Procurement's Best-Priced Deal May Stifle Innovation

Harvard Business Review

Procurement's people have to enjoy comparable recognition and rewards for making a new product or service profitable as for, say, successfully consolidating a supplier segment or driving cost out of an outsourcing deal. 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.