Procurement Or Supply Chain? What are the differences? And Should There Be considered a Difference?

When they talk to executives inside space, the conversation generally begins with definitional matters: shall we be held talking logistics here? Or contracts? Which hat do i need to wear?


But exactly how different are these roles? And how different should they be?

I had been speaking recently which has a salesman coming from a technology supplier who shared with me his difficulty when controling large organizations. He sells services of curiosity to both logistics teams and Procurement Books. However, he only sells to 1 department. So when the item is installed, the information is not shared with the opposite.

Rarely does he sell to both simultaneously. Actually, it requires some years because of these walls into the future down. After the divisions are erased, he believes his technology will start to incorporate real value to his client.

It’s a fascinating side-effect that the technology, sold one department can actually help bring the business together and challenge the silos under which it labors. My colleague believes that it must be his tools which allows this company to perceive the similarities in roles and initiate a wholly new method of working together. For the first time they perceived their overlapping interests. Maybe the distinction between ‘procurement’ and ‘supply chain’ may not be so relevant in practice.

What do these terms mean?

Generally speaking, logistics means post-contractual phase, that covers logistical issues and matters concerning suppliers inside the lower tiers (the suppliers with the suppliers). Procurement is frequently considered pre-contractual, regarding sourcing and negotiation.
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