Procurement Or Supply Chain? What are the differences? And may There Be A Difference?

When talking to executives from the space, the conversation generally starts off with definitional matters: are we talking logistics here? Or contracts? Which hat must i wear?


But how different are these roles? And the way different if it is?

I became speaking recently having a salesman coming from a technology supplier who shared with me his difficulty when controlling large organizations. He sells services appealing to both logistics teams and Cheap Procurement Books. However, he only sells to one department. So when the product is installed, the details are not shared with another.

Rarely does he industry to both simultaneously. Actually, it requires some time of those walls in the future down. After the divisions are erased, he believes his technology will start to incorporate real value to his client.

It’s an appealing side-effect which a technology, sold to a single department can actually help bring the organization together and challenge the silos this agreement it labors. My colleague believes that it’s his tools which allows this company to perceive the similarities in roles and commence a wholly new strategy for family interaction. The very first time they perceived their overlapping interests. Probably the difference between ‘procurement’ and ‘supply chain’ is probably not so relevant in reality.

What do these terms mean?

Usually, logistics means the post-contractual phase, that covers logistical issues and matters in relation to suppliers from the lower tiers (the suppliers from the suppliers). Procurement is usually considered pre-contractual, regarding sourcing and negotiation.
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