Is it a supply chain or a procurement problem?
With supply chain woes reverberating around the world, this article reviews some of the approaches you can take to reduce risk and keep your goods on the move. Although often used interchangeably, supply chain, procurement and sourcing refer to different aspects of the same part of business – much the way that the legs and seat are all components of a chair.
Procurement is the process of getting the goods and materials companies need to manufacture finished goods, while supply chain management is the process of transforming those goods into products and distributing them to customers as efficiently as possible.
Procurement relies on a robust sourcing strategy, as well as seamless logistics orchestration to get materials through the manufacturing process as quickly and cost effectively as possible.
So let’s take a look at what is happening in the world of procurement - post-pandemic and in a geopolitically challenging environment - and dive into some ways you can mitigate supply risks and future-proof the availability of materials to keep your supply chain moving.