Vendor Value

In today's CU Times e-mail blast there is an interesting headline about Digital Credit Union. It seems they have given an award for "business partnership excellence" to one of their vendors. I like this. If you look at the general structure of Michael Porter's value system concept, you see that vendors/partners are an important component of the value you deliver to customers (or members). 

To add real value vendors have to adequately support, if not enhance, your competitive standing. This means that they have to be tied in to your strategy, what you value, the consumer "message" you broadcast to members, so on, and so forth. If vendors understand you, then they can better support you. 

So many vendor relationships seem to me to be adversarial. I often hear complaints about core system providers (one is as bad as the next), leagues (they deliver very little value), indirect lenders (nothing but junk paper), etc. I think the root of these complaints is that expectations, and philosophy in general, have not been communicated to the vendor in a clear way. Expectations not verbalized will certainly mean expectations not met.

Way to go Digital in recognizing that vendors are deserving of a reward for their efforts at truly partnering in your strategic success. In publicizing this award, I hope other credit unions learn from you that vendors do not have to be enemies - and that vendors learn that truly listening to customer needs and strategy is not a wasted effort.