How to create value by collaborating inside and outside
the organization. Today, reducing costs is no longer
enough. Companies want value, and they want their chief
procurement officers (CPOs) to deliver it. CPOs can get
the job done by first identifying and then collaborating
with their key suppliers. Over the past 20 years, most
companies have used strategic sourcing to restructure
their supply bases and reduce costs. At times, the
approach not only required confrontational relationships
with suppliers—deemed necessary collateral damage in the
quest for lower costs—but also enabled some suppliers to
become so embedded that they were immune to future
competitive sourcing efforts.