Procurement Or Supply Chain? What’s The Difference? And will There Be A Difference?

When conversing to executives within the space, the conversation generally commences with definitional matters: are we talking logistics here? Or contracts? Which hat do i need to wear?


But wait, how different are these roles? And the way different when they are?

I used to be speaking recently which has a salesman from a technology supplier who given 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 1 department. When the product is installed, the details are not given to one other.

Rarely does he sell to both simultaneously. The truth is, it will take some years because of these walls ahead down. Once the divisions are erased, he believes his technology can start to add real value to his client.

It’s a fascinating side-effect that the technology, sold one department can in fact help bring the corporation together and challenge the silos under which it labors. My colleague believes that it is his tools that allows the business to perceive the similarities in roles to locate a a totally new method of participating. The very first time they perceived their overlapping interests. Possibly the distinction between ‘procurement’ and ‘supply chain’ will not be so relevant in reality.

So what can these terms mean?

In most cases, logistics means post-contractual phase, that covers logistical issues and matters associated with suppliers within the lower tiers (the suppliers with the suppliers). Procurement is frequently considered pre-contractual, regarding sourcing and negotiation.
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