Customer Perspective: Do Your Partnerships Pack a Punch?

Posted - June 3, 2014

Customer Perspective: Do Your Partnerships Pack a Punch?

By Ernie Kremling, Vice President of Operations at KMG Chemicals

Partnerships are extremely important on a number of levels, and they drive so much of what we do in our industry – but what exactly are the ins-and-outs of a strong, mutually-beneficial partnership?

While the term “partnership” is very over-used in many industries, fundamentally, it means that both parties working together are achieving the desired results. However, when KMG Chemicals began looking for a partnership, we were looking for something that was far more structured in order to be beneficial on a much higher level.

In 2007, KMG almost doubled in size due to a large acquisition, and the complexity of logistics and supply chain involved in that acquisition was greater than anything we had experienced before as a company. We knew that we needed additional expertise to support not only our initial supply chain needs, but also to develop a long-term supply chain strategy.

We determined that Transplace was the right partner for us because of a very key reason – both the comparative drivers and facilitators of each company were a perfect match.


Key Considerations When Evaluating a Strategic Partnership

  • Comparative drivers:  Do the desired results of each party match up?  This could include results such as cost benefits, additional market share, or growth.
  • Facilitators: Do the cultural aspects of the business match up? This is a key aspect of the partnership – if the cultures are not compatible, success is just not going to happen!

Particularly important was that KMG and Transplace have the same objectives and desired benefits from the relationship, as well as a compatible culture.

As the relationship between KMG and Transplace has grown and evolved, these comparative drivers and objectives have only become clearer and more integrated. The relationship has not only evolved in terms of transparency and understanding, but both companies now have a distinct view of the other’s cultural aspects and how we best incorporate and work with each other.

What are some important aspects you consider when looking at the level of success of a partnership?