Delivering Customer Value through Procurement and Strategic Sourcing: A Professional Guide to Creating A Sustainable Supply Network

Introduction

In 1983, McKinsey & Co. consultant Peter Kraljic published a pioneering paper¹ advocating the active engagement of purchasing in supply management and the expansion of procurement organization roles to a more systematic and strategic management of the supply base. Back then, purchasing was primarily a back office activity focused on communicating and expediting purchase orders.

Fast-forward to today, over 30 years later, and things have certainly progressed. With the support of outside consultants, post-procurement professionals have both formalized and centralized their strategies and processes, with particular focus on strategic sourcing methodologies to help rationalize the supply base. The bargaining power of the buyer has become ...