When you first speak to executives within the space, the conversation generally begins with definitional matters: shall we be talking logistics here? Or contracts? Which hat must i wear?
But how different are these roles? And just how different if it is?
I became speaking recently with 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 supply chain teams and Cheap Procurement Books. However, he only sells to one department. So when the merchandise is installed, the information is not said to one other.
Rarely does he industry to both simultaneously. Actually, it requires some time of those walls in the future down. Once the divisions are erased, he believes his technology may start to include real value to his client.
It’s an interesting side-effect that the technology, sold to a single department can actually help bring the organization together and challenge the silos that it labors. My colleague believes that it is his tools that allows this company to perceive the similarities in roles and initiate a wholly new strategy for participating. For the first time they perceived their overlapping interests. Possibly the contrast between ‘procurement’ and ‘supply chain’ is probably not so relevant used.
What do these terms mean?
Usually, supply chain means the post-contractual phase, that covers logistical issues and matters relating to suppliers within the lower tiers (the suppliers from the suppliers). Procurement is frequently considered pre-contractual, regarding sourcing and negotiation.
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