When they talk to executives inside space, the conversation generally starts with definitional matters: shall we be talking logistics here? Or contracts? Which hat must i wear?
But exactly how different are these roles? And exactly how different when they are?
I had been speaking recently which has a salesman from a technology supplier who said to me his difficulty in working with large organizations. He sells services of great interest to both logistics teams and Procurement Books Online. However, he only sells to a single department. So when the product is installed, the information is not said to the other.
Rarely does he industry to both simultaneously. In reality, it will take some time of these walls ahead down. As soon as the divisions are erased, he believes his technology can begin to add real value to his client.
It’s a fascinating side-effect a technology, sold to a single department can actually help bring the corporation together and challenge the silos this agreement it labors. My colleague believes it is his tools that allows the organization to perceive the similarities in roles and an entirely new strategy for participating. Initially they perceived their overlapping interests. Perhaps the distinction between ‘procurement’ and ‘supply chain’ might not be so relevant used.
Exactly what do these terms mean?
Most of the time, logistics means post-contractual phase, that covers logistical issues and matters in relation to suppliers within the lower tiers (the suppliers from the suppliers). Procurement is usually considered pre-contractual, regarding sourcing and negotiation.
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