When they talk to executives within the space, the conversation generally starts off with definitional matters: shall we be talking logistics here? Or contracts? Which hat do i need to wear?
So how different are these roles? And just how different should they be?
I used to be speaking recently using a salesman from the technology supplier who shared with me his difficulty when controling large organizations. He sells services appealing to both supply chain teams and Cheap Procurement Books. However, he only sells to at least one department. Then when the merchandise is installed, the information is not shared with another.
Rarely does he industry to both simultaneously. In fact, it will require some time of these walls ahead down. After the divisions are erased, he believes his technology will start to include real value to his client.
It’s a fascinating side-effect a technology, sold to a single department can in fact help bring the business together and challenge the silos under which it labors. My colleague believes it is his tools that permits the business to perceive the similarities in roles and commence a wholly new way of participating. The first time they perceived their overlapping interests. Possibly the difference between ‘procurement’ and ‘supply chain’ may not be so relevant in practice.
What can these terms mean?
Generally speaking, supply chain means the post-contractual phase, that covers logistical issues and matters relating to suppliers from the lower tiers (the suppliers from the suppliers). Procurement can often be considered pre-contractual, regarding sourcing and negotiation.
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