Procurement's Best-Priced Deal May Stifle Innovation

Harvard Business Review

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.