Distinguishing Procurement from Supply Chain Management
Understanding the differences between procurement and supply chain management has significance for improving effectiveness and profitability. Even though these terms are commonly used synonymously, in the broader context of supply chain operations, they reflect distinct but related tasks. Getting the right supplies in the proper quantity and quality at the most competitive rate within the allotted time is the main objective of procurement. This function focuses on managing supplier relationships and ensuring that the organisation's purchasing needs are met efficiently. However, supply chain management includes a wider range of tasks that extend beyond purchasing. Planning, sourcing, creating, and delivering goods and services to clients are all included in this process. Supply chain management aims to maximise product movement from the point of origin to the point of consumption, emphasising effectiveness, economy, and client happiness. Numerous tasks, including predicting dem...