Procurement's Best-Priced Deal May Stifle Innovation
Harvard Business Review
DECEMBER 1, 2011
Procurement couldn't help but manage its selection criteria differently if it operationally lived with the knowledge that getting the best-priced deal was no longer good enough. 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. The real-world drawback with this declaration of innovation interdependence is neither cultural nor operational.