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Difference between Operation Managment and Supply Chain Management
  • Last Updated : 16 Nov, 2020

1. Operation Management :
Operation Management, as name suggests, is a management that mainly focuses on managing operational processes more efficiently that includes conversion of input into output (goods and services) and in turn add value for customer.

2. Supply Chain Management :
Supply Chain Management, as name suggests, is a management that mainly focuses handling entire product flow, management of wide range of components and processes such as storage of product, delivering product, etc.

Difference between Operation Managment and Supply Chain Management :

Operation ManagementSupply Chain Management
It mainly focuses on management of operations or functions.It mainly focuses on management of supply activities i.e. goods and services.
This management mainly focuses on things that happen inside company or business.This management mainly focuses on things that happen outside company or business such as delivering products at appropriate location, getting materials, etc.
It manages process of producing product.It manages supply or movement of produced product.
Most of time of operation management is spend on planning, managing, organizing daily operations or functions.Most of time of supply chain management is spend on evaluating suppliers i.e. assessing and approving suppliers by qualitative and quantitative assessment and negotiate contracts i.e. creating contracts between parties.
Process of operation management includes planning, organizing, supervising processes and in turn increases improvements.Process of supply chain management includes design, planning, execution, control and monitoring all supply chain activities.
Various operation management tools available are Objective and key results template, Lean, Six sigma, etc.Various supply chain management tools available are warehouse management, lean inventory, demand forecast, etc.
Its benefits includes increase in revenue, motivated employees, increase in customer satisfaction, increase in product quality, etc.Its benefits include reduction in overhead costs, improvement in cash flow, improvement in risk mitigation, improvement in quality control, etc.
Its main objectives includes utilize resources of organization to create products or services or goods, increase customer satisfaction, produce good of expected quality on given time.Its main objectives is to maximize overall value that is generated, improve overall performance of organization, managing inventory effectively, etc.

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