Opportunity cost, that fundamental principle of economics, has a lot to answer for when you get down to how one business thinks about the others around it.
On the surface, the opportunity cost of buying something appears to be quite a simple equation, predicated on the least cost within a framework.
But this kind of thinking undermines every point of interaction between buyers and suppliers - it limits you to certain conversations and encouraging certain kinds of behavior that ultimately prevent your organization from getting the most from suppliers.
Does this mean its time for a new metric for supplier performance management?
Download this paper to learn how to create more business value by changing how you engage with your suppliers.