If companies involve suppliers as early as the product development phase, they can ensure more innovations and lower procurement costs. This is result of a study “Innovations from and with suppliers” by the Bundesverband Materialwirtschaft, Einkauf und Logistik (BME, or German Association Materials Management Purchasing and Logistics). To allow suppliers to participate effectively in development projects the purchasing department also has to be represented in the development team, according to an additional result.

Researchers believe the most effective approach is cooperation, not only between the various departments in a company in the form of “procurement engineering”, but also with suppliers. Merely waiting for external impulses promised little success.