, he put together Global's Strategic Partner Program, a well devised plan that he launched in the spring.

Part of the plan involves establishing vendor goals and annually reviewing performance against those goals, Piddington says. "We didn't really have anything to measure and gauge them before."

VENDORS AS PARTNERS: Full Q&A with Global Partners' Ken Piddington

But he knew there had to be something in it for the vendors to get them engaged. It is all about "building a relationship," he says. "That's why we called it the Strategic Partner Program, not the Vendor Management Program."

One component designed to benefit both parties: Quarterly Global Insight meetings. Global has agreed to give suppliers insight into business developments and key projects, which should help vendors more efficiently align products and services with Global's needs, but obviously also helps Global.

Piddington also created Vendor Showcases, in which suppliers are given the chance to come in and demonstrate their latest and greatest to the appropriate audience. "If a company is trying to demonstrate some marketing software, while just having me might be OK, it isn't going to provide the greatest value to them. So I'll bring in the marketers," he says.

A final vendor benefit: vendor awards announced at an annual dinner. There are awards for teamwork/collaboration, innovation and customer service, and then one of those three is also named vendor of the year. "For the vendor of the year, we are committed to issuing a press release and posting photos on the website," Piddington says.

He launched the whole effort at a dinner in March for 62 vendors, and the feedback has been positive. "I'd say 95% of them think this is a great opportunity. One or two have not been as enthusiastic as I would like."

That last bit of insight is just one of the many good things this program could deliver. Who needs partners like that?

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