Differences Between a Vendor and a Partner

Interview with Robert A., Assistant Vice President-Deutsche Bank

How would you define a partner relationship and a vendor relationship? What are the main differences?

Vendor relationships are those organizations that provide prescriptive services to my organization as needed. Partner relationships are those individuals and organizations that understand my organization’s mission and vision and can deliver strategic and tactical services to help move that vision forward. The main difference is the individual consultant.

What is your ideal business relationship, vendor or partner? Why?

The ideal business relationship is a Partner. Usually organizations source external relationships to leverage specific expertise needed to accomplish a defined goal. Partners take the necessary time to understand the vision behind my organization’s goals and provide strategic and tactical input to ensure we exceed expectations.  

Do you treat vendors and partners differently? 

I do treat vendors differently from partners. I think the difference is the amount of time I spend with vendors is less because it is more transactional, not transformational.

Is it possible to transition a provider from a vendor relationship to a partner relationship? How so? Is it generally more effective to establish a partnership early on rather than to transition into one?

It is possible to transition a provider from a vendor relationship if that vendor understands my organization’s vision and is capable of helping me convert organizational vision into tactical delivery using their resources.

Business is built on relationships. It is always preferable to establish a partnership early on. The ability for the relationship to be a partner versus vendor is somewhat based on the relationship I have with the external organization; especially its representative.

Is it beneficial to take the time to build a partner relationship? How do you build a relationship with a vendor?

Yes, it is beneficial to take the time to build a partnership. You build a relationship one individual at a time, not one transaction at a time.

What key qualities are necessary to build a partner relationship (trust, collaboration, open communication, responsiveness)?  How important is it for the client and the supplier to both have these qualities?

Trust is critical. I have always believed that if I can’t trust you then we should not be doing business together. I still believe that today. If there is trust in the business relationship, communication and collaboration are much more likely to be successful. Incidental issues that arise can be resolved much easier in partner relationships.

Why is it important to establish your business goals and expectations early on in a vendor/partner relationship? Are there specific topics that need to be identified early on before forming a partner relationship?

The last thing I want to do is waste time and resources with a vendor that is not able to meet my organization’s needs.  Establishing clear expectations up front allows the vendor to determine whether or not they can help me accomplish my objectives. It also allows me to get a feel of the level of support the vendor can provide to meet and exceed my business goals.

Specific topics that need to be identified early on include:

• Breadth of project scope
• My budget and other resource constraints
• Vendor resource capabilities
• Vendor proven capability to deliver results

• Success measures

How long does it generally take to build a partner relationship? At what point do you determine you have built a partnership with a supplier (is it after a few ups and downs)?

I do not believe there is a defined timeline to building a partner relationship. I think you determine if you have a partnership before a few ups and downs and that determination is influenced by the individual relationships I have with representatives within the vendor organization.

How do you maintain a partner relationship? Are there differences in how you manage a partner relationship and a vendor?

A partner relationship is maintained by always doing what you say you are going to do and having the client’s (my company) best interest in mind when delivering services.

From your past experiences, does building a partner relationship create a better success ratio?

Absolutely. Building a partner relationship creates a better success ratio.

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