When conversing to executives inside the space, the conversation generally begins with definitional matters: am i talking logistics here? Or contracts? Which hat can i wear?
But how different are these roles? And the way different when they are?
I had been speaking recently using a salesman coming from a technology supplier who distributed to me his difficulty when controling large organizations. He sells services of curiosity to both supply chain teams and Buy Procurement Books. However, he only sells to 1 department. And when the item is installed, the details are not distributed to the other.
Rarely does he industry to both simultaneously. Actually, it takes some years for these walls to come down. When the divisions are erased, he believes his technology can start to provide real value to his client.
It’s a fascinating side-effect which a technology, sold one department can certainly help bring the company together and challenge the silos this agreement it labors. My colleague believes that it must be his tools that allows the business to perceive the similarities in roles and an entirely new way of family interaction. For the first time they perceived their overlapping interests. Possibly the contrast between ‘procurement’ and ‘supply chain’ will not be so relevant in reality.
So what can these terms mean?
Most of the time, supply chain means post-contractual phase, that covers logistical issues and matters in relation to suppliers within the lower tiers (the suppliers in the suppliers). Procurement is usually considered pre-contractual, regarding sourcing and negotiation.
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