Procurement's Best-Priced Deal May Stifle Innovation

Harvard Business Review

When I politely point out procurement's role in selecting, shaping and paying for partnerships, the answer I get astonishes: We can reimburse our suppliers and partners out of another budget. Even worse, when suppliers seized by a great idea toil overnight and weekends to present it, procurement argues that this wasn't part of the budget and behaves (quite reasonably) as if it is going the extra mile to compensate the supplier. It's leadership.