When they talk to executives inside space, the conversation generally starts with definitional matters: am i talking logistics here? Or contracts? Which hat should I wear?
But how different are these roles? And exactly how different should they be?
I became speaking recently using a salesman from a technology supplier who distributed to me his difficulty when controlling large organizations. He sells services appealing to both logistics teams and Procurement Books. However, he only sells to one department. When the product or service is installed, the details are not distributed to one other.
Rarely does he industry to both simultaneously. In reality, it will require some time of those walls ahead down. As soon as the divisions are erased, he believes his technology can start to include real value to his client.
It’s a fascinating side-effect that a technology, sold to a single department can certainly help bring the corporation together and challenge the silos that it labors. My colleague believes it is his tools that enables the organization to perceive the similarities in roles to locate a a totally new way of working together. Initially they perceived their overlapping interests. Perhaps the distinction between ‘procurement’ and ‘supply chain’ may not be so relevant in reality.
So what can these terms mean?
Usually, logistics means the post-contractual phase, that covers logistical issues and matters in relation to suppliers in the lower tiers (the suppliers of the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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