When you first speak to executives inside space, the conversation generally begins with definitional matters: shall we be talking logistics here? Or contracts? Which hat should I wear?

But wait, how different are these roles? And just how different should they be?

I used to be speaking recently having a salesman from your technology supplier who said to me his difficulty when controling large organizations. He sells services of great interest to both logistics teams and Procurement Books Online. However, he only sells to one department. When the item is installed, the details are not said to one other.

Rarely does he industry to both simultaneously. In reality, it requires some years of these walls ahead down. Once the divisions are erased, he believes his technology may start to add real value to his client.

It’s an interesting side-effect that the technology, sold one department can certainly help bring the business together and challenge the silos under which it labors. My colleague believes that it’s his tools that allows the organization to perceive the similarities in roles to locate a a wholly new method of family interaction. The first time they perceived their overlapping interests. Probably the contrast between ‘procurement’ and ‘supply chain’ is probably not so relevant used.

What do these terms mean?

Generally speaking, logistics means post-contractual phase, that covers logistical issues and matters relating to suppliers from the lower tiers (the suppliers of the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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