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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
Procurement deals with buying the materials or works from there sources.
Logistics is a major part of the supply chain that deals with transport of any material.
Procurement is about purchasing or acquiring goods or services whereas logisitics is focused on the cost, efficiency and other factors in the organization.
The difference between Logistice and Procurement are:-
Procument is the purchase of goods and services.
Logisticsis is the movement, storage, purchased and operations of goods and services
Procurement handles the job to find a suitable and competitive supplier in terms of cost, quality, and suitability of our requirement.
Logistics will handle this shipment pickup or further followups regarding the delivery of the material. They have to take care of the necessary shipment till it reaches our client.
Procurement is the act of acquiring goods or services to satisfy the needs of requestors whereas logistics is the process of transportation within supply chain of those goods (either import or export or in country)
Both Procurement and Logistics are important activities of any supply chain. Both are very different from each other.A common misconception is that Procurement and Purchasing is the same activity in an organization.
While both these activities are quite similar, they are not the same. Procurement is the acquirement of long term primary equipment which is directly related to the operations of a company. For example, a fleet of trucks for a 3rd party logistics provider.Purchasing is the acquirement of all other secondary items such as office equipment, pens and papers etc.
Now, coming to logistics. A common misconception is that logistics and transportation is the same thing. Again, both these activities are quite close to each other but do have a few fundamental differences. Transportation is simply transporting something from point A to point B. Logistics is much more than that. Logistics include planning the route, Understanding and fine tuning the weight to size ratio. Deciding what sort of packaging to use. Developing emergency procedures incase things go south and all the other activities associated with moving an item from one place to another.Logistics is the main and by far the most important activity of supply chains.
Procurement is the act of acquiring works, goods, and services from external sources. Logistic is to handle with supply of procured works, goods, services.
A procurement supply chain person is directly responsible for the purchasing or procurement of any product (i.e. raw materials, components in manufacturing), services (logistics or otherwise). A logistics supply chain person is focused on the logistical cost and efficiencies within the supply chain of an organization.
Procurement is a act of acquiring products/materials / services / works in systemic manner and time frame.
Logistics is a part of supply chain management to transport materials /equipments /manpower etc
