Procurement Or Supply Chain? What are the differences? And really should There Be described as a Difference?

When talking to executives from the space, the conversation generally starts with definitional matters: am i talking logistics here? Or contracts? Which hat can i wear?


But exactly how different are these roles? And just how different if it is?

I used to be speaking recently which has a salesman from a technology supplier who distributed to me his difficulty when controlling large organizations. He sells services of curiosity to both logistics teams and Kogan Page Procurement Books. However, he only sells to 1 department. So when the item is installed, the details are not distributed to one other.

Rarely does he industry to both simultaneously. Actually, it takes some years of these walls in the future down. As soon as the divisions are erased, he believes his technology may start to add real value to his client.

It’s a unique side-effect which a technology, sold one department can in fact help bring the organization together and challenge the silos under which it labors. My colleague believes that it must be his tools that allows the corporation to perceive the similarities in roles and a wholly new way of working together. For the first time they perceived their overlapping interests. Maybe the distinction between ‘procurement’ and ‘supply chain’ may not be so relevant in reality.

What do these terms mean?

In most cases, logistics refers back to the post-contractual phase, that covers logistical issues and matters associated with suppliers inside the lower tiers (the suppliers of the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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