Please discuss if you think there is a clear distinction bet

Please discuss if you think there is a clear distinction between the fields of \"operations\" and \"supply chain\". Is there an overlap in the processes in both these fields?

Solution

There is a clear distinction between operations and supply chain management in that operations management occurs internally while supply chain management occurs externally. Supply chain is mainly concerned with what happens outside the company such as obtaining materials and delivering products, while operations management is concerned with what happens inside the company.

Operations management can be strategic, tactical and operational. For example, an operations manager may be responsible for determining the location of the manufacturing plant, or the structure of a communications network. Designing the physical plant and selecting equipment may come under their direct supervision, along with managing inventory and monitoring quality control. Operations managers work with various departments toward common goals such as making sure the company’s products are manufactured according to specifications, packaged properly, sold to the right retailers and marketed successfully.

Supply chain management is focused on planning products that consumers will want to buy, sourcing raw materials, components or parts, transporting and warehousing products, delivering the goods to the point of purchase, vertical and horizontal integration, third part management.

There is an overlap in the processes. In most organizations supply chain management is a subset of operations management. This kind of situation can be observed in small organizations or consulting companies, where operations are performed in conjunction managing the supply chain. For example operations ensure that the products are received and produced in time with optimal efficiency while supply chain ensure that the raw material for the same product come from vendor in coherence to the DOH inventory, warehouse space available and demand forecast.