When they talk to executives inside the space, the conversation generally begins with definitional matters: are we talking logistics here? Or contracts? Which hat must i wear?
But how different are these roles? And how different when they are?
I had been speaking recently using a salesman from your technology supplier who said to me his difficulty in working with large organizations. He sells services of 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 said to the opposite.
Rarely does he industry to both simultaneously. Actually, it requires some years for these walls ahead down. As soon as the divisions are erased, he believes his technology can begin to incorporate real value to his client.
It’s a unique side-effect a technology, sold one department can in fact help bring the organization together and challenge the silos that it labors. My colleague believes it is his tools that permits the business to perceive the similarities in roles to locate a a completely new strategy for working together. The very first time they perceived their overlapping interests. Perhaps the among ‘procurement’ and ‘supply chain’ will not be so relevant used.
So what can these terms mean?
Most of the time, logistics means the post-contractual phase, that covers logistical issues and matters in relation to suppliers in the lower tiers (the suppliers in the suppliers). Procurement is usually considered pre-contractual, regarding sourcing and negotiation.
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