Purchasing: A Competitive Weapon

In a modern, well‐managed firm, the purchasing function can and should contribute to the firm's competitive goals. This article discusses how purchasing can evolve into the role of a strategic contributor through four progressive stages. Through a series of in‐depth interviews, the authors discovered that merely doing a good job of purchasing does not make the purchasing function a strategic contributor. However, those purchasing departments that have evolved to become strategic contributors to the firm's competitive goals have found the professional and financial rewards to be substantial.