What is the difference between procurement and logistics? (2024)

by Jabbar Sadique CPP, CPPM , Strategic Buyer , Maaden

Procurement is the act of acquiring, buying goods, services or works from an external source, often via a tendering or bid process.

Logistics is a part of supply chain that handles the transport of any material (raw material, finished product) across the supply chain

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You can say Logistics is the since of movement and part of Supply Chain, while procurement is capability and it’s also part of supply chain, logistics included at every part of supply chain & Procurements as well .

Will give you public and common example to understand it very well

When you are feeling hungry ,so you start to find inside you what’s you are craving for , so you want Pizza ex. Will check the prices & Quantity you need , the time you need it also , then when you select the restaurant you will dial the number and ask for your order . ( Till this point all is supply chain , as the desire /the capability / the sourcing / the selection/ the order )when they send you the order , then you receive it ,and pay for it, and even if there is any remaining food the best way you will stock it or through it out ( all of this part is logistics ) .

Hope this part could explain you clearly the different.

Thanks

Upvote (1)

Actually, no differences between them!

Procurement and Logistics are partsfrom supply chain field ..... They are connected in administrations and operations works.

Procurement is the way how to purchase something by finding it with the best terms and good services.

Logistics is mainly details of operations before, within and after finalize the contracts.

Finally, within your search you will have many of definitions, according to the business, but the core meaning same :)

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Thanks for your question,

Procurement is one of Logistics branchs

All of these have skills

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by Mohammed Qaisar I PMP I MCIPS I MBA , Group Procurement Manager (Civil) , Al Ghurair Construction LLC

Procurement is a formal process to obtain goods and services. It includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Logistics provides a way to transport things from one to another places.It is defined as a business planning framework for the management of material, service, information and capital flows.

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Procurement is the preparation, processing of a demand and receiving as well effecting payment,. it involves a number of activitives such as;

-planning the purchase

-standards determination

-drawing specifications

-selecting the right suppliers as per your specifications

-negotiations and this can be in terms of price, value addtion or time

-making the purchase

-contract adminstration

-inventory control and storage

- and lastly dispossal..

on the other hand logistics involves;

- organising movement or transportation of goods

- coordination storage or accomadtion of the goods

-

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by Syed Tariq Qamar Ali , Administration Assistant

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by Mary Hilton , Marketing Manager , GSDC

Hi,

Let us discuss the differences between logistics, procurement, and inventory management from the following points:

Logistics:

• Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.
• Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner.

Procurement

• Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process.
• When a government agency buys goods or services through this practice, it is referred to as public procurement.
• Procurement involves every activity involved in obtaining the goods and services a company needs to support its daily operations, including sourcing, negotiating terms, purchasing items, receiving and inspecting goods as necessary and keeping records of all the steps in the process.
• The procurement process generally involves a number of steps. The business identifies particular goods and/or services that it needs, sources the suppliers that will help the company reach its business objectives, negotiates terms and costs and then purchases and receives the relevant items.

If you're looking for better career I personally suggest to go for procurement professional certification programs

If you are wondering where to begin this journey? Then you should check the iso 22301 lead auditor certification online here

The GSDC certification bodies provide certified procurement professional certification online and it is valid and accepted globally.

To get certification in procurement you have to pass the procurement certification exam from GSDC Institution.

GSDC's procurement certification is aimed towards sharing a deep understanding of all the basic procurement professional certification .

The purpose of GSDC'sprocurement professional certificationqualification is to confirm that a candidate has sufficient knowledge and understanding of the benefits of procurement professional certification.

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by Zaferullah Sharief, PMP® , Project Manager , Huawei Technologies

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by Deleted user

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by Shabbir Hussain , General Accountant , Fiscal

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