Competition today is not between companies; it is between supply chains.
Like Darden, most firms spend a huge portion of their sales dollars on purchases. Because an increasing percentage of an organization’s costs are determined by purchasing, relationships with suppliers are increasingly integrated and long term. Combined efforts that improve innovation, speed design, and reduce costs are common. Such efforts, when part of a corporate-wide strategy, can dramatically improve all partners’ competitiveness. This integrated focus places added emphasis on managing supplier relationships.