When they talk to executives inside the space, the conversation generally starts with definitional matters: are we talking logistics here? Or contracts? Which hat must i wear?
So how different are these roles? And the way different if it is?
I had been speaking recently which has a salesman from the technology supplier who given to me his difficulty when controling large organizations. He sells services appealing to both supply chain teams and Cheap Procurement Books. However, he only sells to one department. So when the product or service is installed, the information is not given to the other.
Rarely does he target both simultaneously. In fact, it takes some years for these walls ahead down. When the divisions are erased, he believes his technology may start to incorporate real value to his client.
It’s a unique side-effect a technology, sold one department can in fact help bring the business together and challenge the silos that it labors. My colleague believes that it is his tools that allows the business to perceive the similarities in roles and commence a wholly new method of working together. For the first time they perceived their overlapping interests. Perhaps the contrast between ‘procurement’ and ‘supply chain’ is probably not so relevant utilized.
What do these terms mean?
Most of the time, supply chain means post-contractual phase, that covers logistical issues and matters relating to suppliers inside the lower tiers (the suppliers from the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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