You are on page 1of 1

Supply Chain Management focuses on the planning, procurement, stocking, and shipping of products or materials.

This can include


vendor selection and negotiation, establishing stocking and distribution strategies, and the logistics of delivering products or materials.
Operations Management is a more generic term and could refer to the execution side of the supply chain (such as warehousing), or
manufacturing (assembly) or any support activity (such as packaging).

Supply Chain Management (SCM) is the control and monitoring of the procurement and use of material and equipment resources
required to manufacture the product(s) which your company provides its end users. The specific activities involved in doing this can be
as simple or as sophisticated as your organization and its management resources can support. The end goal of SCM is the elimination
of inefficiency and risk, the reduction of costs, and the improvement of profit.

Operations Management (OM) is a larger set of activities that includes SCM. OM is engaged in controlling and monitoring every aspect
of the process used to produce your company's product(s), from the procurement of materials, through the production process, and to
the delivery of your product to the end user. Depending on your product, OM activities can be influenced by, or can extend beyond
delivery of the product and into services rendered as a result of delivering the product, or even at the front end of the process and into
activities related to the design of your products. For instance, product design choices (DFM) can be influenced by material, equipment,
process, technology, and even personnel resource limitations recognized through Operations Management.

You might also like