The main difference between supply chain management and operations management is that the supply chain is mainly concerned with what happens outside the company (obtaining materials and delivering products), while operations management deals with what happens inside the company. Supply chain management primarily involves managing force activities, which are goods and services. Whereas operations management mainly involves managing operations or functions. Operations management is, on the other hand, the management of processes at production levels.
The operations management team tries to balance costs with revenues to achieve the highest possible net operating profit. Supply chain management selects these parties and establishes the terms under which the entities will operate. It offers an outline to the organization's line managers, on which line managers can determine the refined course of action with respect to the organization's decisions. The supply chain analyzes the links between levels of the chain, while operations management analyzes the processes at each level of production.
Within the framework of operational decisions, supply chain management assumes the function of shaping the particular activities of operations at the supply chain level. However, it is clear that both supply chain and operations management deal with activities at different levels of production. The operations management planning process includes forecasting the future operations of an organization and developing plans for all activities in the production process up to the delivery of products to end consumers. This document seeks to analyze the relationship between supply chain and operations management with respect to the functions of the supply chain in operations management practices and performance.
Operations are the way to do that, said Lee Buddress, associate professor of supply management and logistics at Portland State University. Supply chain management also has the function of determining the “capacity and location” of the various activities and operational teams. Supply chain management is very important for all organizations, as it improves efficiency, effectiveness and resource management. Operations management, on the other hand, makes decisions regarding the plans and organization of the production process.
On the other hand, operations management involves planning, organizing, staffing, controlling, directing and monitoring the activities of the organization. Therefore, the supply chain determines operations management activities or, in other words, the supply chain affects operations management activities. The functions of operations management involve ensuring that the activities involved in the company's operational processes are carried out efficiently with minimum levels of inputs and with the corresponding maximized production capacity.
