As companies struggle to improve customer value by evaluating the cost of their products, many companies are turning their attention to evaluating purchasing prices as a way to increase the value of their outputs to their clients. In the manufacturing sector, about 55% of sales is allocated to the purchase process needed to that particular output. In other words, for every dollar of revenue collected on goods and services sales, more than half returns to suppliers. Hence purchasing is undoubtedly an important topic when the goal is cost savings. Cost savings also includes managing costs through the design process and proactively reacting to any price variation.

However, this trend is not true for all types of industries or products. A good example of the opposite in the food industry. The majority of foods items are sold in a very competitive market, which produces an effect on the traditional food products to be seen as a commodity and affect the possible profit of the product. This effect would make any negotiation to obtain better prices harder, and negatively influence the profit. So, even thou evaluating the cost of making a product come in different forms; the approach is to bargain hard for price reductions.

It does not take much to conclude that the impact suppliers have on a company's total cost, goes hand-to-hand with their ability to maintain a healthy profit margins. The supply base is a key element of the supply chain. Additionally, the suppliers' capabilities can assist differentiate a producer's final output, increasing their value to the final customer.