A New Era of Innovation in Procurement Process
Firms that include their suppliers in the early stages of innovation projects seem to substantially outperform their peers that do not. Yet a large proportion of companies do not include suppliers in over 90% of their New Product Development projects.
Over the past decade we have seen a significant increase in turnover in procurement as companies focus on core capabilities and outsource others. This has increased the influence of the procurement function – typically controlling all spend one way or the other. At the same time, the nature of innovation – recognized by most successful companies as the key to sustainable growth – has evolved from a purely internal capability to something to be delivered in collaboration with the external network of supply partners.