Difference Between Supply Chain Management and Operations Management

Business organisations are fairly complex structures. There are many aspects to their working and all of them are equally important. It is crucial that all of them are given due importance and proper care is taken in order to ensure the smooth running of business operations.

There are many terms that we often come across when discussing business matters. Supply chain management and operations management are two of them. Sometimes people get confused by the two and consider them to be one and the same. However, there are certain differences that must be kept in mind when thinking about these concepts.

Supply chain management is the part of the production process in which the supply chain for the raw materials and the finished goods is taken care of through various processes that not only work independently but together as well. On the other hand, the operations management is related to the management of the overall operations that are related to the production process as well as allied matters.

The scope of the supply chain management is limited to the supply chain only whereas the operations management deals with all parts of the operation that are there in an organisation.

Instructions

  • 1

    Supply Chain Management

    Supply chain management is one of the most important aspects for any business since it is responsible for transportation of goods in to the production, transportation of work in progress and deliverance of the finished goods to the end user.

    A strong and effective supply chain is crucial for the success of the products and services as well as the organisation since the best of products are bound to flop if production is not done on time or in case of the product reaching late in the market.

    The main scope of the work is to deal with matters that are related outside of the production facility.

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  • 2

    Operations Management

    This is a broad term that is related to all operations that take place within an organisation and deals with the smooth running of not only production but of all the aspects of an organisation. It deals with the receiving of the raw materials, the production process, the delivery of the good to the retail outlets or the end users depending on the nature of the work.

    Anything from planning to execution in the whole process comes under this field. The scope of the field is extremely big and blankets the whole operations of an organisation.

    - Image Courtesy: symphony-metreo.com

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