What’s in a name? It depends on who you’re talking to and what you’re talking about. Jonathan Webb writes on the topic of Procurement vs Supply Chain for Forbes.com in his article Procurement Or Supply Chain? What’s The Difference? And Should There Be A Difference?
Webb says, “When talking to executives within the space, the conversation generally begins with definitional matters: are we talking logistics here? Or contracts?”
Are the roles different? How so? What do these terms mean?
“Generally speaking, 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,” explains Webb. He goes on to discuss how the difference between these two practices has changed over the years.
By: Tara Ann Neville