HistoryFifteen to twenty years ago, companies only had purchasing departments. The procurement function was treated more as a need or necessary evil. So when businesses purchased their goods and services, the main thing was to place a purchase order and have that item or services delivered. Not much thought has been given to how to leverage suppliers or put long-term contracts in place to protect both the company and the supplier. About ten or twelve years ago, companies started getting smarter and thinking that any good they purchased was unprofitable to have too many suppliers. They believed that they should have a limited number of suppliers and be able to manage it and understand what they were purchasing and how changes in the market affected what was purchased as well as the amount paid for what was purchased. Additionally, businesses should pay attention to how suppliers perform their tasks: are the suppliers best in class, do they provide good service, good cost, good quality, etc. ? These types of questions were at best part of the conversation in the shopping days. Some companies were pioneers and handled these considerations well, while others simply reduced orders just to complete the purchase. Many companies have begun to rethink their procurement procedures and consider the practical, logistical and tactical benefits of strategic sourcing. If I were to estimate the current volume of companies optimizing strategic sourcing, it would be a modest estimate of around 20 percent, while another 20 percent, although on the path to strategic sourcing, are not doing so. optimal leverage. .middle of paper......the process, then this business is not long for this world. But when suppliers share processes and functions with a business, whether good or bad, then the primary business benefits from the lessons learned and becomes wiser and stronger as a result. Ultimately, it is about the relationship – whether it is recognized as a strategic alliance or a partnership. Businesses rely on ethical behavior and transaction integrity to gain market advantage and growth, as well as the joy of doing business with a reliable and trustworthy supplier. is an essential element because companies consider suppliers as an integral part of their production, in particular; suppliers often represent 50 to 90 percent of the total cost base. Often, suppliers represent the largest share of not only the cost, but also the ability to provide goods and services to a primary company's customers.. (7:08).