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Procurement Or Supply Chain? What are the differences? And really should There Be described as a Difference?

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


But exactly how different are these roles? And exactly how different when they are?

I was speaking recently with a salesman coming from a technology supplier who given to me his difficulty when controling large organizations. He sells services of interest to both supply chain teams and Kogan Page Procurement Books. However, he only sells to one department. So when the item is installed, the details are not given to the opposite.

Rarely does he target both simultaneously. The truth is, it requires some years of these walls in the future down. As soon as the divisions are erased, he believes his technology may start to include real value to his client.

It’s an appealing side-effect which a technology, sold to a single department can certainly help bring the company together and challenge the silos to which it labors. My colleague believes that it’s his tools that allows the organization to perceive the similarities in roles and commence an entirely new way of family interaction. Initially they perceived their overlapping interests. Probably the contrast between ‘procurement’ and ‘supply chain’ might not be so relevant in practice.

What can these terms mean?

Usually, supply chain refers to the post-contractual phase, that covers logistical issues and matters associated with suppliers inside the lower tiers (the suppliers from the suppliers). Procurement can often be considered pre-contractual, regarding sourcing and negotiation.
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