Procurement, purchasing and supply chain.
Procurement manages the commercial decisions and supplier relationships needed to obtain goods and services. Purchasing is the transactional work of ordering and receiving them. Supply chain management coordinates the wider flow of materials, information and products.
Procurement asks what the organisation needs, which supplier can deliver it and what commercial arrangement makes sense. Purchasing converts an authorised need into an order. Supply chain planning connects demand, inventory, production, logistics and delivery.
The boundaries vary between organisations. A useful operating model names the owner of each decision and handoff. A supplier choice, an order change and a delivery exception can involve all three teams without becoming the same job.
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Explore procurement’s supply-chain role
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