Guiding the Divide: Understanding Supply Chain Management vs. Operations Management
Supply chain management (SCM) and operations management are interchangeable. However, they represent distinct concepts that play crucial roles in the overall success of an organization. By understanding the differences between these two fields, businesses can optimize their processes, improve efficiency, and enhance customer satisfaction. Definitions and Scope Supply Chain Management (SCM) is the comprehensive management of the flow of goods and services, including all processes that transform raw materials into final products. It encompasses the planning and managing of all activities involved in sourcing, procurement, conversion, and logistics management. SCM integrates supply and demand management within and across companies, maximizing value creation while minimizing costs. Operations Management deals specifically with techniques and daily operations within a company. It includes planning, organizing, supervising processes, and redesigning business operations of goods or servic