The Difference Between Supply Chain Management and Operations Management

Supply chain management and operations management are two distinct yet related disciplines. While supply chain management is mainly concerned with what happens outside the company, operations management deals with what happens inside the company. Supply chain management is essential for organizations as it improves efficiency, effectiveness and resource management. On the other hand, operations management involves planning, organizing, staffing, controlling, directing and monitoring the activities of the organization. Logistics management is a part of supply chain management that plans, implements and controls the efficient and effective flow and storage of goods, services and related information between the point of origin and the point of consumption to meet customer requirements.

The supply chain management process includes the design, planning, implementation, control and observation of all supply chain activities. Operations and supply chain management (OSCM) includes a broad area that encompasses both manufacturing and service industries. Inventory control management, inventory reduction, demand forecasting are some of the various supply chain management tools available. Supply chain management focuses mainly on things that happen outside the company or commerce. On the other hand, most of the time spent managing operations is spent planning, directing, organizing or performing functions. Operations management has several political issues such as determining the size of production plants and project management methods.

To learn more about how you can contribute to more successful outcomes by moving up to a position in operations management or supply chain management, talk to a professional advisor at Kettering University. Logistics management is an integrative function that coordinates and optimizes all logistics activities.