To retain international competitiveness, many companies are currently facing an enormous pressure to innovate. To withstand this pressure, organizations are increasingly using external sources of innovation. Therefore the importance of networking with other firms within the supply chain has risen sharply in recent years. Regarding this topic, the key role of purchasing and procurement often is neglected in literature and practice. However, this function represents an interface to the procurement market and therefore provides the possibility to directly integrate suppliers and their know-how into development processes of the company. Thus, an extension of the classical concept of purchasing contributes to the innovative force of a company. Subject of this thesis is to discuss the influence of the procurement function on the innovative strength of a company. Therefore, the first two chapters are devoted to the extension of the procurement function, collaboration with suppliers, as well as the strengthening of innovation through the integration of external organizations. The described theoretical context is then confirmed by showing a concrete, practical example. The empirical part of the thesis describes a recent initiative at Magna Steyr, whose influence on innovation and integration of suppliers is investigated. Based on a survey of involved parties and the opinion of internal company experts, an instrument to measure the strategic impact of the initiative is developed. Result of the thesis is significant data, which confirms the positive impact of the initiative at Magna Steyr on supplier integration and innovation. Thus, the influence of the procurement function to strategic business objectives is clearly visible. Additionally, specific recommendations for future actions within the initiative are formulated to further improve its positive impact.