How is “procurement” linked to logistics?

Procurement is fundamentally linked to logistics as it encompasses the processes involved in acquiring the goods and services necessary for logistics operations. This includes identifying what materials or products are needed, sourcing suppliers, negotiating terms, and ensuring timely delivery. Without effective procurement, a logistics operation may struggle to obtain the resources required to function efficiently, impacting the entire supply chain.

The connection between procurement and logistics is critical as it ensures that the right products are available at the right time and in the right quantities, directly influencing inventory management, delivery times, and customer satisfaction. This synergy allows logistics operations to run smoothly and meet established performance targets.

While procurement does touch on various areas such as contract negotiations, its primary role in logistics is centered around acquiring the essential goods and services that facilitate the movement and storage of products throughout the supply chain. This broader perspective emphasizes the central position of procurement in effective logistics management.