Rethinking Supplier Relationships in American Procurement
When I first started working in the US, a Chief Procurement Officer offered me a piece of advice that stuck with me. He said, “In America, we treat suppliers like an NFL team treats its players—we’ll invest in the best talent, but if they don’t hit their stats, we’ll cut them. Fast.”
At the time, it seemed like a pragmatic approach. Performance matters, and results should drive decisions. But as I’ve spent more time working with procurement teams across the US—and particularly as we run Voice of the Supplier programs that assess whether organisations are truly a customer of choice—this hard-edged mindset has revealed its limitations.
A Wide Bench of Suppliers – But at What Cost?
Historically, US organisations haven’t felt the need to build deep, long-term supplier relationships. With large, competitive supply markets and a culture of performance-driven contracts, there has always been another supplier ready to take the field. This dynamic has reduced the perceived value of being a “customer of choice.” Why invest in softer relationship elements when switching costs are low and options are abundant?
But that assumption is now being challenged on several fronts.
Why the Model is Changing
In our recent Voice of the Supplier surveys across North America, a common theme has emerged: suppliers are growing more selective. Talent shortages, inflation, constrained capacity, and ESG expectations have fundamentally altered the balance of power in many industries. Suppliers no longer see all clients as equal. They prioritise those who are easier to work with, who collaborate openly, who share risk—and who treat them like long-term partners rather than disposable assets.
What’s more, the financial impact of supplier churn is becoming clearer. Switching suppliers might feel like a win in the short term, but it often creates downstream costs in onboarding, operational misalignment, and inconsistent delivery.
In short, being a tough customer might win you this quarter. But it could cost you the next five years.
Performance and Partnership
This doesn’t mean American procurement leaders should drop their focus on performance. High standards remain essential. But there’s growing recognition that performance and partnership aren’t mutually exclusive. In fact, the best results often come from suppliers who feel invested in the relationship—who want to win with you, not just for you.
What we’re seeing from more mature procurement organisations in the US is a shift: moving from purely transactional management to more strategic supplier relationships, built on mutual accountability and trust.
Three Shifts to Make
If you’re in a US-based procurement team, here are three ways to start evolving beyond the “cut-and-replace” mindset:
Run a Voice of the Supplier exercise
Understand how your suppliers actually perceive you. Are you easy to work with? Do you communicate clearly? Do they see you as a long-term partner—or just another client with a contract? These insights can shape how you improve and where to invest your time.Segment your suppliers
Not all suppliers need deep engagement—but your most critical ones do. Segment your supply base by risk, strategic value, innovation potential and other criteria. Refer to our segmentation whitepaper. Then treat your top-tier suppliers like business partners, not hired help.Shift from compliance to collaboration
Move beyond just measuring if suppliers are hitting KPIs. Work with them to understand why performance is lagging, and what you can do together to improve. You’ll be surprised how often small behavioural shifts on your side lead to major improvements on theirs.
The Future of Supplier Management in the US
There’s still a strong performance culture in American procurement—and that’s not a bad thing. But it’s time to balance the scoreboard with relationship strength. Being a customer of choice doesn’t mean accepting poor performance. It means understanding that performance is a shared responsibility, and long-term success comes from partnership, not just procurement pressure.
The best teams don’t just hire the best players—they coach them, invest in them, and win with them.
It’s time procurement did the same.
Want to know how your suppliers really see you?
Run a Voice of the Supplier assessment to understand where you stand as a customer. Gain clear, actionable insights on how to strengthen collaboration, reduce churn, and become a partner your suppliers choose to prioritise.
