Operations management is the intermediate part in which the product is created from raw materials. The supply chain is how you obtain and reach customers. Supply chain management is the management of the flow of goods and services and includes all the processes that transform raw materials into final products. It involves the active streamlining of a company's supply-side activities to maximize customer value and gain a competitive advantage in the market.
The supply chain is essential for managing operations because it determines how resources will flow through the organization. Operations managers must plan and coordinate supply chain activities to ensure that the right resources are available at the right time and in the right place. Supply chain operations include the systems, structures, and processes for planning and executing the flow of goods and services from supplier to customer. To maximize efficiency, it is essential to evaluate both internal operations and the expanded supply chain that includes suppliers and customers.
The information workflow is a fundamental part of managing supply chain operations because it ensures that all stakeholders have the information needed to make informed decisions about the operation.. With so many places along the supply chain that can add value through efficiency or lose value due to increased expenses, an appropriate SCM can increase revenues, reduce costs and influence business results. Supply chain management also has the function of determining the “capacity and location” of the various activities and operational teams. The increase in levels of competition between supply chains has led to a review of customer satisfaction techniques and the supply of a wider range of specific goods and services is being developed to capture customer satisfaction.
According to Shah (200), the role of a supply chain is also identified in making decisions about supply chain activities and processes. What supply chain management is today is largely the result of market developments, digital transformations and changes in consumer preferences. In general, there are often six different main models that a company can adopt to guide its supply chain management processes. The globalization of business is another trend that is likely to affect the management of operations in the supply chain.
While the supply chain provides instructions on when an organization should purchase raw materials and the criteria for outsourcing, operations management limits its mandate to planning the use of raw materials in the production process and to overseeing the organization's human resources in particular. They can help organizations keep track of different participants in the supply chain, including suppliers, warehouses, transportation companies, retailers, manufacturers, and customers. Supply chain management is the management of the entire process of converting raw materials into a final product. Successful sales and marketing are based on effective supply chain models that help ensure that the right quality product is available in the right place at the right time.
For example, if a supplier is late in shipping raw materials, the operations manager will have to find a new supplier or make other arrangements so that production can continue as scheduled. Each supplier acts as a link that moves a product along a production chain, from raw material suppliers to manufacturers and retailers. In general, supply chain management offers several opportunities for companies to improve their profit margins and is especially important for companies with large, international operations. Strategic supply chain operations lead companies towards sustained improvement, which is fundamental to business operations, including company costs and profits.