This practice guide on procurement strategy brings together methods and tools used by global purchasers across different industries. The authors lay major focus on the themes of global sourcing, risk management, and the dynamic topic of negotiation strategy. The authors present their...

We analyze the problem of a buyer who purchases a long-term project from one of several suppliers. A changing state of the world influences the costs of the suppliers. Complete contracts conditioning on all future realizations of the state are infeasible. We show that contractual incompleteness...

Market share contracts, a form of loyalty discounts, where the discount is contingent on the buyer meeting or exceeding a target share of total procurement, are common in many B2B settings. We study the impact of such contracts on demand allocation, prices, and welfare in a setting where a...