When talking to executives inside the space, the conversation generally commences with definitional matters: shall we be held talking logistics here? Or contracts? Which hat should I wear?
So how different are these roles? And the way different when they are?
I became speaking recently with a salesman from your technology supplier who given to me his difficulty when controlling large organizations. He sells services of interest to both supply chain teams and Procurement Books Online. However, he only sells to 1 department. So when the merchandise is installed, the information is not given to the other.
Rarely does he industry to both simultaneously. The truth is, it takes some time of these walls to come down. After the divisions are erased, he believes his technology will start to incorporate real value to his client.
It’s an interesting side-effect that a technology, sold one department can actually help bring the business together and challenge the silos that it labors. My colleague believes that it’s his tools which allows the organization to perceive the similarities in roles and an entirely new strategy for participating. Initially they perceived their overlapping interests. Maybe the among ‘procurement’ and ‘supply chain’ may not be so relevant in reality.
Exactly what do these terms mean?
Most of the time, supply chain refers to the post-contractual phase, that covers logistical issues and matters relating to suppliers in the lower tiers (the suppliers of the suppliers). Procurement is often considered pre-contractual, regarding sourcing and negotiation.
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