BW LPG
“ It will be conditional to have all your ducks in a row on ESG,” Ricardo asserts.“ That’ s my take on it. It’ s not a matter of choice; it simply needs to happen.”
Building strategic partnerships BW LPG does not treat all suppliers equally. Ricardo employs the 1983 Kraljic Matrix, plotting suppliers according to supply risk and profitability impact.
Routine suppliers require efficient logistics management; leverage suppliers offer negotiation opportunities; and bottleneck suppliers need careful risk management. But it is the strategic suppliers that receive the deepest engagement.
“ We’ ve started setting up key account management with them,” continues Ricardo.“ So, from our side and from their side, we concentrate on much more than just price, quality and products.”
These relationships explore mutual efficiency gains. Ricardo calls these“ spirit teams” – collaborative groups focused on creating value for both organisations. Success requires transparency, which, in turn, requires trust.
“ That’ s the thing that has been lacking in a lot of cases in the past,” he observes.“ It still lacks in a lot of companies, where, if you fail to carry out criticality analysis and plot suppliers in different quadrants, you will treat all suppliers as if they are the same – and they are not.”
BW LPG’ s partnership with MCTC, a maritime catering company, serves as a prime example of a strategic partnership.
With 22 sailors aboard each vessel, quality food is essential – and Ricardo is in no doubt that MCTC meets this brief.
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