Supply Chain Overview
The Marathon Petroleum Company LP (Marathon) Supply Chain organization continually strives to support business objectives and drive value creation for our shareholders. Supply chain employs rigorous standards and procedures which serve as a framework for executing innovative category management, sourcing, and contracting strategies. Marathon is committed to running an integrated and strategic supply chain that collaborates with our stakeholders to understand business needs, capitalizes on marketplace opportunities, focuses on total cost of ownership, and develops innovative solutions which demonstrate measurable value.
The Marathon Petroleum Company LP (Marathon) Supply Chain organization contributes to the company’s sustainable development by striving to continuously improve our performance as it relates to environmental stewardship, social responsibility, and long-term economic growth while ensuring we comply with all domestic and international laws. Our commitment to sustainability is integrated into our strategic planning, daily operations, and key processes. Good governance, personal and operational safety, and responsible business practices are embedded within our commitment to sustainability in all we do.
Marathon Supply Chain believes that building strong relationships with our Suppliers, consultants and contract workers (collectively, “Suppliers”) is essential to running our business. Marathon seeks to work with Suppliers that value sustainability and contribute to sustainable development. We expect our Suppliers to prioritize environmental, social, and economic responsibility in their daily interactions. We expect our Suppliers to adhere to Marathon’s Supplier Code of Conduct and to comply with environmental, social and governance clauses in their contracts with Marathon. Click here to download the Supplier Code of Conduct.
By operating in a sustainable way, Marathon and our Suppliers can ensure better working conditions for individuals and promote long-term economic growth in the local economies and communities in which we operate while minimizing the impact we have on the environment.
Supplier Expectations Regarding Sustainability
- Safety – Marathon is committed to creating a safe work environment for our employees and Suppliers. We continually focus on improving our safety management systems, compliance programs, and overall safety culture with a goal of having an accident-free, incident-free workplace. We expect our Suppliers to align with our safety values, have robust safety programs, promote a strong safety culture, and not only adhere to, but also be an advocate of Marathon’s safety processes and culture while working on our behalf.
- Human Rights – Marathon respects the human, cultural and legal rights of all individuals and communities, and promotes the goals and principles of the United Nations Declaration on Human Rights. These commitments extend to the fair treatment and meaningful involvement of all people, including indigenous people, regardless of race, color, sex, gender, national origin, or any other status protected by law. We expect our Suppliers to align with our human rights values, comply with laws and regulations related to human rights, and promote positive practices that support human rights for all individuals.
- Diversity – Partnering with diverse Suppliers, including local suppliers and businesses owned and operated by people who are minorities, women, veterans, physically challenged and/or disadvantaged, attracts qualified suppliers, stimulates local economic development, drives innovation, and creates lasting social benefits in the communities in which we live and work. Supplier diversity is a proactive initiative that provides potentially under-represented businesses equal opportunities to partner with Marathon. We expect our Suppliers to align with our diversity values, have a Supplier diversity program, and encourage engagement with diverse Suppliers.
- Ethics and Compliance with Laws – Marathon complies with all domestic and international laws where we operate. Our employees perform their daily work while upholding the highest standards of business ethics and integrity in a manner consistent with Marathon’s Code of Business Conduct. We expect our Suppliers to act with integrity, conduct business in an ethical manner, comply with all laws and regulations applicable to the delivery of goods and services being provided, and adhere the standards set forth in Marathon’s Supplier Code of Conduct.
- Environmental Stewardship – Marathon is committed to minimizing our impact on the environment and complying with applicable environmental laws and regulations. We strive to utilize energy and natural resources efficiently, continuously improve environmental performance, and reduce and prevent waste, emissions, and releases. Marathon expects our Suppliers to align with our environmental stewardship values and strive to minimize the environmental impact of their operations.
- Long-Term Economic Growth – Marathon believes supporting and striving to improve key sustainability factors such as social responsibility and environmental stewardship will promote long-term economic growth in the economies and communities where we operate. We expect our Suppliers to share our same sustainability values and strive to promote long-term economic growth in the communities in which they operate.
Statement from Michael Gebhardt, VP Supply Chain, Regarding Sustainability
“Our approach to sustainability is not only defined by the work we safely execute while complying with all laws and regulations, but also by our drive to meet or exceed our own rigorous expectations to improve the environment and communities in which we operate. Supply Chain’s commitment to sustainability is central to the long-term development of the business and is key to creating value for our stakeholders.”
Recognizing Outstanding Supplier Performance
Suppliers who positively impact our business are honored at our annual Supplier Recognition Awards (SRA). Suppliers are nominated by Marathon employees for awards across five categories that align with our core values. The 2020 award categories and related nomination criteria are as follows:
Sustainability Partnership - We view sustainability as our environmental, social and economic responsibility, and we consider sustainability a fundamental process of shared-value creation for all our stakeholders. Good governance, personal and operational safety, and responsible business practices are embedded within our commitment to sustainability in all we do. The nominee prioritizes environmental, social and economic responsibility in their daily interactions. They work hard to make an impact every chance they get and continuously improve and reduce their footprint.
Diverse Supplier of the Year - The diverse supplier of the year embodies the award categories and helps to propel our teams to be the best. This supplier is a member of our diverse supplier group and has become an outstanding partner to our business. Our partnership is valued greatly, and we know we can rely on them to deliver results.
Innovative Partnership - By harnessing the power of technology, challenging ourselves to improve, and committing to innovation, we sit firmly on the leading edge, adapting to changes in the market, anticipating trends and continuing to meet our customers’ evolving needs with high-value solutions. The nominee for this award partners with us to push ourselves to the next level. They are always looking for a new way to achieve greatness, while using creative and innovative methods to create value and improve our competitive position.
Exceptional Partnership - Our operational capability is a driving factor for how we execute and is a foundation for our continued success. Superior Execution is a principle that applies not only to our operating assets but to everyone throughout our organization. The nominee for this award understands what it means to be exceptional. They honor our commitment to superior execution as a leader in the industry. They also partner with us to exceed industry standards in a safe, reliable, compliant and environmentally sound way.
Supplier of the Year - The supplier of the year embodies multiple award categories and helps to propel our teams to be the best. Our partnership is valued greatly, and we know we can rely on them to deliver results.
Marathon Supply Chain believes that building strong relationships with our vendors, suppliers, and contractors (collectively “suppliers”) is essential to running our business. Marathon seeks to work with suppliers that have the following values, qualities, and capabilities.
- Possess robust safety programs, have a strong safety culture, and are committed to not only adhering to, but also to being an advocate of Marathon’s safety processes and culture while working on our behalf
- Act with integrity, conduct business in an ethical manner, obey laws, and adhere to Marathon’s Supplier Code of Conduct
- Strive to improve key sustainability factors such as environmental stewardship and social responsibility which promote long-term economic growth in local economies and communities
- Encourage positive practices that support diversity and promote human rights for all individuals
- Demonstrate strong financial health and viability
- Possess a strong understanding of Marathon’s business and value chain
- Provide value added capabilities, innovation, and a competitive advantage for Marathon
- Protect confidential information
- Comply with contractual obligations
Partnering with diverse businesses, including local suppliers, attracts qualified goods and services providers, stimulates local economic development, drives innovation, and creates lasting social benefits in the communities in which we live and work. Marathon takes a proactive approach to supplier diversity and aims to increase the number of diverse businesses in our supply chain by providing potentially under-represented companies an equal opportunity to become a trusted business partner.
Click here to see the Diverse Supplier Policy.
Diverse Business Defined
A diverse business is any company in which at least 51% of the ownership is of a designated diverse background such as women, minorities, LGBTQ, veterans, physically challenged, and/or disadvantaged. In addition, companies designated as small businesses as well as companies in historically underutilized business zones (i.e., HUBZone business) also qualify as a diverse business.
Diverse Business Certifications Requirements
In order for a company to qualify as a diverse business, the company must be certified as a minority-owned business (MBE), woman-owned business (WBE), or small business enterprise (SBE) by one of the following organizations.
- An Affiliate of the National Minority Supplier Development Council (NMSDC)
- An Affiliate of the Women's Business Enterprise National Council (WBENC)
- National Women Business Owners Corporation (NWBOC)
- United States Department of Veterans Affairs (VetBiz)
- Small Business Administration (SBA)
- National LGBT Chamber of Commerce (NGLCC)