To succeed in challenging times, CEOs must ensure supply continuity while managing costs, operating sustainably, and achieving breakthrough innovations. Profit from the Source provides CEOs with a blueprint to empower procurement functions, which will help these leaders extract maximum value from supplier relationships and generate profitable growth.
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.
Transform your business by putting suppliers at the core
By Christian Schuh, Wolfgang Schnellbächer, Alenka Triplat, and Daniel Weise
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Supply chain and procurement are too important to be relegated to corporate Siberia, explains Daniel Weise, author of the new book Profit from the Source and leader of BCG's global procurement business.
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How do companies elevate procurement from an administrative operation to a generator of strategic value? BCG's Wolfgang Schnellbächer discusses unlocking profit through digitization of the procurement function.
