Operations management and supply chain management are two essential concepts in business management. While they share some similarities, they differ in their approach, scope, management approach and level of complexity. Understanding the differences between these two concepts is essential to effectively manage daily business operations or the flow of goods, services and information through a network of suppliers, manufacturers, distributors and customers. The primary distinction between supply chain management and operations management is that the supply chain is mainly concerned with what happens outside the company (obtaining materials and delivering products), while operations management deals with what happens inside the company.
Operations management, as the name implies, is management that focuses mainly on managing operational processes more efficiently, which includes the conversion of inputs into products (goods and services) and, in turn, adding value for the customer. Supply chain management, as the name suggests, is management that focuses mainly on managing the entire flow of products, managing a wide range of components and processes, such as product storage, product delivery, etc. Whether it's an internal or external motivation, it's time to change the way supply chain management works. This is partly because supply chain management has become more complex over time and there has been a demand for highly trained professionals. In today's world, communications, planning, negotiations, and relationship management are an integral part of a supply chain manager's repertoire.
Supply chain management (SCM) has quickly become one of the main focal points that organizations and manufacturers, both large and small, must pay attention to. Both supply chain management and operations management are likely to add value to companies by supporting efficient processes that generate higher revenues for the company. The two areas related to supply chain management and operations management must work together in close collaboration. Operations management addresses these concerns to reduce costs, improve efficiency, increase competitive advantage, and provide best practices to achieve business objectives. Time and money are two of the main factors that guide all business decisions, and for supply chain managers and operations managers around the world, now is the time to make those changes. Operations are the way to do it, said Lee Buddress, associate professor of supply management and logistics at Portland State University.
There have been many changes in the world of supply chains in terms of their manufacturing and production processes. To get started in this field, professionals must be trained to build relationships with the organization's stakeholders and be familiar with different technological applications. While operations managers and supply chain managers lead different areas of an organization, both are called upon to contribute to business value. The flow of goods from primary suppliers to manufacturing and final delivery requires a complex management process that includes many other important considerations. For more information on the areas and courses of supply chains and operations management included in the concentration or program, see the academic curriculum. In conclusion, understanding the differences between operations management and supply chain management is essential for businesses to effectively manage their daily operations or flow of goods. Both areas are likely to add value to companies by supporting efficient processes that generate higher revenues for the company.