When talking to executives inside space, the conversation generally commences with definitional matters: shall we be talking logistics here? Or contracts? Which hat should I wear?
But wait, how different are these roles? And the way different if it is?
I had been speaking recently having a salesman from the technology supplier who given to me his difficulty when controlling large organizations. He sells services of interest to both supply chain teams and Kogan Page Procurement Books. However, he only sells to 1 department. Then when the item is installed, the information is not given to the opposite.
Rarely does he target both simultaneously. In reality, it will require some years of these walls in the future down. Once the divisions are erased, he believes his technology may start to add real value to his client.
It’s a fascinating side-effect that a technology, sold to a single department can help bring the company together and challenge the silos under which it labors. My colleague believes that it’s his tools that permits the organization to perceive the similarities in roles and commence a wholly new method of working together. The first time they perceived their overlapping interests. Probably the distinction between ‘procurement’ and ‘supply chain’ is probably not so relevant in reality.
So what can these terms mean?
In most cases, supply chain means the post-contractual phase, that covers logistical issues and matters concerning suppliers in the lower tiers (the suppliers with the suppliers). Procurement can often be considered pre-contractual, regarding sourcing and negotiation.
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