Managing Director & Senior Partner
To succeed in challenging times, CEOs must do the seemingly impossible: capture cost savings while achieving additional competitive advantages, including innovation, sustainability, and resilience. CEOs can do all of this by taking what may seem like a surprising step: empowering their procurement function to liberate new value from their top supplier relationships.
As Profit from the Source makes clear, suppliers and the procurement function are pivotal to a company’s future. CEOs who empower their chief procurement officer and procurement function can leap ahead of their rivals. By using savvy supplier relationship management to make the most of suppliers’ expertise and resources, procurement executives can contain costs, drive innovation, maximize product and service quality, meet ESG standards, accelerate the time to market, and strengthen supply chain resilience.
Profit from the Source provides CEOs with a blueprint for putting suppliers at the heart of their company and empowering the procurement function to extract the maximum value from them. The book identifies ten practical principles for how a CEO, the company, and the company’s ecosystem of suppliers must change in order to achieve ample bottom-line and top-line growth—as well as strategies for smarter supplier relationship management.
Capitalizing on the procurement function’s full potential pays huge dividends. BCG’s analysis shows that companies’ share price outperformed the market by more than 130% when procurement executives were on the leadership team as strategic decision makers, rather than mere instruction takers.
Most CEOs instruct their chief procurement officer to focus on reducing costs and supporting the corporate strategy. But the tactics described in Profit from the Source help CEOs break away from the pack by instructing their chief procurement officer to focus on generating profitable growth and shaping—rather than supporting—the corporate strategy.