Supply Chain Management vs. Operations Management

Difference Between Supply Chain Management and Operations Management

Managers in huge corporate tend to get confused between these two terms. Both of these, Supply Chain Management and Operations Management have similarities as well as dissimilarities. Let us discuss them.

Supply Chain Management (SCM) can be regarded as an internal matter in a company and Operations Management (OM) as an external one. In spite of that, the two of them are interrelated as well as interdependent to each other. As OM consists of activities regarding manufacturing a product or providing a service, SCM forms a part of OM.  Obtaining and usage of material and equipment require for the manufacture of a product is controlled by SCM. Its target is to erase ineffectiveness in the chain, reduce costs and enhance profits.

OM is occupied in supervising each facet in the process of manufacture of products done in a company, and it included SCM. Taking the material inside and outside in a company is what SCM gets done, while what we want to do with that material is managed by OM. SCM does not depend upon the kind of business that you do. You purchase the raw material, store it, convert it into final product, store it again and sell it finally. Hence, the supply chain remains the same. How and what one does with the raw material comes under OM. It uses manpower and machines to manufacture its products and is not the same for every business.


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