Supply Chain Management vs. Operations Management

In smaller companies, there can be an overlap between Supply Chain and Operations Management. Be it the sector of Supply chain management services or the operations one, managers in both of them supervise parts, supplies, and people. Both of them need the capability of communicating throughout departments externally and internally, for leading teams and people, as well as for managing human capital. 

All in all, the supply chain is moving and sourcing both the finished product and the raw materials. On the other hand, operations management is the middle part where a product is produced from raw materials. The supply chain is how you get it as well as get it to the customers while operations management is about how you make it. A major distinction between supply chain management that deals with Accounting & inventory Management & operations management is that the former one is majorly concerned with what occurs outside a Company, delivering products and obtaining materials, however, the latter is related to what takes place inside the organization.

  • The activities of supply chain management are often similar across industries however, operations management’s responsibilities and roles can vary hugely as per the service or product a business produces. 
  • It means that an operations manager often oversees and plans the regular processes and operations whereas, the supply chain managers spend time evaluating suppliers and negotiating contracts. 
  • The operations managers make important decisions on production, design, workflow, staffing, and planning. 
  • In the current global market, supply chain managers are supposed to have an understanding of various important Supply chain management services like working with logistics, customers, and suppliers across the world. 
  • The field of Operation management includes directing as well as coordinating production, sales, distribution, or price of products while the supply chain manager forecasts demand products or materials. 
  • An operations manager handles finance activities which include sales as well as other data and on the other hand, the supply chain manager creates supply plans for ensuring raw materials’ availability. 

Although these profiles share a few intersecting and overlapping skills, dedicated experts should take their area of interest in mind. For example, in case you are interested in the global markets, quality control, logistics, and transportation, as well as designing value, you have a keen interest in the Supply chain management services. However, in case you like spearhead productions, planning, workflow, and staffing, you should go for operations management. You decide to choose the right field as per your previous education, skills, career objectives, and interest. 

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