The Key Differences Between Procurement And Supply Chain Management

Procurement management and supply chain management at first glance look similar, they both follow similar processes, but there are distinctive differences in both aspects. Both processes work hand in hand to ensure on time delivery of services in any organisation. One cannot function without the other, but misinterpreting them as one and the same could lead to disasters affecting the bottom line of any organisation.

There are many differences between procurement management and supply chain management, before one can differentiate one must understand the meaning of each aspect.

Procurement management is about the acquiring of resources that any organisation need, it is based on finding suppliers that offer both quantity and quality in resources that are cost-effective for the organisation.

Procurement management is about sourcing resources and ensuring that all orders are completed and accurate, it is also about contract management and negotiating prices with suppliers to ensure on time delivery of required resources.

Procurement management is about maintaining and enhancing the infrastructure of an organisation through sourcing reliable resources that the organisation needs in all the departments. It has to ensure that the required resources are ordered and delivered on time.

Supply chain management is the processes of utilizing resources and the necessary departments to ensure the completion of services and that they are delivered to the customers on time and in great quality. It is about managing all the factors involved to ensure that the end product is of both quality and meets the requirements of all customers, including ones sourced through marketing.

Supply chain management is about optimizing all the processes to fast track the delivery and quality checking of completed services. It is based on utilizing raw materials and transforming them into the final product ready for the market.

Procurement management and supply chain management are different aspects in an organisation, but they work together to ensure on time completion of services and products for customers and end users.

There is a difference between procurement management and supply chain management, it is that procurement management is about the acquiring of resources and supplies that an organisation needs to ensure smooth processes and running in an organisation.

Whereas, supply chain management is about utilizing the supplies that have been procured to ensure transformation and completion of products and services that are then delivered to end users and customers.

Another difference is that procurement management is focussed on the input into an organisation, where supply chain management is focussed on the output and the delivery of the desired products and services in any organisation.

Procurement management supports production in an organisation through the sourcing of necessary resources, where supply chain management is focussed on the production and then distribution of the final products to the target market.

Procurement management and supply chain management are on different aspects of the production line in any organisation, they work well together, but there are differences. By focussing on both strong points and aspects in procurement management and supply chain management, an organisation can utilize the benefits in growing the organisation and ensure continuity for the future.