The logistics & procurement category clearly consists out of two separate subjects which should be defined in order to show how they are connected. The term logistics originates from the Greek word logistiki which stands for accounting and the organization of finances. Furthermore it is said that the term formed in ancient times linked to the military which needed to supply itself with goods. Nowadays the term logistics is most commonly associated with Supply Chain Management (SCM), the transport of goods, inventory management and warehouse management. In short, it describes what happens between the point of origin of a product/ good and the point of consumption of the product/ good, meaning logistic management is much more than simply the distance covered by the truck driver or the distribution of a product.
Procurement, on the other hand, usually starts before logistics come into play, i.e. at the stage of acquiring goods. The term procurement describes the attempt to acquire goods according to customers’ preferences in terms of quantity, quality, time, location and costs. In short it is highly concerned with purchasing management as well as contract management when it comes to agreements on e.g. prices, quantity and time of delivery. Many procurement businesses make use of a practice called global sourcing in order to acquire the best possible offers independent of the country of origin. As you might have seen by now these two subjects are definitely connected to one another and create a rather complex category, which is why you should browse through the logistics & procurement training courses on Springest to gain more insider knowledge.