Procurement's Best-Priced Deal May Stifle Innovation

Harvard Business Review

In other words, innovation occurs when we bypass or disintermediate procurement. In the same way that acquisitive organizations have become more savvy about TCO — Total Cost of Ownership — they should rethink TCP: the Total Cost of Procurement. It's leadership. But, alas, the innovation disintermediation and disempowerment provoked by procurers with their eyes a little too focused on the bottom line have demanded this fundamental shift.