What is the difference between operations management and supply chain management

In this post, we will evaluate the commonalities and differences between these two areas so that you can decide better which career path is best for you. Supply chain management consists of the collection of different materials, the manufacturing of the products, and delivery to the customers. A supply chain manager coordinates with other key players in the supply chain process — suppliers, logistic teams, and customers and often working internationally, managing suppliers, warehouses, purchasing orders, and forecasting.

Another important aspect of supply chain management is risk evaluation and security. These professionals should evaluate suppliers regularly along with their strategies and regulations, improve customer services, forecast demand to avoid over-supply, and coordinate with others in the business including finance, marketing, quality assurance, sales. Supply chain management is essential for businesses because it can help them reduce costs with improved efficiency from leaner inventories and suppliers, provide better services with faster delivery and respond quickly to market innovations and demands.

This field offers the assurance of corporate responsibilities in every aspect of production. This field focuses on the efficient and effective functioning of a business. It includes maintenance, analysis of the production systems, and material planning. An operations manager coordinates with the internal operations, not telling how the products or services are moved but how they are developed.

Sign in. Finding a Job. What is supply chain management? What is operations management? Supply chain vs. Supply chain positions. Warehouse clerk. Logistics coordinator. Inventory associate. Warehouse supervisor. Logistics manager. Supply chain manager. Operations management positions.

Operations coordinator. Operations manager. Operations analyst. Director of operations. Chief operating officer. What Is a Service Industry? Plus 26 Examples. It deals with the designing and controlling the process of production and business operations dealing with goods or services.

It deals with efficiency of production to yield maximum results. Basically, its primary function is to get the maximum production results from whatever resources are available to the company. Hence, it can be said that the operations department oversees the entire production from the beginning which includes procurement of raw materials, storage and transportation, the utilization of the said resources, as well as people, equipment, technology, information, and other resources.

It singular goal is to utilize all resources of the company to maximize production, and hence maximize profit. The functions of a company or organization can be divided into three broad categories: marketing, finance, and operations. Operations is basically what the company does, the marketing and finance is there so that the company can keep conduction operations.

So, in short it can be said that operations management takes care of all the operations i. Whereas, logistics is just a segment under operations as it deals with storage and transportation of materials, resources, work-in-progress, and finished goods. The confusion often occurs as supply chain management, which includes the aspect of logistics, and operations management are interrelated and dependent on each other.

In fact, in a number of organizations, supply chain management is a department under Operations Management. Therefore, the logistics department can be part of the supply chain management department, or the entire SCM can be under operations management.

Planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. They both require the ability to communicate across departments internally and externally, to lead people and teams, and to manage human capital.

Operations management is the part in the middle where the product is created from the raw materials. Supply chain is how you get it and get it to customers. Depending on the size of the organization, operations managers manage day-to-day operations for an entire business or they may manage a specific part of the production process.

Operations has a more internal company focus relative to supply chain. Operations managers make key decisions on design, production, planning, workflow, and staffing. Typical responsibilities include:. Generally, supply chain managers work more externally than operations managers. They make key decisions on suppliers, coordinate purchasing, warehousing, and forecasting.