When talking to executives from the space, the conversation generally commences with definitional matters: am i talking logistics here? Or contracts? Which hat do i need to wear?
So how different are these roles? And how different should they be?
I had been speaking recently having a salesman from your technology supplier who distributed to me his difficulty when controlling large organizations. He sells services of great interest to both logistics teams and Kogan Page Procurement Books. However, he only sells to one department. And when the merchandise is installed, the details are not distributed to one other.
Rarely does he industry to both simultaneously. In reality, it takes some years of those walls ahead 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 a technology, sold to a single department can in fact help bring the organization together and challenge the silos that it labors. My colleague believes that it is his tools that permits this company to perceive the similarities in roles and commence a totally new strategy for participating. For the first time they perceived their overlapping interests. Probably the contrast between ‘procurement’ and ‘supply chain’ may not be so relevant used.
Exactly what do these terms mean?
In most cases, logistics refers to the post-contractual phase, that covers logistical issues and matters concerning suppliers in the lower tiers (the suppliers from the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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