Supply Chain Management

Contractors, suppliers and our entire value chain are vital to Crestwood’s success. Our contractors serve as an extension of our team and are integral to how we operationalize sustainability across our business. Supply chain management is a key ESG performance component in our next three-year sustainability strategy and across our value chain, amplifying the impact of our sustainability efforts and the value we bring to our stakeholders.

Our Approach

Our Board of Directors and Sustainability Committee review Crestwood’s supply chain management performance, including our approach to enhancing supplier diversity on an annual basis. Our Supply Chain Management (SCM) department leads activities with a focus on leveraging supply markets and providing efficient services across Crestwood’s business.

Supplier and Contractor Expectations

Primary contractors and subcontractors working on Crestwood sites are held accountable to applicable federal and state regulations and specific Crestwood requirements. Our Supplier Code of Conduct (the Code) sets forth Crestwood’s requirements and expectations for our suppliers and contractors. Crestwood’s SCM team works with selected vendors and suppliers to also acknowledge and commit to our Code of Business Ethics and Conduct prior to authorizing services or performing work. We use a Contractor Management System to distribute, track and assign deadlines for suppliers and contractors to acknowledge the Codes. Crestwood does not engage in business with contractors or suppliers that fail to complete this acknowledgement and commitment. 

Crestwood’s behavioral expectations and dynamic culture is based on the belief that every individual deserves to be treated fairly, honestly and with dignity. We expect our suppliers and contractors to adhere to applicable child labor, wage, labor, safety, human rights and environmental laws. In addition to the Code, we require suppliers and contractors to review and acknowledge additional policy documents that complement the areas discussed in the Code. 

Supplier Code of Conduct Area Other Applicable Policy Documents
Health, Safety and Environment
Employment Practices and Human Rights
Responsible Business Ethics
Social Performance, Supplier Diversity and Indigenous Peoples

Selecting Trusted Partners

We consider ESG performance a critical factor when selecting suppliers and contractors. Our supplier and contractor management process does not end when the contract is signed. We have regular touch points with our contractors to provide opportunities for continuous improvement. 

Supplier Diversity

Supplier diversity is also integral to Crestwood’s procurement strategy and our culture. We are committed to advancing the development of diverse supplier relationships, including women-, minority-, veteran- and Indigenous-owned businesses across the United States. We also expect our business partners to use and develop diverse suppliers of their own while performing work with or on behalf of Crestwood. 

3 of our top 10 growth capital suppliers – AR Foreman, AH Inc. and Gemini Resources – are minority owned

External Voice

AR Foreman has worked with Crestwood since 2017 on Delaware Basin projects, including the recent construction of their Willow Lake Compressor Station and the Herradura Compressor Station. We share their commitment to safety and appreciate their proactive efforts to advancing supplier diversity in the communities in which they live and operate. We also believe that it takes continued effort between companies that diligently strive to build sustainable operations that are critical to success in our industry.

Anthony Foreman
Owner, AR Foreman Construction LLC

In 2021, we extended our supplier diversity performance gains from 2020 and further solidified our approach to supplier diversity considerations and selections. These improvements enable us to verify that relevant, potential suppliers have a fair and equal opportunity to compete for business within our supply chain process. Further, this builds upon our commitment to championing Diversity, Equity and Inclusion (DEI) in everything that we do.

Please see the Diversity, Equity and Inclusion page to learn more about how Crestwood supports DEI in carrying out our operations.

Supplier Diversity Spend

At Crestwood, we believe that an inclusive, diverse supplier community promotes innovation through the introduction of new products, services and solutions and is essential to economic vitality. We are proud to include and partner with diverse suppliers and remain committed to identifying new opportunities to increase our diverse supplier spend. In 2021, we had a total diversity spend of $19,392,014, representing 21% of our total supplier spend. To continue delivering on this strategy, we require at least one diverse supplier in growth capital RFPs over $100,000. 

In 2021, we had a total diversity spend of $19,392,014, representing 21% of our total supplier spend

As we advance our SCM management approach, we continue to collect and report data for our spend with diverse suppliers on an annual basis, including key information and categorizations. For full data review, please see our Performance Data Table.

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Working with Indigenous Suppliers

Crestwood partners with Indigenous-owned companies for work conducted on the Fort Berthold Indian Reservation (FBIR) through the Tribal Employment Rights Office (TERO). TERO requires all companies conducting work on the reservation to partner with Tier 1 Contractors. We adhere to this mandate while reaching a step further, giving preference to qualified, self-performing Indigenous-owned businesses. In 2021, over 50 percent of all Crestwood's diversity spend was with Indigenous-owned suppliers. 

We are committed to working with Indigenous suppliers and contractors and plan to incorporate feedback to assist with capacity building and training initiatives that aid in delivering on Crestwood and industry expectations.

Please see the Indigenous Relations page to learn more about Crestwood’s approach to cultural awareness and Indigenous relations.

Data Visualization

Crestwood has made key strides in the capture and reporting of our supplier and supplier diversity data. In 2021, we reviewed our collective data to confirm associated information and spend were accurately captured. Upon review and confirmation of accuracy, completeness and consistency, we input the data into Microsoft Power BI. This provides clear and interactive insights regarding all our suppliers and is updated daily. As a result, we have strengthened our decision making with respect to procurement selections and have increased our inclusivity of diverse suppliers.

Reducing Supply Chain Disruption

With supply chain disruption becoming a growing issue, we have proactively taken measures to reduce those risks. In 2022, we plan to implement a standardization effort in our procurement process regarding equipment that we use to create efficiencies. This includes shifting to bulk purchasing, wherever possible, to maximize benefits in ordering and preventing potential delays and incurred costs related to obtaining long lead items. 

Crestwood Voice

In 2021, we worked with other midstream companies and surplus wholesalers to purchase steel line pipe far below market prices. As a result, we were able to lock-in prices and prevent procurement delays, ultimately improving efficiency and reducing supply chain risks.

Greg Houston
Senior Director, Cost Leadership and Environmental Services

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Looking Ahead

Doing business with suppliers and contractors who demonstrate high ethical business standards and share our commitment to sustainability is important to us. In 2022, we plan to: