Do procurement and supply chain folks exist in the same universe?

Steve Banker considers the sometimes conflicting approaches of procurement and supply chain professionals.

As a supply chain guy, I have to say that the whole concept of PICOS makes me uncomfortable.  A core concept of supply chain management is that companies shouldn’t fall into the trap of trying to optimize every function in isolation, thus sub-optimizing the supply chain as a whole. 

In other words, procurement, manufacturing, and logistics need to consider how their actions (driven by their core metrics) might adversely impact other supply chain functions, either now or in the future.  Driving your supply base to the brink of bankruptcy, or sometimes actually into bankruptcy, is poor risk management.  A well-run supply chain, which includes your core suppliers, should have a certain degree of “win-win” and team orientation associated with it.

For many procurement guys, this philosophy is derided as simplistic and fundamentally un-businesslike. 

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