Purchasing vs Procurement – again

I had earlier written up here about the various terms used commonly in the supply chain – buying, purchasing etc….I recently stumbled upon a nice blog (focused on procurement) that talks about this topic here

Moral of the story seems to be that one should not worry too much about the technicalities of the definitions….instead focus should be on the broad functional aspects….The post also talked about how finance departments don’t seem to agree with what the purchasing departments claim as savings (apparently 73% of all savings are disputed by fin!!)…

There was also a startling statement/conclusion of senior execs that purchasing departments are best run by people without purchasing backgrounds:-)!!!! now that is what i call ‘sourcing’ a can of worms!!

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