Most companies are already pursuing a variety of initiatives that constitute today's conventional wisdom for improving supply management. They are optimizing costs through expanded (often global) sourcing. They are consolidating suppliers of high-value products and services, and they are linking up tightly with those that remain. The challenge is to extend and deepen those capabilities to catch the next wave of supply-side competitive advantage. The experience of a handful of world-class supply leaders suggests at least three critical imperatives: (1) Practice strategic supply management, (2) Think cross-functionally—and outside your four walls, and (3) View supply management as an agent of innovation.